By Sharon Kunda

ZCCM Investment Holdings PLC says positive results have been obtained from preliminary mineral exploration activities in the Kasenseli area in Mwinilunga District.

ZCCM-IH Chief Executive Officer, Mabvuto Chipata says the Company is in the process of obtaining necessary Statutory approvals before it proceeds to detailed exploration to delineate the resource and subsequently mine development.

Mr. Chipata says the processes are expected to be finalised in the next two months and that mine development will start thereafter.

He has explained that ZCCM-IH is considering rolling out exploration in targeted areas across the country where gold occurrence has been recorded.

And Mr. Chipata says ZCCM-IH has started buying gold from artisanal and small-scale gold miners as one of the steps towards the formalisation of gold mining and trading activities.

He says the company has started purchasing gold in Rufunsa but that efforts were temporarily halted due to the fragile security situation the past few weeks.

Mr. Chipata said this during a laboratory media tour in Lusaka today and press briefing on the gold project in Rufunsa.

The tour was meant to showcase progress made on the Rufunsa project where ZCCM-IH had partnered with KARMA Mining Services and Rural Development.

Mr. Chipata said ZCCM-IH and Karma Mining services and rural development have entered a joint venture through the incorporation of consolidated Gold Company of Zambia Limited.

And Consolidated Gold Company Limited Chief Executive Officer, FAISAL KEER said the company has so far invested about 2 hundred and 50 thousand United States dollars in setting up the laboratory that will be able to process about 30 samples per day.

Source: ZNBC

Zambia’s mining investment firm ZCCM Investment Holdings has announced that it has started buying gold from artisanal and small-scale miners across the country in what is seen as a follow up move to formalize gold mining and trading that has been happening in some parts of the country.

In an advisement circulated on March 6, 2019, ZCCM – IH is providing an open market and competitive prices for the gold hence gold sellers across the country are encouraged to take their gold to the firm for sale, but no further details have been availed.

ZCCM-IH had last year in December announced that it would set up centers for buying gold in strategic areas with deposits as a first step towards bringing artisanal and small-scale miners into the formal market.

When the Zambian Business Times – ZBT reached out to the mining investment firm, its Public Relations Manager Loisa Kakoma stated that the company is planning to hold a press briefing on the matter during this week where they will share more details on how the whole operation will be carried out.

ZCCM-IH buying of gold has also been linked to the central bank (Bank of Zambia – BOZ) which had in December 2019 announced that it is in the process of resuming the buying of gold to serve as an alternative to forex reserves.

The Bank governor Dr. Denny Kalyalya told ZBT in an exclusive interview back then that the move is a way of diversifying from the risk of only relying on holding of the US dollar reserves which is currently the main forex reserve held.

The BOZ governor however did not disclose the target value of gold reserves to bought and stock piled in 2020 stating that discussions with suppliers and modalities are still underway.

According to a research done by ZBT, gold reserves would complement the current US dollar held reserves which are now mostly generated from minerals royalties levied on copper exports. Gold reserves would become more efficient to stock pile as they would be bought using local currency with the country leveraging the current mining at existing large scale copper and gold mines at Kansanshi and Lumwana.

Other areas reported to have notable gold deposits are Mwinilunga in the North Western Province, Mumbwa and Luano in Central province, Rufunsa and Luangwa in Lusaka province and Petauke in the Eastern Province.

Government has indicated that Zambia aims to produce 40,000kg of gold in 2020 alone from primary and secondary sources including artisanal and small-scale miners.

Source: Zambia Business Times

On Friday, the 6th of March 2020, Zambia’s two-decade old mining company, ZCCM Investments Holdings, 77.7 per cent owned by the Zambian Government, had issued a statement saying that the Zambia’s investment wing had begun to purchase gold from unofficial traders or miners alongside small-scale unregulated miners aimed at formalizing the largely unregulated sector, demand of which has inflated by many folds over the recent past in line with a soaring gold futures’ prices reigning near their nearly seven-year peak.

In point of fact, latest announcement from ZCCM came against a chaotic backdrop in the informal gold mining industry in Africa, while a number of Government across the African continent had been scuffling to deal with unofficial mining of golds, which has also been triggering a number of tormenting issues such as a significant level of environmental risk and health hazards to the miners alongside an en masse flow of illicit money that has been curbing out critical revenues of the nations after having smuggled for sales.

Meanwhile, as Ethiopian artisanal gold buying market has been purchasing the precious metal at a higher price than the markets are offering to lure miners away from black markets, adding that the artisanal gold miners could bring in illegal or unofficially mined gold in to its Lusaka office, ZCCM-IH said in an advertisement on Friday (March 6th), “ZCCM-IH is providing an open market and competitive prices for gold. Looking forward to doing business with you! It is cash on delivery, spread the word! ”

Source: Financial Word

Angola’s new diamond trading policy generated an average annual growth of gross revenue of about 8.5% in the past two years.

According to a media statement issued by Sodiam – the National Diamond Trading Company of Angola-, while in the 2016-2017 period gross revenue grew by 2.3%, in 2017-2018 it grew 10.8%, totalling $1.22 billion, and in 2018-2019 it grew by 6.2%, totalling $1.29 billion.

The positive results follow a 2018 decree that eliminated the figure of ‘preferred customer’ and implemented new ways of selling diamonds.

Before, preferential customers who were chosen by the head of state were the only ones who could buy diamonds from Sodiam at discounted prices and within specific quotas. This led to monopoly practices and corruption.

“In this period from 2012 to 2017, eight companies operated exclusively in Angola, under the status of preferential customer, and from 2013 to 2017, the companies Iaxon, Relactant and Odyssey, together, acquired more than 50% of the diamond production,” the media brief states.

To put a halt on such practices, the 2018 decree proposed a new sale modality that involves contracts or sights, auctions/tenders and spot. To take part in this, Sodiam clients register online on the state company’s website and undergo financial and security checks.

The base sales reference price is defined through an agreement between the producer, Sodiam and an independent evaluator. The purchase is only effective if its offer is equal to or higher than the base sales reference price.

According to the National Diamond Trading Company of Angola, besides the rise in revenues, the new set of measures has sparked interest with more than 120 companies registered in Sodiam’s customer portfolio and three new polishing factories opened in the country.

Source: Mining.Com

In the first week of March 2020 trading on the LuSE, we see hope for the equities market as it was not completely dominated by the Bond market. Opening the market with a score of 98% to 2% as compared to week one of February with the bond market which scored 100% of sales.

 Equity Market Update

In the week ended 06th March 2020, a total of 5,087,040 shares were transacted in 67 trades, yielding a market turnover of K4,360,121. Trading activity was recorded in AIRTEL, COPPERBELT ENERGY CORPORATION, LAFARGE, STANDARD CHARTERED BANK LIMITED, ZAMBEEF, ZANACO and ZAMBIA SUGAR.

During the week, the company with the highest Market Capitalisation on the LuSE was AIRTEL which also had a high Price to Earnings ratio signaling continued overvaluation of the telecoms company

However, of the traded companies during the week, ZAMBEEF had the highest earnings per share despite having one of the lowest share prices.

The LASI closed the first week at 4260.56, which was a point higher than the previous week (last Friday of February) which was at 4250.48.

The LuSE All Share Index (LASI) closed at 4,260.56 points. The market closed on a capitalization of K57,363,640,096 including Shoprite Holdings and K23,124,434,116 excluding Shoprite Holdings.

The equities market opened on a low as compared to the first week of February, which recorded a total of 51,550,940 shares transacted in 109 trades, yielding a market turnover of K32,059,252.

Bond Market Update 6^th March 2020

During the week, bonds of a total face value of K487,260,000 were transacted in 13 trades, yielding a market value sales of K242,792,000. Sales in the opening week of March were almost 10 times stronger than the previous week which positions the current month well should sales continue to be strong in comparison to the dipped performance of February 2020.

Important announcements                           

PUMA ENERGY ZAMBIA PLC

Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Puma Energy Zambia Plc (“the Board”) wishes to announce the resignation of Mr Sidy Bane as Director of the Board effective 28 February 2020. Furthermore, the Board would like to announce the appointment of Mr Mike Baker and Mr Patricio Chababo as Directors of the Board effective 2 March 2020.

ZAMBIAN BREWERIES PLC

The Board of Directors of Zambian Breweries Plc (“the Board”) wishes to advise Shareholders that for the period ended 31st December 2019, the earnings per share is expected to be 81% lower than that of the corresponding period last year for the Company. Earnings for the same period based on profit from continuing operations and adjusted for once-off are expected to be 27% higher.

ZAMBIAN BREWERIES PLC

NOTICE IS HEREBY GIVEN that the 26th Annual General Meeting (AGM) of the members of Zambian Breweries. Plc will be held at the Southern Sun Ridgeway Hotel, Lusaka, Zambia, on Thursday, 26th March 2020, commencing at 09:00 hours, for purposes of transacting the following business:

STANDARD CHARTERED BANK ZAMBIA PLC

In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Standard Chartered Bank Zambia PLC (“the Bank”) hereby advises the Shareholders of the Company that the Earnings per Share for the financial year ended 31 December 2019 is approximately 95% lower than for the financial year ended 31 December 2018.

Source: 

LUSAKA, March 6 (Reuters) – Zambia’s mining investment arm ZCCM-IH has started buying gold from artisanal and small-scale miners in a bid to formalise the unregulated sector whose ranks have swelled worldwide as gold prices soar, it said on Friday.

Governments across Africa are scrambling to tackle informal mining of gold, which has significant health and environmental risks and contributes to illicit flows of money, depriving states of revenue when the metal is smuggled across borders.

Ethiopia, for example, runs artisanal gold buying centres which offer a higher price than the going market rate to attract miners away from the black market.

“ZCCM-IH is providing an open market and competitive prices for gold,” an advertisement by the company read, adding that gold sellers could bring the gold to its Lusaka offices.

LUSAKA (Reuters) – Zambia’s mining investment arm ZCCM-IH has started buying gold from artisanal and small-scale miners in a bid to formalise the unregulated sector whose ranks have swelled worldwide as gold prices soar, it said on Friday.

Governments across Africa are scrambling to tackle informal mining of gold, which has significant health and environmental risks and contributes to illicit flows of money, depriving states of revenue when the metal is smuggled across borders.

Ethiopia, for example, runs artisanal gold buying centres which offer a higher price than the going market rate to attract miners away from the black market.

“ZCCM-IH is providing an open market and competitive prices for gold,” an advertisement by the company read, adding that gold sellers could bring the gold to its Lusaka offices.

“Looking forward to doing business with you!” the advertisement, circulated on WhatsApp, read. “It is cash on delivery, spread the word!”

ZCCM-IH did not immediately reply to Reuters’ query about the price the buying centres would be offering miners.

The firm announced in December it would set up centres for buying gold in strategic areas with deposits as a first step towards bringing artisanal and small-scale miners into the formal market.

The buying centres also fit into Zambia’s strategy of boosting revenue from its mineral resources.

A Reuters analysis found last year that billions of dollars’ worth of gold is smuggled out of Africa every year through the Middle East. Previous reports have highlighted a black-market trade in gold, mined with little official oversight.

Artisanal miners in Zambia are meant to secure mining rights from the government by submitting relevant paperwork, paying fees and completing an environmental commitment plan.

The state investment company is also proposing to provide technical expertise to artisanal miners on mine planning and safety, and to give them access to earth-moving machinery and processing plants.

Zambia aims to produce 40,000 kg of gold in 2020 from primary and secondary sources, including artisanal and small-scale miners, according to Mines Permanent Secretary Barnaby Mulenga.

As the state seeks to benefit more from large-scale mining too, Mulenga in December said the government plans to make copper mining companies account for the gold they produce as a by-product of the mining process.

First Quantum Minerals’ <FM.TO> Kansanshi Mine, the only mine that has been declaring its gold production, produced 4,200 kg of gold in 2018.

Source: Reuters

The Prospectors & Developers Association of Canada’s (PDAC) 2020 Convention—the world’s premier mineral exploration and mining event—will commence this weekend in Toronto, marking its 88th year.

Every year the PDAC Convention injects upwards of $70 million into the local Toronto economy.

“The PDAC Convention is the one event the world’s mineral exploration and mining industry cannot afford to miss, and 2020 will be my 32nd consecutive year attending” says PDAC President Felix Lee. “It is an opportunity for industry professionals to gather and best position themselves and their companies for the year ahead.”

Source: Mining Reviews

Zambia’s main emerald miner raked in 11.5 million U.S. dollars from an auction of mainly commercial quality emerald, the company said on Thursday.

Kagem Mining, which is situation in Zambia’s Lufwanyama town on the Copperbelt Province, earned the money during the auction held between February 18 to 21 in Lusaka, the country’s capital.

In a statement, the company said of the 25 lots offered, 19 were sold which also saw 29 companies participating.

The emerald miner has generated 647 million dollars in total revenues out of 35 auctions it has conducted since July 2009.

The company is 75 percent owned by Gemfields of the United Kingdom, with the Zambian government owning the other 25 percent. Enditem

source: Ghana News