Non-Performing State Owned Enterprises Warned

Finance Minister Bwalya Ng’andu says all state-owned enterprises that fail to perform will face sanctions by government.

Dr Ng’andu says government investments in state-owned enterprises are aimed at getting a reasonable return to allow the country raise finances to meet other developmental objectives but only a few companies have been fulfilling their financial obligations to government.

The Minister was speaking this morning when he received a dividend Cheque of K9.1 million from the Zambia Consolidated

Copper Mines Investments Holdings-ZCCM-IH for the financial year ended 31st march 2019.

At the same event, ZCCM-IH- Chief Executive Officer Mabvuto Chipata said in the last general meeting held this year, the firm approved a total dividend payout of K53 million from the total profit of K448 million.

Mr. Chipata said in the 2019 financial year, the company increased stakes in Kariba Minerals and Copperbelt Energy Corporation and invested in new companies such as Kabundi Resources.

Source: Radio Phoenix

Ng’andu asks ZCCM-IH to take centre stage in mining sector

FINANCE minister Bwalya Ng’andu says government has shares in too many companies which do not pay out dividends to shareholders.

And ZCCM-IH chief executive officer Mabvuto Chipata says his company has held on to some of the profits made to invest in new projects.

Speaking when ZCCM-IH handed the ministry their fourth cheque for the year ended march 2019, Dr Ng’andu said the government was looking to all companies to start declaring dividends to the treasury.

“It is delightful to receive a dividend cheque from ZCCM-IH this morning and more importantly this marks the fourth year in which the company has continued to pay dividends,” he said.

“This occasion this morning is an occasion which is meant to send a message to all companies within the IDC group of companies to which government has shares in because there should be no too much hullabaloo about receiving dividends from a company because that is what companies do. They are supposed to pay dividends to the shareholders in the normal course of their operations.”

Dr Ng’andu added that, “The fact that we are making so much issue out of this payment simply indicates one thing which is that there are far too many companies within the IDC group of companies in which government has shares which are not paying their dividends.”

He asked companies which did not remit dividends to do so as government wanted returns on its’ investments.

“I want this to go out as a message to all of them that we expect this to be the case. The reason government invests resources in companies is for the companies to ensure that there is an adequate return on investments,” he said.

“Moving forward, we want ZCCM-IH to take a centre stage within the mining area, currently ZCCM-IH invests in a number of mining companies but it’s more of a passive investment but we want the company to go beyond passive investment…we want to see increased participation of the company in the mining sector, in other strategic minerals and taking a centre stage, a more active role.”

Dr Ng’andu said he had tasked ZCCM-IH to help the government make profit from the gold deposits around the country.

“ZCCM-IH has been identified as the anchor company to drive the national gold agenda. We remain optimistic that it will play a critical role in harnessing the gold potential for the benefit of this country. We believe the formation of ZCCM-IH Gold Company Limited in which the government owns 49 per cent of the shares through the Ministry of Finance will see more proactive participation in the investments to be undertaken throughout the gold value chain in the country,” he said.

“Government through the Bank of Zambia has identified the purchase of gold as one of the mechanism to enhance the country’s international reserves apart from the other measures the central bank undertakes to replenish and raise its resources.”

He said he was informed that there were about 21 gold occurrence areas around the country that are to be exploited.

“As a ministry, we will give all the necessary support to the endeavours of ZCCM-IH Gold Company Limited in harnessing the gold potential in the country,” Dr Ng’andu pledged.

He said it was important that state owned companies especially those whose performance was not satisfactory pursue more aggressive reforms and strategies that would turn them to profitability and cease to be a burden on the treasury.

And Chipata said ZCCM-IH had put aside some money to invest in new projects for this financial year.

“Dividends are declared out of profits and if you see between the last financial year and this financial year, the previous year we had a profit of K800,000,000 as a group, this time around we had K448,000,000 but more so, we are looking at new projects,” he said.

“So we have to leave some cash to invest in new projects so in addition to profitability, what determines the amount that you are going to distribute to shareholders, you have to look at the future projects so we have had to leave some cash within the company to invest in new projects with the belief that we have to increase the dividend distribution going forward.”

The government owns 17.3 per cent shares in ZCCM-IH and for the last financial year a cheque worth over K16.8 million was presented to the Ministry of Finance.

Source: The Mast

Remarks by Chief Executive Officer – ZCCM-IH During the Dividend Cheque Handover for Financial Year ended 31st March 2019 To the National Pension Scheme Authority

I am happy to be here to present this dividend cheque to the National Pension Scheme Authority, of approximately K7.9 million.

NAPSA is one of our key shareholders with a 15% stake in ZCCM-IH.

This fourth dividend cheque is a fulfillment of one of our strategic pillars, and today, this is a demonstration of our commitment to our shareholders, for them to get a return on their investment in ZCCM-IH.

We remain resolute in seeing that ZCCM-IH continues to be profitable, driven by the strategies we have devised in our 2018 to 2023 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 stakeholders.

Mr. Chipata delivers the second cheque this week to NAPSA

Ladies and gentlemen, even though Copper remains the mainstay commodity within our Group, we are widening our footprint in the mining sector by developing new product lines such as Manganese in Central Province, and Gold processing in Rufunsa, Mumbwa, and Mwinilunga.

All these projects are just waiting finalisation of statutory approvals, which we envisage should be concluded anytime soon.

We are focused on generating consistent and predictable income through investments in brownfield and Greenfield projects while ensuring and maximizing value for our shareholders.

We remain positive about the future outlook of the Company, as we continue to create value and sustainable growth in line with our strategic plan activities.

Thank you all for listening.

Source: Financial Insight Zambia

ZCCM-IH declares K9 million dividend

ZCCM-INVESTMENT Holdings (IH) has declared a dividend of K9.1 million to Government with Minister of Finance Bwalya Ng’andu calling on other companies under the Industrial Development Corporation (IDC) Group to pursue more aggressive reforms to enable them cease being a burden on the treasury.
Despite ZCCM-IH reducing its dividend to Government by over K14 million from the K23.3 declared in the 2018 financial year, the company has remained consistent, making the payment yesterday, the fourth in four years.
Dr Ng’andu said state-owned enterprises, particularly those whose performance is not satisfactory, should pursue aggressive reforms and strategies that will turn them to profitability.
During the 2018 financial year, only ZCCM-IH, Zambia National Building Society, Zambia Airports Corporation Limited, Tazama and CLICK TO READ MORE

Source: Zambia Daily Mail 

MOF Receives K9.1M Dividends from ZCCM-IH

Minister of Finance, Bwalya Ng’andu has warned companies that perpetually fail to declare dividends that they risk being closed.

Dr Ng’andu says companies’ position of loss making and not creating value and turning to the treasury for additional financing cannot continue as they were not created for the purpose of becoming a perpetual drainer of resources from the treasury.

The Minister was speaking when he received a cheque dividend of K9.1 million for the financial year ended 31st March 2019 from the Zambia Consolidated Copper Mine -Investment Holdings Plc (ZCCM-IH) in Lusaka today.

Dr Ng’andu commended ZCCM-IH for its efforts and hard work in keeping the company on a profitable trajectory as it has made it possible to contribute to the treasury through both tax and non-tax revenues.

The Finance Minister said this is important during this time when the country is facing a constrained fiscal space.

He said he is aware that ZCCM-IH has continued to make selected strategic investments which will undoubtedly contribute to job creation and sustainable economic growth.

Dr Ng’andu stated that the company through Kabundu Resources Limited is expected to commence production of manganese in Serenje District before the end of June 2020.

He added that the company through Consolidated Gold Company will also commence gold processing in Rufunsa District before the end of June this year.

Dr Ng’andu noted that with gold being declared a strategic mineral by government, and ZCCM-IH identified as the anchor company to drive the national gold agenda, government remains optimistic that it will play a critical role in harnessing the gold potential in the country.

He further said government through the Bank of Zambia has identified purchase of gold as one of the mechanisms to enhance the country’s international reserves.

“I am informed that there are about 21 known gold occurrence areas around the country that are yet to be exploited,” he said.

He said government will support all endeavors by the ZCCM Gold Company in harnessing the gold potential in the country.

Speaking at the same event, ZCCM-IH Chief Executive Officer, Mabvuto Chipata said ZCCM-IH shareholders approved a total dividend payout of K53 million in the last Annual General meeting.

Mr Chipata stated that as a group, ZCCM-IH made a profit of K448 million which was largely driven by an increase of 155 percent in revenue.

ZCCM IH In K53M Dividend Pay Out

ZCCM IH has recorded a profit of 448 million Kwacha of which 53 Million Kwacha has been approved for dividend payout to shareholders.

ZCCM IH Chief Executive Officer Mabvuto Chipata says in the 2019 financial year the company increased stakes in Kariba Minerals and Copperbelt Energy Corporation and also invested in new companies.

Mr Chipata says the company will continue to play a strategic role in the growth of the mining sector adding that that is where the strength lies.

He, however, says the company will reduce risk on exposure on Copper dependence to other minerals such as Gold, Cobalt , Manganese and Gemstones.

Mr Chipata said this when he handed over a dividend cheque of 9.1 Million Kwacha to Minister of Finance, Bwalya N’gandu.

And Speaking shortly after receiving the Cheque, Mr N’gandu said the payout of dividends by the ZCCM IH should send a message to other state owned companies.

Mr N’gandu urged the ZCCM Gold company to be proactive in the sector by increasing there participation so that it continues to create value for its investments in order to sustain its growth and maximize shareholder value .

He disclosed that Government has 49 percent shares in the formation of ZCCM Gold company limited and that through the Bank of Zambia has identified purchase of gold as a mechanism to enhance the country’s international reserves.

Mr N’gandu further noted that country has about 21 known Gold occurrence areas around the country that are yet to exploited.

And Mr N’gandu further urged state owned companies to pursue aggressive reforms and strategies that will enable them to make profits and cease to be a burden on the treasury.

MINISTRY OF FINANCE TO SUPPORT ZCCM-IH IN GOLD MINING STRATEGY

Minister of Finance Dr. Bwalya Ng’andu says his ministry will remain optimistic that ZCCM-IH will play a critical role in harnessing the gold potential for the benefit of the country.

Speaking during the Dividend Cheque Handover at the Ministry of Finance Headquarters, Dr Ng’andu said the formation of the ZCCM Gold Company Limited will see more proactive participation in the investments to be undertaken throughout the gold value chain in the country.

He added that Government, through the Bank of Zambia has identified purchase of gold as one of the mechanisms to enhance the country’s international reserves.

“It is envisaged that with ZCCM-IH’s investment in this sub sector, we should be able to achieve this objective. I am informed that there are obout 21 known gold occurrence areas around the country that are yet to be exploited,” Dr Ng’andu said.

“As a Ministry and shareholder, we will give all the necessary support to the endeavours of the ZCCM Gold Company in harnessing the gold potential in the Country,” Dr Ng’andu said.

The Minister observed that being a shareholder of 17.23% stake in the company, ZCCM-IH has continued to create value in its investments, in order to sustain its growth and maximize shareholder value.

The Minister is happy that ZCCM-IH has been consistent in delivering returns to its shareholders for the past few years.

He commended the company for its efforts and hard work in keeping the Company on a profitable trajectory thereby making it possible for the company to contribute to the treasury through both and non-tax revenues.

“I am aware that ZCCM-IH has continued to make selected strategic investments which will undoubtedly contribute to job creation and sustained economic growth. The company, through Kabundu Resources Limited is expected to commence production of manganese in Serenje District, Central province before the end of June, 2020. ZCCM-IH, through consolidated Gold will begin gold processing in Rufunsa District before the end of June, 2020,” he said.

The Minister implored other state owned companies to emulate ZCCM-IH.

He said it is important that state owned companies, especially those whose performance is not satisfactory, pursue more aggressive reforms and strategies that will turn them to profitability and cease to be burden on the treasury.

He assured them that Government will remain supportive of such reforms.

At the same event, ZCCM-IH Chief Executive Officer Mabvuto Chipata said the company remains focused on continuing to create value and portfolio growth.

“We will continue to play strategic role in the growth of this sector and its contribution to the country’s revenue particularly in other Minerals such as gold cobalt, manganese and gemstones among others,” said Mr. Chipata.

He said the company wants to reduce its 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 its shareholders.

In the last Annual General meeting ZCCM-IH shareholders approved a total  dividend payout of K53million.

The Company made a profit of K448 million which was largely driven by an increase of 155% in revenue.

In 2019 alone the company increased stakes in Kariba minerals and Copperbelt Cooperation.

Source: Tech Watch News

Remarks By Mr. Mabvuto Chipata, Chief Executive Officer – ZCCM-IH During the Dividend Cheque Handover to Ministry of Finance

The Honourable Minister of Finance, Dr. Bwalya Ng’andu, Ministry of Finance Directors and senior staff present, ZCCM-IH senior management and staff, Members of the Press,

Good morning!

I am happy to be here to present the fourth dividend cheque to the Ministry of Finance for the financial year ended 31st March 2019.

In the last Annual General Meeting held on 14th January 2020, ZCCM-IH shareholders approved a total dividend payout of K53 million.

As a Group, we made a profit of K448 million, which was largely driven by an increase of 155% in revenue.

As a Company, we remain focused on continuing to create value and portfolio growth.

In the 2019 financial year, for instance, we increased our stakes in Kariba Minerals and Copperbelt Energy Corporation; and invested in new companies such as Kabundi Resources that is responsible for manganese mining.

Honourable Minister, our core strength lies in the mining sector, as such we will continue to play a strategic role in the growth of this sector and its contribution to the country’s revenue, particularly in other minerals such as gold, cobalt, manganese, and gemstones among others.

Copper remains the main commodity in our investment portfolio, as such commodity diversification is key for us as a company.

We want to reduce our risk exposure 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.

Honourable Minister, we remain grateful for the support you continue to give to ZCCM-IH through your Ministry over the years.

ZCCM-IH will continue to play a pivotal role in the mining sector for which the ZCCM-IH brand is deeply associated.

Thank you once again for having us here to present the dividend.

Mining minister calls on investors to employ Zambia’s resources

The article was first published on https://www.iol.co.za and has been republished with the permission of the author

Zambian Mines Minister Richard Musukwa on Wednesday wooed investors at the Investing In African Mining Indaba to take advantage of the country’s resource potential despite the government’s provisional liquidation of the Konkola Copper Mines (KCM) for failure to pay dividends. KCM, which is 20.6 percent owned by state-owned Zambian Consolidated Copper Mines (ZCCM) and 79.4 percent owned by Vedanta Resources, is at the centre of an ongoing litigation battle by the London-headquartered company to regain it.

Musukwa said Zambia remained a stable investment destination for serious investors. “Serious investors need to consider Zambia as an opportune destination. With Vedanta, Zambia is dealing with an investor that broke the law,” said Musukwa.

“Zambia is a victim and it needs support. Vedanta Resources pledged to put in $300 million (R4.44 billion) they further pledged $500m and another $250m they did not bring that money. What do you

Musukwa said that Zambia was one of the top 10 best performers in Africa as rated by the World Banks’ 2020 Ease of Doing Business Report.

Last May, ZCCM filed a petition in the High Court of Zambia to wind up KCM on “just and equitable” grounds. ZCCM also obtained an ex parte order from the High Court of Zambia, appointing a provisional liquidator of KCM pending the hearing of the petition.

Since all the significant decision-making powers, including carrying on the business of KCM and taking control over all the assets of KCM, rests with the Provisional Liquidator, Vedanta previously said that it believed that the appointment of the Provisional Liquidator had caused a loss of its control over KCM.

The company deconsolidated KCM last May.

Musukwa said that Zambia was a host to investors from Canada, Australia, India and China. “You are welcome to Zambia if you follow the law,” he said, adding that the company broke the law.

“When we give you a mining license, we give you the conditions of the grant. If the conditions of the grant are broken, because we are Africans we must watch you break the law? We deserve African and international support to ensure that Vedanta Resources pays the price. The failure of Vedanta Resources to operationalise its mine plan is criminal.”

Source: Financial Insight Zambia

Africa: A Tale of Two Indabas – Cape Town’s Parallel Mining Conferences and ‘The New Scramble for Africa’

PRESS RELEASE

In Cape Town this week, two very different conferences on the mining sector have been taking place. The annual African Mining Indaba (industry indaba) brings together the global mining industry and African governments to showcase the types of investment opportunities that make extraction and trade in minerals a billion dollar industry. Across town, the Alternative Mining Indaba (AMI), which was set up due the historical exclusion of civil society from the main conference, reveals the often catastrophic human and environmental impacts of the mining industry.

Two sides of the mining story

The division between the two events underscores two sides of the mining sector and the operational opacity which its corporate contingent often strives to maintain. Community activists at AMI catalogue some of the devastating consequences of mining on the lives of their communities. For example, accounts of children suffering painful skin conditions linked to polluted water sources or of the violence meted out by private and state security forces in mining areas are commonplace. Meanwhile, champagne sits on ice ahead of the lavish parties thrown around town after a frenetic day of wheeling and dealing at the industry indaba. To witness the harrowing human stories shared at AMI side by side with the extravagance of a mining industry evening soiree makes for a deeply uncomfortable and shameful contrast.

This year, alongside topics such as the ‘investment battlefield’ and ‘business matchmaking’, ‘sustainable development’ has been added to the industry mining indaba’s packed agenda. Slots on responsible business at the conference could be read as a step in the right direction, as could yesterday’s statement of solidarity with the AMI by industry stakeholders. But these are meagre offerings on a topic which should be at the forefront of the mining industry’s activities. While paying lip service to protecting human rights and the environment, industry still largely excludes civil society and affected communities from the conversation.

A glance at the mining news stories that have hit the headlines over the past year indicates why the industry must take the concerns of affected communities a lot more seriously.

Access roads leads to the deep open pit mine at the Nchanga copper mine, operated by Konkola Copper Mines Plc, in Chingola, Zambia, 2016. Waldo Swiegers/Bloomberg via Getty Images

Signs of a new era for corporate accountability?

A more global spotlight has been shone on the dark underbelly of the mining industry over the past year. Recent stories about charges and court cases linked to corporate accountability for serious harms experienced by communities affected by mining have featured some of the industry indaba’s major players.

Vedanta, a sponsor of this year’s industry indaba, hit the headlines in 2019 when the UK Supreme Court ruled that 1826 Zambian villagers could sue Vedanta and its Zambian subsidiary Konkola Copper Mines (KCM) in the UK over alleged damage to their land and water from copper mining effluent, and claims that this effected their health, causing illnesses and permanent injuries. The decision was a landmark for the legal treatment of parent-subsidiary relationships in UK law. This could have wide-ranging implications for the understanding of corporate accountability for parent companies, ultimately leading, one might hope, to greater care to respect human rights and mitigate risks of harm.

Another regular indaba attendee, international mining giant Vale, made the news after the collapse of a tailings dam in Brumadinho, in the Brazilian state of Minas Gerais, killed 250 people in January 2019. Video footage of collapse unfolding revealed the shocking scale of the destruction. Last month it was announced that Brazilian prosecutors have filed charges against 16 people, including murder charges, in relation to the disaster. The individuals charged include the former CEO of Vale. While impunity for harms is a trend that has long been associated with the mining industry, in this case at least, it may not be a story of business as usual for those responsible.

Malvina Firmino Nunes, who lost her son in the January 2019 Brumadinho dam collapse, holds a portrait of him, almost one year on from the disaster. Douglas Magno/AFP via Getty Images

These stories, and many more that have garnered less attention, illustrate the devastation that can be wrought by the mining industry. It is perhaps not surprising that discussion of human rights and environmental protections at the civil society-led AMI focus not only on how mining can be carried out more responsibly, but whether it should be carried out at all. The extraction, trade and transport of minerals has long been recognised as a business linked to serious risks along the supply and value chain. It is often the poorest and most vulnerable that bear the brunt of harm, a world away from the luxurious industry-sponsored parties in Cape Town tonight.

The race for clean energy minerals

The increasing drive for minerals used in renewable energy is a hot topic at the industry indaba this year. As part pf the transition to a low-carbon economy, the OECD has predicted that by 2060 global metal use will more than double.

The race for clean tech minerals has been described–ominously–as ‘the new scramble for Africa’, as companies compete for the minerals that will fuel the technology of the future. Already the risks associated with cobalt, one of the propellers of the clean tech revolution, have come under the spotlight, through links to child labour in the Democratic Republic of Congo (DRC). It would be a gross contradiction if the drive for more sustainable energy is fuelled by human rights and environmental abuses in producer countries.

Global Witness has long investigated and exposed links between minerals and human rights abuse, environmental destruction and corruption in African countries including DRC, Republic of Congo, Zimbabwe and Angola, and across the globe.

Responsible business is about how companies do business, through the policies and practices they adopt to prevent human rights and environmental harms linked to their business. International guidelines for responsible mineral sourcing of minerals have been in place for years. But the industry’s dire track record is testament to its ongoing failure to put responsible conduct at the heart of its operations, and above the pursuit of profit.

Without a systemic shift, any gains made in the battle against climate change will come with significant human and environmental cost. Meaningful inclusion of those directly affected by the unacceptable face of the mining industry is a fundamental first step. AMI takes place just a few kilometres away from the industry indaba at Cape Town Convention Centre, yet it feels like an ocean apart. A sea-change is long overdue.