ZCCM-IH

Corporate Social Investment, ZCCM-IH News

ZCCM-IH Hands Over Water Borehole to Atlas and Surrounding Villages in Nyimba District

As part of its ongoing ‘Clean Water for Zambia’ Corporate Social Investment (CSI) campaign, ZCCM-IH handed over a water borehole to Atlas Village, in Eastern Province, in Chief Ndake’s area. To date, ZCCM-IH has spent over one million Kwacha on this water initiative, with over 10 water boreholes having been sunk in Sinda, Petauke, Nyimba, Chongwe, Chilanga, Dundumwezi, Mungwi, Lufwanyama, Masaiti, and Ndola over the last 3 years. In the spirit of inclusion, ZCCM-IH Corporate Social Investment (CSI) initiatives go beyond the Corporate Social Responsibility (CSR) norm, by offering support beyond the borders of areas it has assets or interests.

As such, Senior Chief Ndake of the Nsenga people in Nyimba who graced the occasion thanked ZCCM-IH for their efforts, especially considering ZCCM-IH had no investments in the area, and urged the company to continue rendering support to his Chiefdom, and consider investment opportunities in the area.
Investee Company News, ZCCM-IH News

Zambia to pass new law handing greater procurement to local companies

THE Zambian government’s interventionist approach to its mining sector was on display after the country’s mines minister, Richard Musukwa, was quoted by Reuters as having said a law would be passed to improve local procurement.

Musukwa said during a meeting with suppliers, labour unions and other officials on the proposed law that the mining sector imported goods and services worth over $4bn annually but only 10% went to local suppliers.

“This is a mismatch and must not be entertained,” Musukwa was quoted as saying. “Mining investors have been a darling of foreign contractors,” he said, without specifying how much the government wanted miners to procure locally.

Zambia’s comparative advantage is in mining, and the government needs to ensure that the mining industry drives growth in other sectors of the economy, Musukwa added.

Zambia is Africa’s second-largest copper producer, with copper mining accounting for around 70% of foreign currency earnings, said Reuters.

The country is currently embroiled in a legal dispute with Vedanta Resources over ownership of Konkola Copper Mines in which ZCCM-IH, a state-owned company, has a 20.6% stake. It has gone to the courts to wind up the company which it intends to sell to another company.

Whilst Zambia has said its dispute with Vedanta is an isolated incident, it has increasingly voiced its displeasure with the mining sector.

On May 24, Zambia said it may conduct audits at all its mines in order to check for some of the breaches imputed to KCM. Two weeks later, the country’s president, Edgar Lungu, said Zambia would break ties with mining companies that failed to meet its laws.
ZCCM-IH News

ZCCM-IH | Notice of Incorporation of Kabundi Mining Resources Limited

At its Special Board Meeting held on 29 March 2019, the ZCCM Investments Holdings Plc (‘ZCCM-IH’) Board approved the incorporation of a mining operating Company. In line with one of its strategic objectives in mining value creation, ZCCM Investments Holdings Plc (‘ZCCM-IH’) wishes to announce the incorporation of Kabundi Resources Limited (‘KRL’) a wholly owned subsidiary. KRL is located in Chief Muchinda’s area in Serenje District, Central Province. KRL is a mine operating company whose main activities include mining, processing and marketing of manganese and other non-ferrous metals. KRL was registered on 8 May 2019.

The ZCCM-IH Board is confident that KRL will add value to the Company’s current mining portfolio and provide an opportunity for ZCCM-IH to expand its activities in the mining sector.

By Order of the Board
C Chabala
Company Secretary

Issued in Lusaka, Zambia on 28 June 2019

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a founder member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on 28 June 2019
ZCCM-IH News

Local Investors a Must

MINING will for a very long time continue being part of Zambia’s economic development. There is abundant evidence of this right across the country.
What may not be in abundance, however, is information or plans on how best Zambia will manage this resource.
It is heartening though that State enterprises are earnestly taking a keen interest in being direct participants in this activity.
A case in point is the revelation by the Zambia Consolidated Copper Mines-Investments Holding (ZCCM-IH) that it plans to invest US$2.4 million in a manganese plant in Serenje district, Central Province.
According to ZCCM-IH, operations at the mine are set to start in the next two months. The mine has potential to produce about 20,000 tonnes of manganese per annum.
Kabundi Resources Limited, a subsidiary of ZCCM-IH, will oversee the management of the mine, which will create 300 jobs for the local people.
This decision is good news for the country as a whole, the people of Central Province, in general, and Serenje, in particular.
For a long time, the country’s major mining activities were confined to Copperbelt Province. This contributed to a massive rural–urban drift as citizens from various parts of the country flocked to the Copperbelt in search of jobs and business.
But today, mining in Zambia is becoming even more entrenched with a wide range of activities in virtually all of its 10 provinces: copper and cobalt in North-Western Province; manganese in Luapula and Central provinces, gold in Eastern Province, as well as gems and coal in Western and Southern provinces.
Of course, there are a lot more activities than these examples. The bottom line is that the mining activities are spreading.
Notably though, most of these mines are in private hands.
That is why it is heartening that ZCCM-IH, a firm with over 70 percent ownership by Government, is expanding its activities by investing in manganese mining in Serenje.
Zambia needs foreign investors in all sectors of the economy but the best investors should be the local ones, especially those who internalise most of their earnings.
ZCCM-IH is one of such local investors. It should, therefore, be encouraged to make the most of its vantage position to grow the sector for the good of Zambia.
Mining accounts for 12 percent of the country’s gross domestic product and about 70 percent of total export value.
The mining sector is, therefore, Government’s cash cow as well as a major employer with tens of thousands of jobs created directly and indirectly.
Despite the focus having been on copper and emeralds, there has always been this belief that the country also has very good potential for further discoveries.
ZCCM-IH has moved a step ahead by converting potential into reality by ensuring that mining is actualised, and more importantly at a comparatively massive scale.
By beginning operations through Kabundi Resources Limited, its subsidiary, ZCCM–IH has taken care of concerns that minerals are not bringing as much benefit as they should.
This is given that ZCCM-IH intends to diversify its portfolio by venturing into mining and manufacturing.
Zambia is endowed with so much mineral wealth that some of the minerals are now being mined by artisans.
This is what is happening to manganese deposits in Luapula as well as gold deposits in Luano, Central Province, Rufunsa in Lusaka Province and several parts of Eastern Province.
Zambia produces about 700 tonnes of amethyst annually. These precious stones are found in Mapatizya in Kalomo and Mumbwa-Namwala areas.
It is good that ZCCM-IH intends to explore for mineral wealth in Eastern Province besides buying gold from small-scale miners.
ZCCM-IH should not be a mere spectator in this sector, where foreign investors and illegal miners are cashing in.
With ZCCM-IH being proactive, there is hope that the country will benefit more from its mineral endowment.
Zambia should not be in financial challenges amidst plenty of natural and mineral wealth.
We hope that other local institutions or companies will emulate ZCCM-IH by taking stock of other natural resources such as timber, especially the much sought for mukula and fish, which are not benefitting the country sufficiently.
Zambia must have more of its own investors.
Archived Tenders

Request for EOI for the Provision of Full Valuation of ZCCM-IH Investee Companies

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR THE FULL VALUATION OF ZCCM-IH INVESTEE COMPANIES, CONTRACT NO.: OIB/ZCCM-IH/035/2019

1.0 Background
ZCCM Investments Holdings Plc. (ZCCM-IH) is an investment holding company with diversified interests in mining, energy, banking, property and other sectors of the Zambian economy. The company has a primary listing under ISIN number ZM0000000037on the Lusaka Stock Exchange, and secondary listings on London Stock Exchange and Euronext Stock Exchange in Paris.

The Zambian Government (GRZ) directly holds 17.25% of the shares in ZCCM-IH and 60.28% indirectly through Industrial Development Corporation (IDC), an investment company wholly owned by the Zambian Government. With the remaining 22.47% being held by institutions and individuals. The geographical spread of the minority shareholders, who number around 4300, covers over 29 countries in Europe, Africa, the Caribbean, Australia, Asia and the USA.

ZCCM-IH holds the majority of its investments in the mining sector and has shareholding interest in the undernoted companies:

No. Company Relationship Shareholding % Status
1 Ndola Lime Company Limited Subsidiary 100.00% Active
2 Misenge Environmental and Technical Services Ltd Subsidiary 100.00% Active
3 Nkandabwe Coal Mine Limited Subsidiary 100.00% Inactive
4 Investrust Bank Plc Subsidiary 71.40% Active
5 Kariba Minerals Limited Associates 50.00% Active
6 Maamba Collieries Limited Associates 35.00% Active
7 Konkola Copper Mines Plc Associates 20.60% Active
8 Kansanshi Mining Plc Associates 20.00% Active
9 Copperbelt Energy Corporation Plc Associates 24.10% Active
10 CEC Africa Investments Limited Associates 20.00% Active
11 Lubambe Copper Mine Plc Associates 20.00% Active
12 CNMC Luanshya Copper Mines Plc Associates 20.00% Active
13 NFC Africa Mining Plc Associates 15.00% Active
14 Chibuluma Mines Plc Associates 15.00% Active
15 Chambishi Metals Plc Associates 10.00% Active
16 Mopani Copper Mines Plc Associates 10.00% Active
17 Nkana Alloy Smelting Company Limited Associates 10.00% Inactive

IFRS requires that investments be stated at fair value at every annual reporting period. This requires that a valuation of the investments is conducted every financial year to ascertain their fair values. The fair valuation is conducted by an independent consultant as will be appointed from time to time.

In this respect fair valuation for the preceding financial year was conducted by Imara Corporate Finance.

ZCCM – IH now seeks to appoint a consultant to perform a full fair valuation of ZCCM – IH investments as at 31st December 2019 and a Desktop Valuation as at 31st March, 2020.

2.0 Objective of the assignment
The company is in the process of preparing its Industrial Development Corporation (IDC) reporting for the year ending 31 December 2019 and statutory financial statements for the year ending 31 March 2020 and requires a fair valuation of its investments as per IFRS 13 Fair Value Measurement and IFRS 9: Financial Instruments as at 31st December, 2019 and a desktop review as at 31 March 2020.

3.0 Scope of Work
Perform a full valuation as well as desktop review and provide an independent valuation opinion of ZCCM-IH’s investments in accordance with IFRS 13: Fair Value Measurement and IFRS 9: Financial Instruments.

The valuation will consider the following:

  • The review of historical, projected financial and operating performance of the Investee Companies and material developments.
  • The review of relevant industry, macroeconomic and market related information fundamental to each investment and assess the impact on the valuation of the investments.
  • The appropriate valuation methodology for each investment in consultation with ZCCM – IH’s management and external auditors.
  • Present to ZCCM-IH’s management and external auditors the nature and extent of changes in valuation assumptions and relative valuation result in line with the timelines stipulated.
  • Conduct impairment tests of an investment, where there in an indication of impairment in accordance with IFRS 9 – Financial instruments.
  • Attend to all incidental matters related to performance of fair market valuation

ZCCM-IH now invites eligible consultants 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 consultants 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 consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below no later than Friday, 21st June 2019.

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
Archived Tenders

Request for EOI for the Provision of External Audit Services to ZCCM-IH

Request for Expressions of Interest (EOI) for the Provision of External Audit Services to ZCCM-IH, Contract No.: ZCCM-IH/034/2019

1.0 Background
ZCCM Investments Holdings Plc (ZCCM-IH) is an investments holdings company which is quoted on the Lusaka, London, and Euronext Stock Exchanges, and has the majority of its investments held in the copper mining sector of Zambia. The Government of the Republic of Zambia holds directly about 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 17 companies, including mines such as Kansanshi Mining Plc, Mopani Copper Mines Plc and Konkola Copper Mines Plc. Its shareholding in the 17 companies ranges from 10% to 100%, with commodities and services that are diversified in nature, including copper, gold, cobalt, coal and power, telecommunication, limestone, mining consultancy, financial services and gemstones.

ZCCM-IH wishes to engage Group External Auditors to provide external audit services to ZCCM-IH and its Subsidiaries.

2.0 Objective
The objective of the external Audit is to express an opinion in accordance with International Auditing Standards (ISA) on whether the Financial Statements of the Group and its Subsidiary Companies are presented fairly and in all material respects in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Companies Act of Zambia for the year ending 31 December 2019 and 31 March 2020. The external Auditor will also report on whether the required accounting records, other records and registers have been properly kept in accordance with the Act.

3.0 Scope of Work
a) The audit will be carried out in accordance with ISA as stated above and will include such tests and verification procedures as the auditors consider necessary.
b) Review the Internal Control environment so as to have sufficient knowledge of the systems and procedures of the organization.
c) Carry out tests so as to have an understanding of the accounting system and assess its adequacy as a basis of preparation of financial statements.
d) Confirm that although responsibility for fraud and irregularity remains with Directors, the audit has been planned so as to have reasonable expectation of detecting material misstatements.
e) Review of Significant Investments.
f) Consultation on any other matters that may arise during the contract period.

No. Company Relationship Shareholding % Status
1 Ndola Lime Company Limited Subsidiary 100.00 Active
2 Misenge Environmental and Technical Services Ltd Subsidiary 100.00 Active
3 Nkandabwe Coal Mine Limited Subsidiary 100.00 Inactive
4 Investrust Bank Plc Subsidiary 71.40 Active
5 Kariba Minerals Limited Associates 50.00% Active
6 Maamba Collieries Limited Associates 35.00% Active
7 Konkola Copper Mines Plc Associates 20.60% Active
8 Kansanshi Mining Plc Associates 20.00% Active
9 Copperbelt Energy Corporation Plc Associates 24.10% Active
10 CEC Africa Investments Limited Associates 20.00% Active
11 Lubambe Copper Mine Plc Associates 20.00% Active
12 CNMC Luanshya Copper Mines Plc Associates 20.00% Active
13 NFC Africa Mining Plc Associates 15.00% Active
14 Chibuluma Mines Plc Associates 15.00% Active
15 Chambishi Metals Plc Associates 10.00% Active
16 Mopani Copper Mines Plc Associates 10.00% Active
17 Nkana Alloy Smelting Company Limited Associates 10.00% Inactive

ZCCM-IH now invites eligible consultants to indicate their interest in providing the above services. Interested firms must provide information to demonstrate that they are qualified to perform the services (e.g. brochures, description of similar assignments, experience in similar conditions etc.).

Interested consultants 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 consultant will be selected using Quality and Cost Based Selection (QCBS) method. Interested consultants must submit one (01) original and three (03) hard copies of the Expression of Interest to the address below not later than Friday, 21st June 2019.

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
Corporate Social Investment, ZCCM-IH News

Chitulungu Basic School in Mungwi District of Northern Province Receives a Water Borehole Sunk by ZCCM-IH.

Drilled at a cost of K80,000, the water borehole sunk at Chitulungu Basic School in Mungwi District of Northern Province is one of the many ZCCM-IH has handed over to Zambian residents in remote areas with little or no access to clean drinking water. This water borehole, expected to provide clean drinking water to over 2,000 residents, is part of the ZCCM-IH ‘Clean Water for Zambia’ Corporate Social Investment (CSI) campaign. The event was graced by His Royal Highness, Paramount Chief Chitimukulu of the Bemba people.

ZCCM-IH News

Industrial Development Corporation Limited settlement of loan owed to ZCCM Investment Holdings PLC (Updated)

The Shareholders of ZCCM Investment Holdings Plc (“Shareholders”) are referred to the announcement published on the Securities Exchange News Service (“SENS”) by ZCCM-Investments Holdings Plc (“ZCCM-IH” or the “Company”) dated 15th June 2018.

The announcement advised that on 2 April 2018, ZCCM-IH and the Industrial Development Corporation Limited (“IDC”), majority Shareholder, entered into a related party transaction through a Loan Facility Agreement whereby ZCCM-IH advanced a loan amount of US$19,000,000 to the IDC with a maturity period of 12 months.

ZCCM-IH wishes to announce that the IDC has fully settled the principal and interest amounts owed to ZCCM-IH. The payment was made on 2 April 2019 in line with the Loan Facility Agreement between the parties.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Thursday, 25th April 2019

Lusaka Securities Exchange Sponsoring Broker
T | +260-211-232456
E | advisory@sbz.com.zm
W | www.sbz.com.zm
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia

First Issued on Friday, 15th June 2018
Corporate Social Investment, ZCCM-IH News

ZCCM-IH Commemorates International Women’s Day by Donating Assorted Household Items to an NGO focused on the underprivileged.

ZCCM-IH joined women all over the world in commemorating International Women’s Day under the theme the “Think Equal, Build Smart, Innovate for Change.” In this spirit, ZCCM-IH was at Divine Mercy Homes of Shantumbu Village in Kafue, to donate various household items valued at a total of K35, 000.

Divine Mercy Homes has set homes, community schools, and clinics around Zambia all providing care, shelter, education, protection, and support to the aged, vulnerable children, and people living with Cancer and HIV/AIDS.
ZCCM-IH News

ZCCM-IH | Notice to Shareholders based in France on Withholding Tax applicable

Dear Sirs/Mesdames

APPLICATION FOR LIMITED DEDUCTION DIRECTION FOR DIVIDEND PAYABLE BY ZCCM INVESTMENTS HOLDINGS PLC TO FRENCH SHAREHOLDERS

Following your application for withholding tax exemption with the Zambia Revenue Authority (ZRA), we wish to advise that ZRA is unable to grant the Limited Deduction Directions (LDDs) for all dividend payments by ZCCM Investment Holdings Plc to the Shareholders resident in France. Consequently, all dividend payments are made in 2019 will attract 20% withholding tax.

For further queries on the matter, we advise that you contact ZRA directly.

Yours faithfully
ZCCM Investment Holdings Plc

C Chabala
CCSO/Company Secretary

Download the signed notice here…