ZCCM-IH

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Zambia’s ZCCM-IH to appeal against High Court judgment

Zambia’s ZCCM Investments Holdings (ZCCM-IH) Plc, has said it intends to appeal against the ruling of the Lusaka High Court delivered on March 23, 2020 regarding a matter the state-owened company commenced in 2016, against First Quantum Minerals Limited, FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley, and Kansanshi Mining Plc.

In a media statement, ZCCM-IH alleges that the defendants’ conduct on several occasions fraudulently engaged in transactions totaling in excess of $2bn for the benefit of the FQM Group, is detrimental to ZCCM-IH’s interests and those of the nation, and remained committed to protecting the said interests, adding that it will be appealing against the ruling.

In 2016, state-owned ZCCM-IH started the process of claiming up to $1.4bn from First Quantum Minerals Ltd after it accused the Canadian-based metals and mining company of engaging in fraud. The claim included $228m in interest on $2.3bn of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi Copper Mine, as well as 20% of the principal amount or $570m, according to an internal company presentation, dated November 4, 2016.

ZCCM-IH is also seeking $26m as part of a tax liability the Zambia Revenue Authority (ZRA) said Kansanshi owed it and the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.

In papers filed in the Lusaka High Court on October 28, 2016, ZCCM-IH said First Quantum used the money as cheap financing for its other operations.

ZCCM-IH is listed on three stock exchanges namely Lusaka Securities Exchange (primary listing), London Stock Exchange and the Euronext Access (Paris – Marche Libre secondary listings).

The Zambian government holds directly 17.25% shares and its 60.28% shares is held through the Industrial development Corporation (IDC) of Zambia, with the remaining 22.47% held by institutional and private individual shareholders.

ZCCM-IH currently has an investment portfolio of 22 companies, including Kansanshi Mining Plc (20%), Mopani Copper Mines Plc (10%) and Konkola Copper Mines Plc (20.6%). Its shareholdings in these companies range from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, limestone, mining consultancy, financial services and gemstones.

Source: Business Tech Africa
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It’s final: only ZCCM-IH will manage Kansenseli

By SILUMESI MALUMO
WE shall not issue multiple mining rights for Kasenseli gold area in Mwinilunga district as the area will only managed by the ZCCM-IH, Mines Minister Richard Musukwa has said.
Mr Musukwa said that gold had been identified as a strategic reserve and it should be mined in a well-structured and transparent way.
He said in an interview yesterday that Government would not risk by issuing a number of licences because the country would not benefit from the mineral.
Last week, over 100 youths of Kasenseli area in Chief Chibwika’s area petitioned Government to consider empowering them with mining rights at the newly discovered gold mine.
The youths, who gathered at the District Commissioner’s office, requested Government to allow them undertake mining activities in one of the three pits known as veins at the site.
And in receiving the petition, Mwinilunga District Commissioner (DC) Arnot Mapulanga praised youths for expressing their discontent over the gold mining activities at Kasenseli.
Mr Mapulanga said government was cognisant of the fact that any mining firm engaged at Kasenseli must first empower the local citizens, especially youths.
But the Minister said Government would not issue mining rights to any individual while youths would only benefit through the third party arrangement.
“Gold is a strategic mineral which must benefit the entire country and not just a few individuals. So the youths will benefit through an organised structure, once the anchor company ZCCM-IH has now taken over.
“This is a Cabinet decision and it must be respected,” Mr Musukwa said.
He said countries like Botswana had deployed armed soldiers to guard the areas so that the resource was exploited for the good of everyone.
And ZCCM-IH has in-cooperated ZCCM Gold to manage gold mining at Kasenseli area.
ZCCM-IH chief executive officer, Mabvuto Chipata said his management team was in the province on an ambitious program to assess the situation on the ground at Kasenseli gold mine.
Mr Chipata explained that the tour was aimed at ensuring that the resource was harnessed so that exploration works could begin and quickly move into mining.
He said this when he paid a courtesy call on Provincial Minister, Nathaniel Mubukwanu in Solwezi yesterday.

Source: Daily Nation
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Konkola Copper Mines supports fight against Coronavirus

CHINGOLA, 31 March 2020: Konkola Copper Mines (KCM) has provided two clinics in Chingola and Chililabombwe, as holding centres for people who will be suspected to have Coronavirus (COVID-19) in the two districts, and one million two hundred thousand kwacha (K1.2 million) for medical equipment and supplies.

Acting Konkola Copper Mines General Manager Corporate Affairs Shapi Shachinda said the Nchanga South Clinic in Chingola will have a bed capacity of 28 with a possibility of putting up tents on the premises in order to increase capacity in the event of overwhelming numbers, while Clinic 5 in Chililabombwe will initially have at least 5 beds.

The two facilities will be handed to the Ministry of Health in the interim period as holding centres for future COVID-19 suspected cases and will be reverted to normal medical use as Out-patient facilities for KCM once the war against COVID-19 is won.

Mr Shachinda commented: ‘KCM is opening up the two clinics for purposes of holding people who will in the future be suspected to have the Coronavirus, while awaiting their transfer to the main Government isolation centre on the Copperbelt in Masaiti district. The company will also release K1.2 million for procurement of medical equipment and supplies.’

KCM will procure equipment such as ventilators, oxygen concentrators, data scopes, autoclaving machine, incinerator, hand-washing facilities for use during the fight against COVID-19, he said.

Konkola Copper Mines is supporting efforts by the new District Commissioner for Chingola, the Government’s and KCM medical teams to prepare for the management of any reported and confirmed cases of Coronavirus.

‘We have a huge responsibility as a corporate citizen to support the Government’s broader plans to protect people from contracting Coronavirus and to fight the virus in the event that some people would have contracted it in the future,’ Mr Shachinda said.

Konkola Copper Mines has put in place communication protocols to educate and enlighten more than 12,000 permanent employees and those working for its business partners on the prevention of COVID-19, including providing sanitizers in operational areas. The company has printed posters and banners in English and local languages with key messaging, and some of the initiatives will be rolled out to communities in the company’s areas of operation.

Source: Market Screener
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Mining firms in Zambia welcome tax relief measures

LUSAKA, March 31 (Xinhua) — Mining firms in Zambia on Tuesday welcomed the government’s decision to suspend export duty on precious metals and import duty on mineral concentrates in order to cushion the mining sector.

Last Friday, Finance Minister Bwalya Ng’andu announced that the government will suspend export duty on precious metals and import duty on mineral concentrates to cushion the mining sector.

The Zambia Chamber of Mines, an association of mining firms, said the move was the first step in the direction that must necessarily lead to a broader relief package similar to that being deployed by other countries in the face of the coronavirus.

“The value of this announcement is greatly geared towards making better use of latent tertiary ore smelting and refining capacity while the bulk of the industry’s core primary mining and metallurgical processing continues to need cashflow relief to make it through this fight for survival,” Sokwani Chilembo, the chief executive officer of the association said.

He said the response was a crucial recognition on the part of government that it must change tack from its prior focus on raising taxes at all costs.

Zambia, Africa’s second largest copper producer, introduced the taxes which came into effect in January 2020. Mining firms rejected the taxes saying they will kill the industry.

Analysts have since welcomed the government’s decision saying it will bring relief to the mining sector.

Source: Xinhua
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Effects of COVID-19 Disease on the Zambian Mining Industry

ZCCM Investments Holdings Plc (ZCCM-IH) has said that the company intends to appeal against the Ruling of the Lusaka High Court delivered on 23 March 2020 regarding a matter the firm commenced in 2016, against First Quantum Minerals Limited (FQM Ltd), FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley, and Kansanshi Mining Plc.

In a statement released to the media, ZCCM-IH said that the defendants’ conduct, allegedly, among others, that the defendants on several occasions fraudulently engaged in transactions totaling in excess of $2 billion for the benefit of the FQM Group, is detrimental to ZCCM-IH’s interests and those of the nation, and remained committed to protecting the said interests, adding that it will be appealing against the Ruling.

In 2016, ZCCM-IH started the process of claiming up to $1.4 billion from First Quantum Minerals Ltd accusing the firm of engaging in fraud. The claim included $228 million in interest on $2.3 billion of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi copper mine, as well as 20 percent of the principal amount, or $570 million, according to an internal company presentation, dated Nov. 4, 2016.

ZCCM-IH is also seeking $260 million as part of a tax liability the Zambia Revenue Authority said Kansanshi owed it, as well as the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.

In papers filed in the Lusaka High Court on Oct. 28 2016, ZCCM-IH said that First Quantum used the money as cheap financing for its other operations.

ZCCM-IH is triple listed on 3 stock exchanges: the Lusaka Securities Exchange (Primary listing) and on the London Stock Exchange and the Euronext Access (Paris – Marche Libre) (Secondary Listings).

Government holds directly 17.25% shares and its 60.28% shares is held through the Industrial development Corporation (IDC) in Zambia, with the remaining 22.47% held by institutional and private individual shareholders.

ZCCM-IH currently has an investment portfolio of 22 companies, including Kansanshi Mining Plc (20%), Mopani Copper Mines Plc (10%) and Konkola Copper Mines Plc (20.6). Its shareholdings in these companies range from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, limestone, mining consultancy, financial services and gemstones.

Source: Lusaka Times
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ZCCM-IH to appeal against the Lusaka High Court judgment delivered in favour of First Quantum Minerals

ZCCM Investments Holdings Plc (ZCCM-IH) has said that the company intends to appeal against the Ruling of the Lusaka High Court delivered on 23 March 2020 regarding a matter the firm commenced in 2016, against First Quantum Minerals Limited (FQM Ltd), FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley, and Kansanshi Mining Plc.

In a statement released to the media, ZCCM-IH said that the defendants’ conduct, allegedly, among others, that the defendants on several occasions fraudulently engaged in transactions totaling in excess of $2 billion for the benefit of the FQM Group, is detrimental to ZCCM-IH’s interests and those of the nation, and remained committed to protecting the said interests, adding that it will be appealing against the Ruling.

In 2016, ZCCM-IH started the process of claiming up to $1.4 billion from First Quantum Minerals Ltd accusing the firm of engaging in fraud. The claim included $228 million in interest on $2.3 billion of loans that ZCCM-IH said First Quantum wrongly borrowed from the Kansanshi copper mine, as well as 20 percent of the principal amount, or $570 million, according to an internal company presentation, dated Nov. 4, 2016.

ZCCM-IH is also seeking $260 million as part of a tax liability the Zambia Revenue Authority said Kansanshi owed it, as well as the cost of the mine borrowing money commercially that ZCCM-IH said could have been avoided.

In papers filed in the Lusaka High Court on Oct. 28 2016, ZCCM-IH said that First Quantum used the money as cheap financing for its other operations.

ZCCM-IH is triple listed on 3 stock exchanges: the Lusaka Securities Exchange (Primary listing) and on the London Stock Exchange and the Euronext Access (Paris – Marche Libre) (Secondary Listings).

Government holds directly 17.25% shares and its 60.28% shares is held through the Industrial development Corporation (IDC) in Zambia, with the remaining 22.47% held by institutional and private individual shareholders.

ZCCM-IH currently has an investment portfolio of 22 companies, including Kansanshi Mining Plc (20%), Mopani Copper Mines Plc (10%) and Konkola Copper Mines Plc (20.6). Its shareholdings in these companies range from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, limestone, mining consultancy, financial services and gemstones.

Source: Lusaka Times
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ZCCM-IH To Appeal Against FQM Case Ruling

ZCCM Investments Holdings Plc To Appeal Against the Ruling of the High Court in the matter of ZCCM Investments Holdings Plc v First Quantum Minerals, FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley and Kansanshi Mining Plc

30th March 2020, Lusaka – ZCCM Investments Holdings Plc (ZCCM-IH) intends to appeal against the Ruling of the Lusaka High Court delivered on 23 March 2020 regarding a matter commenced by ZCCM-IH in 2016, against First Quantum Minerals Limited (FQM Ltd), FQM Finance Limited, Philip Pascall, Arthur Mathias Pascall, Clive Newall, Martin Rowley and Kansanshi Mining Plc.

In the said matter ZCCM-IH alleges, among others, that the defendants on several occasions fraudulently engaged in transactions totalling in excess of $2 billion for the benefit of the FQM Group.

ZCCM-IH holds the view that the defendants’ conduct is detrimental to ZCCM-IH’s interests and those of the nation, and remains committed to protecting the said interests.

Therefore, ZCCM-IH will be appealing against the Ruling.

Issued by:
Loisa Mbatha-Kakoma
Public Relations Manager
ZCCM Investments Holdings Plc

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Operationalise Kasenseli Gold Mine -Kungo

The Patriotic Front in North Western province says Government will solve the problem of illegal mining at Kansenseli gold mine by quickly identifying an investor to operationalise the mine.

This follows the arrest of two illegal miners by Police.

PF Provincial Chairperson Jackson Kungo says the opening of the mine will also provide the youths in the province the much needed employment.

He says it will also give opportunity to the people in the province to benefit as opposed to the people outside the province because those that where engaging in illegal mining had been identified as not coming from the area.

Mr Kungo says the people of Mwinilunga are eager to start seeing the benefits of having a precious mineral resource in their district.

He told ZNBC News in a statement that once fully operational, the economic landscape of Mwinilunga will change as this will widen the revenue base for Mwinilunga Town Council as well as the Central Government.

Meanwhile, Mr Kungo has called on the police to protect the mine site as per the Presidential directive.

He wondered how illegal miners could access the area and continue with mining when officers have been deployed on site.

Source: ZNBC
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Effects of COVID-19 Disease on the Zambian Mining Industry

By Webby Banda CTPD-Senior Researcher (Extractives)

The Centre for Trade Policy and Development (CTPD) has observed that Mineral commodity prices have plummeted in recent days due to a growing global social panic over the coronavirus disease.

In the case of copper, prices have plummeted from US$ 6,165 in January 2020 to US$ 4,776/tonne on Thursday 26th March 2020. This rapid decrease has put a lot of financial stress on the Zambian mining industry and the economy at large.

A slump in copper prices has an immediate short term effect of reduced generated tax revenue and export earnings. This is likely to affect tax collection because tax instruments like mineral royalty are price-based. These impacts will thereafter affect the exchange rate and translate into higher inflation because Zambia is an import-dependent country. This will further induce macroeconomic instability and negatively affect the growth prospect of Zambia in the short term.

Further in cushioning the impact of plummeted Mineral commodity prices, mining companies are likely to undertake cost savings measures such as cutting down of labour and suspending non-essential projects as a way of responding to the drop in mineral commodity prices. This will be done in an effort to minimize cash outflow.

It must be mentioned that a cut down in labour will have ripple effects to other industries linked to mining. This is so because many businesses surrounding mining investments depend on the consumer spending of income emanating from mining companies.

Persistence spread of the coronavirus will negatively affect production and this will further exacerbate the collection of mineral royalty.

Nevertheless, CTPD wishes to commend Government on the fiscal relief package that has been given to the mining industry communicated through a press briefing by the Minister of Finance. These measures include suspension of import duty on concentrates and export duty on precious metals.

However, recognizing the fact that the mining industry is Zambia’s largest foreign exchange earner, the government needs to widen the incentives by temporarily suspending import duty and VAT on important capital assets that drive production in the mining industry.

The government should also increase capital allowances to 100 percent. These fiscal measures should be applied to help sustain production levels of mining houses amid the COVID-19 crisis.

Other fiscal measures the government can undertake to ameliorate the transmission effect of plummeted mineral commodity prices on the economy include:

  1. Adjusting the money supply;
  2. Taking corrective measures such as the promotion of non-traditional exports; and
  3. Diversification within and outside the mining sector instead of being over-reliant on
    copper.

To prevent the further spread of the virus, Government needs to establish monitoring mechanisms through the Mines Safety Department (MSD) to ensure that mining companies are following the laid down health and safety protocols issued by the Ministry of Health.

Source: Lusaka Times
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Global outbreak of COVID-19 threatens Zambia’s economy

The global outbreak of coronavirus 2019 – COVID 19 is threatening Zambia’s mining industry, which is the backbone of the Zambian economy. This is due to its impact on global supply chains, thereby dampening the demand of copper, Zambia’s major export.

Minister of Mines and Minerals Richard Musukwa has confirmed that the outbreak of COVID-19 in some countries across the world has negatively impacted commodity prices of all minerals on the market and affected Zambia’s copper mining Industry at large.

Speaking at a joint media briefing with the Ministry of Information and the Zambia Chamber of Mines – ZCM, the minister said in order to ensure the country’s mining industry survives, government in collaboration with key stakeholders in the mining sector will come up with interventions to ensure operations in the mines are sustained and peoples jobs are secured.

Musukwa disclosed that most inputs used in the mines, such as smelters, plants and spares parts are sourced from outside the country and the current situation of COVID-19 has made it difficult for materials to arrive on time hence affecting production.

He has since expressed optimism that going forward, the situation will stabilize with the measures to be put in place adding that the mining industry is too big to fail even in the current circumstances as it is a backbone of the country’s economy.

He added that the ministry has also spread awareness to employees in mines and has engaged the Chamber of Mines to take lead in combating the spread of COVID-19, alluding to the fact that mines have a robust health and safety departments across all operations hence the need to intensify surveillance to prevent the spread of the virus.

“We will also ensure there is public awareness in communities where mining takes place because we believe the infection rate can develop from the community and spread to the mines,” He said.

And the Zambia Chamber of Mines – ZCM president Talent Ngandwe expressed the chambers’ commitment in collaborating with government to provide measures that will control the spread of the virus and stabilize mining operations.

“We are all aware that international copper prices have been adversely affected and it is difficult for the mines to operate profitably when the commodity prices drop, hence, we will put in place measures that will avoid the further collapse of the industry and the economy as a whole,” He added.

According to spot cash prices on the London Metal Exchange, copper prices have dropped to about US$4,850 as at 20 March 2020, down from February spot prices of about US$5,750 per tone.