GOVERNMENT has started issuing licences to small-scale miners in Eastern Province to enable them mine gold legally, Ministry of Mines and Mineral Development Permanent Secretary Barnaby Mulenga has said. Mr Mulenga says the issuing of licences is meant to empower small-scale miners in Eastern Province, and also avoid exploitation of the recently discovered gold in the region
He said Government is also working with the Zambia Consolidated Copper MinesInvestment Holdings (ZCCM-IH) to set up trading hubs to give an opportunity to small-scale miners to sell gold to ZCCM-IH, which will in turn sell it to the Bank of Zambia. “ZCCM-IH is going to provide a ready market where small-scale miners will mine their gold and they will be given an opportunity to sell it to ZCCM-IH. This will ensure they are not exploited by unscrupulous business people,” he said. He said through the ZCCM-IH arrangement, the small-scale miners will get a fair return on their labour.
M r M u l e n g a a l s o s a i d Government is tightening the process of licensing because some people in Eastern Province have licences but do not use them. “There are some people who have licences for mines in Eastern Province but they are just holding them for speculative purposes, so the ministry is now cautioning them and asking them to start using the licences to mine gold and not just keep them for speculation,” he said. Mr Mulenga also encouraged people with licences, both Zambian and foreign investors, to open up large-scale mines because Government has keen interest in them. He said Government will provide a conducive environment for people to invest in gold mining, be it at small or large scale, and, therefore, people should take advantage of the opportunity.
Mr Mulenga said Government is looking to have more gold mines opened in the near future. He added that Zambians should be happy about the newly discovered gold deposits in Eastern Province as they will bring about a lot of job opportunities for the local people. Mr Mulenga also called for sustainable mining where people can mine gold safely without any loss of lives in the process. On February 21, Government announced that almost all the districts in Easte
MINES and Mineral Resources Minister Richard Musukwa has cautioned mining companies against under-declaring their production, saying doing so is an offence. And Musukwa has called on the Chamber of Mines to partner with the government, noting that it is not good for the chamber to always have a reason to complain about government policy. According to official Ministry of Mines data, Zambia’s total copper production last year dropped to an estimated 807,492 tonnes from 898,098 tonnes recorded in 2018, an over 90,000-tonne difference. The total copper production included all of the country’s 11 large scale mining operations as well as small-scale mining operations, which accounted for at least 23,382 metric tonnes from the total tonnage. In an interview, Musukwa noted that mines must always do the right thing as they sit on a resource that is meant to benefit the people of Zambia.
“The Chamber of Mines must be a partner, government wants to create a platform and a space in the mining operations where we promote dialogue because Zambia is open for business in the mining sector, we are open to dialogue. We are open to ensuring that the industry thrives and the chamber is a critical partner and what government is doing is to ensure that number one, production grows. By the way, it’s an offence for a mining house that has got a licence and is not operating according to the plan, the mine plan approved. The mine plan which we approve entails the number of resources and how it’s going to be mined,” he said. “So mine houses do not have a free space where they can just do anything they want, no. We have a mine plan which is approved by the ministry and they must follow. That mine plan acts as a trajectory of production and growth, that’s what we are referring to. If you have given a mine plan to government that this year you are going to produce so much and you are going in the negative, it’s an offence, they must do the correct things because they are sitting on a resource that is supposed to benefit the people of Zambia.”
And the minister said the government and the Chamber of Mines must meet midway as they both have a responsibility to protect the interests of those they represent.
“Now our colleagues the chamber, they need to appreciate that they cannot be all the time the only ones to be talking negativity. The whole year, we have spent arguing because of the sales tax, do you remember? Because we are a government of reason, we removed the sales tax, now they want to look for another reason. They always want to look for a space to point at. This time around, the chamber must encourage their members to produce. If there are red hot areas where there will be need to discuss, they must be in the forefront to say can we discuss the areas,” Musukwa added.
“I know that our colleagues are employed in the Chamber to protect the interests of the mine houses, the chamber is employed to protect the interest of the mine houses and government is employed by the people of Zambia to protect the interests of the people of Zambia, so we must meet midway. Every time, it is us who will be backtracking, no, it is their time to demonstrate that we are partners. In fact, this year, it is the Chamber’s time to demonstrate that they are true partners to government and that they can support the measures, if they have issues, we are open to dialogue and discussions so that we can make the industry thrive.”
He, however, noted that the major challenge that hampered production in 2019 was the breakdown in smelting facilities at KCM and Mopani.
“The challenge that we had in terms of production was related to breakdown in the smelting facilities at KCM and Mopani. These facilities have been worked on hoping that they will increase the processing capacity and we have three different mine entities that we are hoping will be able to ramp up this year and increase this production,” said Musukwa.
Gemfields (GEM) has returned to Aim more than two years after it exited London’s junior market, with the former Pallinghurst Resources (now just called Gemfields) adding a London listing to its presence in Johannesburg and Bermuda.
ZCCM IH Chief Executive Officer, Mabvuto Chipata concluded his dividend cheque presentation week at the headquarters of the Industrial Development Corporation (IDC) in Lusaka, Zambia by presenting the largest cheque by value of approximately K27.2 million to Chief Executive Officer Mateyo Kaluba, on Thursday 13th February 2020, after two others were presented to shareholders NAPSA and Ministry of Finance earlier in the week.
This was the third consecutive dividend payment presented to IDC and fourth for both NAPSA and the Ministry of Finance in the last 4 years. But while many focused on the size of the dividend, Financial Insight noted that CEO Chipata was gradually decoding the ZCCM IH strategy at each event systematically.
Minister of Finance with ZCCM IH CEO
Minister of Finance with ZCCM IH CEO
At the first presentation at the Ministry of Finance, following the reminder that the ZCCM IH group declared a profit-driven largely by an increase of 155% in revenue, the CEO announced his Group’s increasing stakes in Kariba Minerals and Copperbelt Energy Corporation in addition to new investments in companies such as Kabundi Resources that now sees them further their interests in manganese mining.
With the apparent risks in focusing on a singular global commodity, the CEO’s statement to fiscal on risk was a clear indicator of how ZCCM IH sought to position itself going forward. “We want to reduce our risk exposure on depending on copper, as well as drive portfolio growth in order to sustain the delivery of a fair return on investment for all our shareholders”, said the CEO when addressing the Minister of Finance, Dr. Bwalya Ngandu in his maiden attendance as the Minister in what is now becoming an annual event.
CEOs of ZCCM IH and NAPSA flanked by their respective management teams during the Dividend Chq presentation
CEOs of ZCCM IH and NAPSA flanked by their respective management teams during the Dividend Chq presentation
When the second cheque was delivered to the largest pension fund investor in the group, the CEO reminded the fund’s custodian that “they remain resolute in seeing that ZCCM-IH continues to be profitable, driven by the strategies they have devised in their 2018 to 2023 strategic plan”. These are words of comfort to the type of investor the CEO was speaking to who is critical about the time value of money as his legion of analysts apply their knowledge of investment hypothesis and return on investment for pensioners.
But comfort alone was not enough for the CEO. He also seeks sustainability for the pension funds invested in his group. “Our strategic plan is underpinned by a transformative investment agenda aimed at driving sustainable growth in the company for the benefit of all our stakeholders”. Transformative being the operative word as the market has now begun to see a ZCCM IH that is stepping outside its comfort zone and venturing into a diverse portfolio that also sees it investment in property.
With sustainability in mind, the group is ensuring that it follows all the laid down regulatory procedures in acquiring and implementing of brownfield projects. In reference to widening the group’s footprint in the mining sector by developing new product lines such as Manganese in Central Province, and Gold processing in Rufunsa, Mumbwa, and Mwinilunga, the CEO indicated that “all these projects are just waiting finalisation of statutory approvals, which we envisage should be concluded anytime soon”. The statutory approvals related to the Environmental Project Brief (EPB) and Environmental Impact Assessment (EIA) for the Mwinilunga Project from ZEMA and the Resettlement Action Plan (RAP) for the Manganese project in Rufunsa, according to sources close to the matter.
Saving the best for last! CEO Mabvuto Chipata Presents the 3rd and Final Dividend Cheque to CEO Mateyo Kaluba IDC
Saving the best for last! CEO Mabvuto Chipata Presents the 3rd and Final Dividend Cheque to CEO Mateyo Kaluba IDC
At the final presentation with IDC, from one investment expert to another, the CEO’s speech re-echoed the encouragement that IDC’s recognition, during last year’s IDC Group Annual event, of being voted and awarded the Enterprise with Highest Dividend Declared in the IDC Group for 2018 and 2019 financial years and Best Performer by Targets, having maintained profitability of the company operations in the year had a fundamental impact on the ZCCM IH team. Visiting the ZCCM IH Stand at the recently held Mining Indaba in Cape Town, South Africa from the 3rd to the 6th of February, one walked away with sense of the Group positioning itself as a global player when speaking to the Chief Financial Officer, Chilandu Josephine Sakala who indicated to the Founder of Financial Insight that “the Group was committed to its strategy”.
The CEO also reminded his principal of one of the strategic pillars of “increasing shareholder value through consistent dividend pay-outs and portfolio optimization” as being the foundation that underpins their investment strategy. This is why ZCCM IH has taken a stance towards investment that includes “holding significant controlling stakes in new investments and proactively participating in the management of new assets”.
With the presentation week done and dusted, the ZCCM IH team returns to its strategy desk to continue with the implementation of its 5-year strategic plan.
KALONDE NYATI, Lusaka
ZCCM-INVESTMENT Holding (IH) has in the last three years declared dividends amounting to K170 million to the Industrial Development Corporation (IDC) becoming a top performer under the group.
IDC Group chief executive officer Mateyo Kaluba has since urged ZCCM-IH to remain consistent and live up to the standard it has set for itself over the years.https://epaper.daily-mail.co.zm/
ZCCM-IH has handed over a total of 53 million dividends to majority shareholders that include Ministry of Finance, National Pensions Scheme Authority (NAPSA) and the Industrial Development Corporation.
Speaking during the handover ceremony of the dividend Cheque of approximately 7.9 million Kwacha to National Pensions Scheme Authority (NAPSA) in Lusaka, ZCCM-IH Chief Executive Officer Mavuto Chipata said the fourth dividend to the Authority is a fulfillment of one of the strategic pillars and a demonstration of the company’s commitment to its stakeholders for them to get a return on their investment.
Mr Chipata said ZCCM-IH remains resolute in ensuring that it continues to be profitable driven by devised in the 2018-2023.
“This fourth dividend cheque is a fulfillment of one of our strategic pillars, and today is a demonstration of our commitment to our shareholders, for them to get a return on their investment in ZCCM-IH” Mr Chipata said.
He explained that despite Copper remaining the mainstay commodity within the group, ZCCM-IH is widening it’s footprint in the mining sector by developing new products such as manganese in Central Province and gold processing in Rufunsa, Mumbwa and Mwinilunga.
And receiving the cheque (NAPSA) Director General Yollard Kachinda said the move by ZCCM-IH demonstrates the viability of NAPSA’s investments in various assets as guided by its investments guild lines.
“National Pensions Scheme Authority (NAPSA) has over 16, 000 pensioners on its payroll with a total pension payout in 2019 standing at over one billion Kwacha” Mr Kachinda said.
He adds that the cash flow ploughed back to turn the economic will of the country.
And speaking when he handed over a dividend cheque of approximately 27.2million Kwacha to the Industrial development Corporation (IDC), ZCCM-IH Chief Executive Officer Mabvuto Chipata said the Corporation’s strategic pillars are to increase shareholders value through consistent dividend pay-outs and portfolio optimization.
Mr Chipata mentioned that presentation of the Cheque presents the last Cheque to the majority shareholders from a total of 53 million Kwacha.
“One of our strategic pillars is to increase shareholder value through consistent dividend pay outs and portfolio optimization” Mr Chipata said.
He added that ZCCM-IH also has various minority shareholders both individual and institutional numbering over 3000, that are getting their fair share from the remaining 8.7 million Kwacha.
And receiving the Cheque, Industrial Development Corporation Group Chief Executive officer Mateyo Kaluba said the dividend received will be invested in green field projects and support to other companies in the group that are struggling.
Meanwhile speaking when he received a dividend cheque of K9.1 million Kwacha Finance Minister Dr Bwalya Ng’andu commended ZCCH-IH for being consistent in delivering returns to its shareholders for the past few years.
“I am particularly happy that ZCCM-IH has been consistent in delivering returns to its shareholders for the past few years with this dividend being the fourth pay out to be declared,” Dr. Ng’andu said.
He stated that as shareholders of 17.23% stake in the company, government notes that ZCCM-IH has continued to create value in its investments in order to sustain growth and maximum shareholder value.
“We believe that the formation of the ZCCM Gold Company Limited in which we own 49% shares as a Ministry, will see more proactive participation in the investments to be undertaken throughout the gold value chain in the country,” he stated.
Dr. Ng’andu urged other state owned companies to emulate ZCCM-IH adding that those whose performance is not satisfactory should pursue more aggressive reforms and strategies that will turn them to profitability and cease to be burden on the treasury.
MINISTER of Mines and Minerals Development Richard Musukwa has reiterated that there was no duty on processing minerals from the Democratic Republic of Congo.
H explained that what government introduced was a five per cent import duty on copper concentrates and ores coming from the DRC.
“Zambia has a total holding capacity of 1.1 million tonnes and the Zambian government is aware of the under-utilisation of the smelters in 2019,” Musukwa said during questions for oral answer in Parliament on Tuesday.
He said the utilisation of smelters at the mines in 2019 could not solemnly be attributed to the imposition of duty on the copper concentrates and ores.
“The smelters at Mopani and Konkola Copper Mines has a holding capacity of 527,000 tonnes per annum and were not fully operational in 2019. Smelters at Mopani Copper Mine was shut down due to a technical restructuring due failure. The smelter at KCM was also not operational in 2019 due to faults and logical maintenance which was long overdue causing the company to shut down its operations,” said Musukwa.
The year 2020 has begun on a positive note for the National Pension Scheme Authority (NAPSA) which yesterday received a dividend cheque worth K7.9 million from the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH), one of its investments on the Lusaka Securities Exchange.
Speaking when he received the cheque at NAPSA Head office, NAPSA Director General Mr. Yollard Kachinda said NAPSA was a key player in Zambia’s economy and in the provision of social security.
Mr. Kachinda noted that the Authority had a fiduciary responsibility to safeguard and grow members’ funds by engaging in viable investment projects as a business objective to make a return.
Mr. Kachinda further added that NAPSA’s primary objective was to provide long term income security to its members and their families.
“You may wish to know that currently the authority has over 16,000 pensioners on its payroll with a total pension payout in 2019 standing at over one billion kwacha. This is cash flow which is ploughed back to turn the economic wheels of the country,” he said.
Mr. Kachinda assured members of the scheme that NAPSA would protect their welfare and continue to work in their best interest by choosing investments that would bring meaningful returns for their benefits.
And presenting the cheque to NAPSA Director General, ZCCM-IH Chief Executive Officer, Mr. Mabvuto Chipata said ZCCM-IH remained resolute to see to it that the organisation continued to be profitable as devised in its strategic plan.
“Our strategic plan is underpinned by a transformative investment agenda aimed at driving sustainable growth in the company for the benefit of all our stakeholder,” said Mr. Chipata.
NAPSA is the second largest shareholder in ZCCM-IH with 15% shares after the government.
Provision of Security Services to ZCCM-IH as Follows: Lot 1 – Investments House, Kantanta Street, Kitwe; Technical Library and Mawe Complex in Kalulushi; and ZCCM-IH Residential Houses in Chingola (01) and Luanshya (01) Lot 2 – ZCCM-IH Office Park, Stand No. 16806, Alick Nkhata Road, Mass Media Area, Lusaka; 30B Kudu Road, Kabulonga, Lusaka; Plot No. 1852/M, 3rd Street, Ibex Hill, Lusaka and Village Villas in Roma Park, Lusaka Lot 3 – Kabwe Offices and Laboratory, Kabwe
National Pensions Scheme Authority (NAPSA) says it has the objective to provide long term income supply to its members.
NAPSA Director General Yollard Kachinda said that authority has the fiduciary responsibility to safeguard and grow the members by engaging in viable investment projects.
Mr. Kachinda said this during the handover of the dividend cheque worth K7.9 million from ZCCM-IH at NAPSA Headquaters in Lusaka today.
“The interests of workers contributing to NAPSA will always be at the center of every investment we make, thus we will always ensure that we invest and grow the fund in a transparent and prudent manner which will result in a financially sustainable scheme, ” he said.
Mr. Kachinda further disclosed that the authority currently has over 16, 000 pensioners on its payroll with a total payout standing at over K1 billion in 2019.
He further assured that the cash flow will be ploughed back to ‘turn the wheels of the economy’ through paying the securities to pensioners.
Meanwhile, ZCCM-IH Chief Executive Officer Mabvuto Chipata opened up on NAPSA’s investment in the company.
“NAPSA is one of our key shareholders with a 15 percent stake in ZCCM-IH. This fourth dividend cheque is a fulfilment of one of our strategic pillars and it demonstrates our commitment to our strategic shareholders, for them to get a return on their investment,” Mr. Phiri added.
He further said: “Our strategic plan is underpinning by a transformative investment agenda aimed at driving sustainable growth in the company for the benefit of all our stakeholders.”
The ZCCM-IH boss remains positive about the future outlook of the company.
ZCCM-IH has paid a divided total sum of K55, 833, 959. 26 from profits to NASPA since 2014.
