ZCCM-IH through its wholly owned manganese mine Kabundi Resources Limited (KRL) on 7th November 2020 handed over various infrastructure and items to fulfil its Resettlement Action Plan (RAP) obligations.
Valued at K4.5 million, the items and infrastructure handed over included:
Nine-by-three bedroomed houses for the relocation of the Project Affected families in Kampumbu Resettlement area;
Tools and farming inputs to accompany each house handed over;
Monetary compensation for three of the eleven families relocated that opted to receive cash rather than one of the three bedroomed houses constructed;
A new rural health centre and a house for a medical staff at Kampumbu; and
An additional one-by-two classroom block at Kampumbu Primary School, as well as teacher’s house.
The event was graced by the Minister of Mines and Minerals Development Hon. Richard Musukwa, whom was accompanied by Serenje Member of Parliament Hon. Maxwell Kabanda, Central Province Permanent Secretary Mr. Bernard Chomba, Serenje District Commissioner and Council Mayor, as well as various senior government officials. Also in attendance were the ZCCM-IH CEO, and several ZCCM-IH Board of Directors.
FIRST Quantum Minerals (FQM) Limited posted record quarterly copper production of over 211,000 metric tonnes in the third quarter of this year, up 10% from the same period last year, mainly driven by its unit Sentinel mining company based in Kalumbila.
And the FQM says it is working to manage the logistical challenges posed by closing trade borders in response to the coronavirus pandemic using other avenues where possible.
In a statement announcing its financial results for the third quarter of 2020, the FQM posted a total of 211,396 tonnes of copper during the period ending September 30, up from 192,510 tonnes produced during the period. corresponding last year, mainly driven by the increase in productive production at the Sentinel copper mine, among other units.
“211,396 tonnes of total copper production in the quarter, up 10% from the same period in 2019, due to record production at Sentinel and Cobre Panama. Sentinel performed exceptionally well during the quarter, achieving its strongest quarterly production on record of 70,829 tonnes and record cash costs. Increased throughput and rising grades resulted in a 25% increase in copper production compared to the same period in 2019, while lower maintenance costs, lower fuel prices and depreciation of currency have resulted in improved unit costs, ”the FQM said in a statement.
“Performance at Cobre Panama was strong as it went from preservation and safety maintenance in July to full production levels in August, slightly above expectations. Copper production during the quarter amounted to 62,055 tonnes, which is significantly higher than the same period in 2019. Kansanshi performed steadily during the quarter. Copper production of 54,430 tonnes was slightly lower than in the third quarter of 2019 due to lower grades and recoveries despite increased throughput. Treasury costs were lower due to currency depreciation and lower fuel costs. Production forecasts for 2020 have been updated. Total copper production forecast for 2020 has been increased to between 750,000 and 785,000 tonnes; gold production is now expected to be between 245,000 and 260,000 ounces and the forecast for nickel production has been reduced to 13,000 – 15,000 tonnes.
In contrast, sales revenue jumped 42% to over US $ 1.4 billion in the period ending September 30 from the corresponding period a year earlier, in part due to the increase in sales volumes of its Solwezi-based kansanshi Mining unit.
“Sales revenue for the quarter of $ 1,402 million, up 42% from the comparable period of 2019, was primarily attributable to Cobre Panama’s commercial copper and gold sales volumes,”
volumes in Kansanshi and higher metal prices, ”he said.
And the FQM said it was working to manage the logistical challenges posed by closing trade borders in response to the coronavirus pandemic using other avenues when possible.
“COVID-19 has had a direct impact in Cobre Panama where the operation was placed on preservation and security maintenance from April 7, 2020, following the Panamanian government restrictions related to COVID-19. The company’s other operations have not been significantly affected by the restrictions stemming from COVID-19. The company has not experienced any significant disruption to supply chains and product shipments since the start of the pandemic. The company is working to manage the logistical challenges of closing trade borders, using alternate routes where possible. The border restrictions, if ongoing, could cause delays in the supply chain, ”said the FQM.
Francis Kaunda can best be remembered as an industrialist who managed ZCCM at the height of its capabilities. He was known as one of the greatest minds of his generation. A softly spoken but confident leader who socialized with freedom fighters in his youth. He spent almost 30 years running one of the biggest mining companies in the world and in his later years dedicated his time to writing his memoirs.
Francis Kaunda
History
Having completed his initial studies at Munali Secondary School, he was admitted to the school of medicine at the University of Ghana (1961). He was then convinced by a young Kenneth Kaunda that he should transfer into social sciences as the young revolutionary needed more people with administrative skills for his first government. He was educated at Howard University in the United States and also regularly attended the summer school at Georgetown University. Georgetown was known for taking in promising young African leaders at the time. He graduated with a degree in Economics and Political Science in 1966.
His education instigated his relationship with various civil rights and independence movement leaders across the world. In his autobiography: ‘Things to remember Not to forget’, he recollects that his time in Ghana was spent socializing with the young intellectuals of the time who would go on to be great leaders with Nelson Mandela, Amilcar Cabral, Sam Nujoma and Eduardo Mondlane. During his time at Howard he was able to meet Martin Luther King Jr, Malcolm X, Stockley Carmicheal and James Meredith. He details how his time as a young student was spent with hard study followed by walking everyday from Mount Makulu to Freedom House to seek the advice of his close friend and freedom fighter Dr Kenneth Kaunda. Dr Kaunda was always fond of the young and intelligent Mr Kaunda and was a mentor to him for much of his young career.
Employment
He was then employed as a secretary of cabinet under the pupilage of the late Valentine Musakanya. Shortly thereafter he joined Roan Selection Trust (RST), one of two privately owned mining companies at the time. During his time there the company revenues rose steadily from around $140 million per year to $165 million with a profit of around $16 million. While he was still an employee at RST Kaunda announced the Nationalisation of the mining corporations. This catapulted him to be the head of the newly established Metal Marketing Cooperation (Momaco). Shortly after he took over from Wilson Chakulya as the head of Nchanga Consolidated Copper Mines Limited (NCCM). David Phiri was at the time head of Roan Consolidated Mines (formerly RST) and the two companies merged in 1981 to create ZCCM.
According to the World Bank records, under his leadership ZCCM accounted for 85% of foreign exchange earnings ($1billion per year at the time), 15% of the country’s total GDP and 30% of the government’s revenue ($250 million at the time). The average production of copper was around 430,000 tonnes per year (based on 1975-1985 numbers). The company had 67,000 employees and the company was known for building schools, medical services and housing for the general public.
Quote on the Future of Zambian Mining
Currently, the country is in a position where we are receiving 5 cents for every $1 of copper that is being produced in the country. While receiving a lifetime achievement award for his career in 2017 he had this to say:
“It should be realised that we, Zambians, are the owners of the resources and we should get a fair return for our people, while also taking into account that the mining investors should have a return on their investment because they have put in money and technical know-how. So, a lot of responsibility is needed and that is where a win-win situation is expected.”
He serves as an inspiration to many young Zambians and his legacy throughout Africa will be remembered for a long time to come.
REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR A CONSULTANT TO CONDUCT A FEASIBILITY STUDY INTO SETTING UP A PRECIOUS METALS PLANT
1.0 BACKGROUND
ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holding company which has a majority of its investments held in the copper mining sector of Zambia. ZCCM-IH’s majority shareholders are the Industrial Development Corporation (IDC) with 60.3%, Government of the Republic of Zambia (GRZ) with 17.3% shareholding, National Pensions Scheme Authority (NAPSA) with 15% and other shareholders with 7.4%.
The company has a primary listing on the Lusaka Stock Exchange and secondary listings on the New York Stock Exchange, Paris Euronext (Euronext) and London Stock Exchanges.
ZCCM-IH has been mandated by the GRZ to spearhead the development of the gold sector in Zambia. This will be achieved in four (4) ways:
ZCCM-IH opening up and operating its own gold mines under the dedicated subsidiary company, Zambia Gold Company (ZGC);
ZCCM-IH entering into joint venture partnerships for mining and processing of gold;
Formalization of the informal Artisanal and Small Scale Gold Mining (ASGM) sector, including purchases from the ASGM sector; and
Re-establishment of a local Precious Metals Plant (PMP) to refine the gold and associated Precious Metals (PMs).
2.0 PROJECT RATIONALE
The Feasibility Study (FS) that ZCCM-IH plans to undertake is one that focuses on the re-establishment of a local PMP, whose principal feed is Anode Slimes from the Electro-Refineries (ERs) in the country. The PMP should, however, also make a provision for processing of other sources of gold, which includes:
ZGC Gold production;
Production from joint venture operations;
Third party producers, including the ASGM sector; and
Dore anode produced by Kansanshi Mine plc (KMP), which is currently refined abroad.
The Zambian copper mining industry produces anode slimes (slimes) from the refining of Smelter anodes. These slimes were previously processed within the country from 1977 to 2004 at the Ndola Copper Refinery – Precious Metals Plant (NCR – PMP).
Zambia Consolidated Copper Mines Ltd. (ZCCM Limited) operated the NCR – PMP from 1982 to 2000, when it was privatized and ownership passed to Minerva (Zambia) Limited, a subsidiary of the Binani group. Minerva operated the NCR – PMP from 2000 until 2004, when the plant was shut down.
Subsequent to that, the slimes and other semi-processed precious metals such as the Dore anode produced by KMP have been shipped offshore for processing into final products.
The NCR – PMP produced the following products:
Gold, in bullion form;
Silver, in bullion form;
Platinum, Palladium and other PGMs such as rhodium, “platinum salts” form for further processing offshore;
Selenium, in flake form; and
Copper, in copper sulphate form, which was sent to the Leach plants for electro winning.
ZCCM-IH now invites eligible firms to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions etc.).
Interested firms may obtain further information at the address below during office hours between 08:00 – 13:00 hours and between 14:00 – 17:00 hours local time from Monday to Friday.
A firm will be selected using the Quality and Cost Based Selection (QCBS) method. Interested firms must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below not later than Tuesday, 10th November 2020.
Procurement Manager ZCCM Investments Holdings Plc ZCCM-IH Office Park Stand No. 16806, Alick Nkhata Road Mass Media Complex Area P.O. Box 30048 Lusaka. Email: kabwek@zccmnew.wpenginepowered.com
NANCY MWAPE, Lusaka
IN TODAY’s contemporary world, gold does not just imply affluence, material wealth and extravagance but it also gives an expression of style and elegance.
The price of the precious metal on the international market has since reached dizzying heights.
On the London Metal Exchange, gold is fetching around US$1,900 per ounce.
Realising that gold mining and export could play significant role in diversifying Zambia’s economy, job creation and economic development, Government has declared gold as a strategic mineral.
However, despite Zambia reporting an increase in gold occurrences, the sector is mainly dominated by artisanal and small-scale miners who in most instances, operate illegally.
The precious metal is smuggled out of the country mostly by foreigners.
To strategise on a comprehensive mechanism to formalise gold mining and trading in Zambia, Rufunsa district has become a serene ambiance for most of Government’s initiatives aimed at formalising the sector.
Rufunsa’s Chintimbwi area councillor Josias Malunga is confident that with Government formalising gold trading in Zambia, the sector will create jobs for the unemployed youths.
“Gold mining is a game- changer. If well managed, it would translate into improved living standards among our people, job creation and families graduating from thatched homes to bricked houses,” Mr Malunga said.
ZCCM-Investments Holdings (IH) chief executive officer Mabvuto Chipata said the formalisation of the sector will ensure activities are undertaken in a sustainable manner that complies with various international standards and CLICK TO READ MORE
THE price of alluvial gold in Zambia has risen to K1,000 per kilogramme from K600 following Government’s decision to formalise the open market by establishing pilot gold trading lines in four districts.
Currently, pilot gold trading is conducted in Rufunsa in Lusaka Province, and Vubwi, Lumezi and Lusangazi districts in Eastern Province.
ZCCM-Investments Holdings (IH) chief executive officer Mabvuto Chipata said: “With the establishment of pilot gold trading lines, miners are no longer exploited as it was before ZCCM-IH went into the market.”
Mr Chipata said the sector has immense potential to create wealth and jobs for local communities.
“We have also seen an increase in the realisation by the miners to be compliant and CLICK TO READ MORE
JOB ADVERTISEMENT
The Company invites applications from suitably qualified and experienced persons who are innovative, energetic, and performance-driven to fill the position of; RISK OFFICER – INVESTMENTS (ZH4) ONE POSITION Please refer to the job description below for detailed information about the job.
Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than Tuesday 20th October 2020
Human Resources Manager
ZCCM Investments Holdings Plc
ZCCM IH Office Park, Alick Nkhata Road
P O Box 30040 LUSAKA
JOB PURPOSE:
To facilitate the review of risks in potential investments.
KEY RESULT AREAS PRINCIPAL ACCOUNTABILITIES (MAIN DUTIES)
KEY RESULT AREAS
PRINCIPAL ACCOUNTABILITIES (MAIN DUTIES)
Strategic Partnerships
Facilitates the identification of risks to the strategic partner and partnership.
Facilitates the assessment of impact of the risks to the partner and partnership.
Facilitates the identification of the risk mitigants and conducting of the cost/ benefit analysis of the proposed mitigants on the proposed partner and partnership.
Project Finance
Facilitates the identification of risks to the project.
Facilitates the identification of the risk mitigants and conducting of the cost/ benefit analysis of the proposed mitigants on the project.
Facilitates the assessment of impact of the risks to the project.
ZCCM-IH initiated investments/projects/support
Facilitates the identification of risks to the ZCCM-IH initiated investments/projects/support.
Facilitates the identification of the risk mitigants and conducting of the cost/ benefit analysis of the proposed mitigants on the ZCCM-IH initiated investments/projects/support.
Facilitates the assessment of impact of the risks to the ZCCM-IH initiated investments/projects/support.
Performance of Investee Companies
Reviews the quarterly Board packs and highlight pertinent issues for the attention of the representative directors.
Conducts reviews on the performance of the associate companies and other investments as approved.
REPORTING RELATIONSHIPS
a) Reports to: Chief Risk & Internal Audit Officer
ESSENTIAL/DESIRABLE EXPERIENCE/QUALIFICATIONS
a) Professional Qualification:
Grade 12 Certificate
Bachelor’s degree or professional qualification
Professional membership
A US$500, 000 copper smelting investment is coming to Chingola’s Kasompe Township if the Zambia Environmental Agency will finally approve the project.
Cupola Furnace Copper Smelter will be set up alone Kasompe road by Aman Processing Zambia Limited with the capacity of producing 1.5 tons of copper blisters per day.
This came to light on Friday during the Environmental and Social Impact Assessment conducted by Envirofuture.
The smelter which will employ about 10 people on permanent basis sits on 150×150 metres piece of land.
Envirofuture Consultant Matamyo Simwanda said the smelter will be environmental friendly and all the waste will be properly dumped in some already existing dump sites in Kasompe.
Kasompe residents Angel Musonda and Patrick Mwansa implored the new smelter owners to employ good corporate policy.
Their many focus on the environmental management, recruitment of the locals and social responsibility.
And Chingola Mayor Titus Tembo who was at hand advised Aman to deal with legal copper owners and not illegal miners.
Mr Tembo said Chingola has seen the increase of young boys’ dropping out of school to venture into illegal mining just because there is a ready market at a backyard smelter.
He said that if the council will hear issues of abrogating the Laws, the local authority will not hesitate to shut it down.
The Mayor also took time to reminder the locals that had demands for a hospital, football pitch and other things that Aman was a small firm with less than US$1 million investment.
He said the community should not over demand but should instead work closely with the smelter owners in order to create a win-win situation.
The Group reported a profit for the period of ZMW438.9 million (September 2019: ZMW128 million), mainly due to the following:
• Increase in net finance income from ZMW138.7 million recorded in September 2019 to ZMW327.3 million recorded in June 2020. The increase in finance income is due to exchange gains recorded on foreign denominated assets arising from the depreciation of the Zambian Kwacha from an average of ZMW13.9 per US Dollar as at 30 September 2019 to ZMW17.2 per US Dollar as at 30 June 2020.
• Increase in the Group’s share of profit in associate companies from ZMW154.8 million recorded in September 2019 to ZMW 354.7 million in June 2020. This is mainly due to the increase in the profitability of some investee companies in the mining sector such as Maamba Collieries Limited and Kansanshi Mining Plc.
Group total assets increased by 40% to ZMW 20,262 million in June 2020 from ZMW14, 519 million in September 2019. This is mainly attributed to increase in values of investments inassociates as a result of improved performance of Kansanshi Mining Plc, Maamba Collieries Limited and exchange gains arising from translation of US Dollar denominated investments.
KEY OPERATIONS AND STRATEGIC DEVELOPMENTS
Zambia Gold Company
During the period, Zambia Gold Company Limited (“ZGCL”), 51% owned by ZCCM-IH and 49% owned by Ministry of Finance, was granted Small-Scale Mining in the Mwinilunga District. Exploration and mining works are underway. This is in line with its countrywide mandate to manage the programmes and the activities of the gold sector throughout the entire value chain. ZGCL also continued gold trading during the period with gold purchases extended to the Rufunsa District. Further, ZGCL has been working with artisanal miners in the forming and operationalization of gold artisanal mining cooperatives in various districts.
Ndola Lime Company Ltd Restructuring
The restructuring of Ndola Lime Company Limited (“NLC”) commenced. The restructuring was done through a hybrid of Out of Court Settlement and formal insolvency procedures. In this regard, it was decided that a Scheme of Arrangement (“the Scheme”) and reconstruction of creditors be undertaken.
The objective of the Scheme was to create a new company that was free from liabilities and able to operate more efficiently. Therefore, the new company was incorporated and is known as Limestone Resources Limited (“LRL”). Furthermore, the restructuring involved the transfer of the business and assets of NLC to LRL and the consequent issue of equity shares by LRL to the shareholders of NLC.
Maamba Collieries Limited
On 25 March 2019, ZCCM Investments Holdings Plc provided short-term liquidity support amounting to $10 million to Maamba Collieries Limited (MCL) on condition that the amount was payable within 60 days from disbursement, following the receipt of power sale proceeds from ZESCO.
However, despite the agreed conditions, MCL has still not repaid the advanced sum and as a result of this, ZCCM Investments Holdings Plc instituted legal proceedings against MCL (during the period under review) in the Lusaka High Court seeking the payment of the US$10 million plus damages and interest.
Industrial Development Corporation Ltd Group (IDC) Reorganization Transaction
During the period, the Board of ZCCM-IH considered and approved the proposed IDC/ZCCM-IH Group reorganization exercise whereby:
i) IDC transfers its 25% equity stake in Kagem Mining Limited, at fair market value, to ZCCM-IH;
ii) ZCCM-IH transfers its 71.4% equity stake in Investrust Bank PLC, at fair market value to IDC; and
iii) ZCCM-IH transfers its 100% stake in Mushe Milling Limited to IDC at fair market value. These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalization and Reorganization (or the “Group Reorganization “).
The Group reorganization objective is to achieve optimisation of operations and unlock opportunities for synergy within the IDC /ZCCM-IH Group. The Proposed Group Reorganization will enhance and improve operational efficiency and performance of ZCCM-IH, by realigning and streamlining management oversight on its investments portfolio to support and sustain Company growth and unlock value for its shareholders going forward.
The proposed Group Reorganization is subject to approval by shareholders of ZCCM-IH via a general meeting and the statutory regulatory authorities. The Group Reorganisation is expected to be finalized by 31 December 2020.
CEC Africa Investments Limited
Subsequent to the period under review, ZCCM-IH disposed of its 20% shareholding in CEC Africa Investments Limited. Proceeds from the disposal shall be applied on other opportunities in the mining and other mining related sectors of the domestic economy.
OUTLOOK
Copper prices are expected to increase steadily on the back of solid recovery in demand from China, the largest Copper consumer. In addition, low copper inventories in exchange warehouses, disrupted ore supplies from the top producing region in South America due to the COVID-19 pandemic and US Dollar strengthening are contributing to the bullish outlook for Copper.
By Order of the Board Chabby Chabala Company Secretary Issued in Lusaka, Zambia on Thursday 1st October 2020
Zambia’s mining investment group, ZCCM IH, has recorded a share price increase in its security which is listed on the Lusaka Securities exchange. This is the first increase during the COVID 19 period and created K483.99 million worth of wealth for investors.
“A share price gain of K3.01 was recorded in ZCCM increasing the security to K31.50 per share”, read a SENS announcement published on 8th October 2020 after the closing bell on the stock exchange rang.
The LuSE All Share Index (LASI) which closed at 3,811.75 points, has experienced a downward trend during the year has equities continue to fall due to reduced trading. COVID 19 has impacted many of the listed companies, many of whom have been reporting reduced earnings.
However, the investment group has made significant announcements during the same period. Recently, news broke that their Kanseseli gold mine project had harvested over 50Kg of gold since inception.
Furthermore, signals of the investment group now aligning its strategy around higher value mining activities through actions taken by its shareholder, IDC, in transferring mining assets has continued to show confidence in the group.
With the Minister of Mines in Zambia showing confidence in the group following a visit to one of its gold projects, investors are looking closer at the security and placing their bets on the group by increasing their appetite for gold miner’s security.
ZCCM IH is now valued at K5.065 Billion in market capitalization and makes it the second-highest valued company on the LuSE.
