ZCCM-IH | Announcement default judgement against KCM

We refer to the Market Update where the market was advised that ZCCM-IH had filed a Claim Form with the English High Court to recover outstanding sums in excess of US$100 million due to it from Konkola Copper Mines Plc (KCM) pursuant to the terms of the Settlement Agreement entered into in 2013.

We now advise that ZCCM-IH has been successful in its application for default judgment. KCM has been ordered (on 16 December 2016) to pay all sums owed to ZCCM-IH pursuant to the Settlement Agreement (plus associated contractual interest) within thirty (30) days. The total amount to be paid by KCM amounts to approximately US$103 million. KCM has also been ordered to reimburse ZCCM-IH 80% of the costs it has incurred in pursuing its claim.

Further directions have been given to determine whether KCM made payments to Vedanta Group Companies in breach of the prohibition on doing so under the Settlement Agreement. If and to the extent it is determined that such payments were made, ZCCM-IH will be entitled to recover additional sums from KCM.

By Order of the Board
C Chabala
Company Secretary


Issued in Lusaka, Zambia on 20 December 2016

Lusaka Securities Exchange Sponsoring Broker
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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 19 December 2016

Vedanta Unit Told to Pay Zambian State Company $103 Million

Vedanta Resources Plc’s Zambian unit must pay the southern African country’s majority state-owned mining investment company about $103 million after a London ruling related to a copper-price agreement.

ZCCM Investments Holdings obtained a default judgment in the U.K.’s High Court of Justice against Konkola Copper Mines on Dec. 16, it said in an e-mailed statement Monday. KCM said in an e-mailed statement on Tuesday that it’s consulting with ZCCM-IH and “other relevant stakeholders to resolve all outstanding issues within 30 days, in accordance with the court’s ruling.”

KCM hadn’t paid the money owed under the copper-price participation deal because of “operational and financial challenges,” ZCCM-IH, which has a 20.6 percent shareholding in Konkola, said in its 2015 annual report. The Vedanta unit was in talks with ZCCM-IH and the government to pay the claim, which needed to be settled from available cash flows, KCM Chief Executive Officer Steven Din said Nov. 10. The company was at that point hoping to resolve the matter out of court, after ZCCM-IH filed the case in June, he told investors on a call.

“We are working together to resolve this matter amicably,” Din told reporters at a joint press briefing with ZCCM-IH in Lusaka, Zambia’s capital, on Tuesday.

The court ruled that ZCCM-IH is entitled to recover more money from KCM if it’s found that the company transferred funds to Vedanta, which would have been in breach of the pricing agreement.

ZCCM-IH is also claiming damages from First Quantum Minerals’ Kansanshi unit in Zambia, in which it has a 20 percent shareholding, in the Lusaka High Court, and has started arbitration proceedings in London over the same matter related to a loan it said Kansanshi gave First Quantum that wasn’t at arm’s length terms. First Quantum denies any wrongdoing.


Source: Bloomberg

New appointment of Non-Executive Director on the Board of ZCCM-IH

In compliance with the Securities Act and the Lusaka Securities Exchange (“LuSE”) Listing Requirements, ZCCM-IH announces the appointment of Mr. Teddy D. Mulonga as Non-Executive Director on the ZCCM-IH Board representing the National Pension Scheme Authority (NAPSA) which holds 15% shares in the Company. Mr. Mulonga was appointed to the ZCCM-IH Board on 31 October 2016.

Mr. Mulonga has vast experience spanning decades in senior management positions both in the private and public sectors. He has served in senior positions in the Government of the Republic of Zambia, including as Director General Zambia National Tender Board, Permanent Secretary in the Ministry of Labour and Social Security, Permanent Secretary Ministry of Sport, Youth and Child Development and also as Deputy Secretary to the Cabinet – Administration.

He worked for the Bank of Zambia and the Mutende Investments Group of Companies. He has served on various Boards including Ndola Lime Company, Kariba North Bank Limited and as Chairman of both Kariba Minerals Limited and the Local Authority Superannuation Fund. He also served as President of the Bible Society of Zambia.

He is currently serving as Board Chairperson for the National Pension Scheme Authority, Council Member of the Zambia Institute of Purchasing and Supply and Managing Consultant at TDM and Associates.

Mr. Mulonga is a graduate from the University of Zambia with a Bachelor of Arts Degree.

The ZCCM-IH Board is confident that Mr. Mulonga will contribute immensely to the development and realization of the goals of the Company.


By Order of the Board
C Chabala
Company Secretary


Issued in Lusaka, Zambia on 29 November 2016

Lusaka Securities Exchange Sponsoring Broker
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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 29 November 2016

Invitation – Investor Day: ZCCM-IH’s shareholders on Euronext Paris Stock Exchange

Dear Esteemed Investor,

You are cordially invited for the Investor Day interaction meeting to be held on Friday, 02 December, 2016, from 1400 hours to 1800 hours. The venue is at the SERVCORP CENTRE DE CONFERENCES EDOUARD VII – PARIS OPERA (23 square Edouard VII 75009 Paris, France T +33 1 53 43 91 00 servcorpconferences.fr), in the Sydney amphitheater.

This interaction event is a component of ZCCM Investment Holdings Plc’s overall investment communications program and will discuss the company’s general affairs already in the public domain. The event will also provide an opportunity to hear from the investors.

In attendance will be the Chief Executive Officer & Executive Board Director – Dr. Pius C. Kasolo, Chief Financial Officer – Mr. Mabvuto Chipata, Chief Corporate Services Officer/Company Secretary – Mr. Chabby Chabala and Non-Executive Board Director – Mr Philippe Taussac.

Please kindly confirm your attendance to me at kakomal@zccmnew.wpenginepowered.com.

Yours Faithfully,
ZCCM Investments Holdings Plc

Loisa Mbatha-Kakoma
Public Relations Officer

Invitation à la Journée Investisseurs faites pour les actionnaires de ZCCM-IH sur Euronext Paris

Cher et estimé investisseur,

Vous êtes cordialement invité à participer à la Journée Investisseurs qui se tiendra le vendredi 2 Décembre 2016 de 1400 heures à 1800 heures. La réunion se déroulera au Centre de Conférences Edouard VII (23 square Edouard VII – Paris 9ème – Tel +33 1 53 43 91 00 – servcorpconferences.fr) dans l’amphithéâtre Sydney.

Cet événement interactif est une composante du programme global de communication de ZCCM Investments Holdings Plc concernant les investissements et traitera des affaires générales de la société qui sont déjà dans le domaine public. Cet événement sera également l’occasion d’écouter les investisseurs.

Seront présents le Dr. Pius C. KASOLO Directeur Général et membre du Conseil d’Administration, M. Mabvuto CHIPATA Directeur Financier, M. Chabby CHABALA Directeur des Services Généraux et Secrétaire Général, et M. Philippe TAUSSAC membre du Conseil d’Administration.

Merci de bien vouloir me confirmer votre présence à l’adresse kakomal@zccmnew.wpenginepowered.com.

Cordialement,
ZCCM Investments Holdings Plc

Loisa Mbatha-Kakoma
Chargé de Relation Publiques

First Quantum Faces $1.4 Billion Claim From Zambian Firm

ZCCM Investments Holdings, the state-controlled Zambian company that holds minority stakes in most of the country’s copper mines, plans to claim as much $1.4 billion from First Quantum Minerals Ltd. after accusing the Vancouver-based company of fraud. The Canadian company’s stock fell.

The claim includes $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, obtained by Bloomberg.

The company 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.

ZCCM-IH, in which the Zambian government has a 77 percent stake, said in papers filed in the Lusaka High Court on Oct. 28 that First Quantum used the money as cheap financing for its other operations. ZCCM-IH also last month filed a notice of arbitration against Kansanshi in London over the same matter. ZCCM-IH owns 20 percent of Kansanshi. No figure was mentioned in the court filings.

First Quantum says the claims are “inflammatory, vexatious and untrue,” and that the loans were at fair market rate. First Quantum is in talks with Zambian government representatives to resolve the matter, it said in a Nov. 11 statement. It declined to comment on Monday.

The company’s shares fell 4.6 percent to C$13.57 by Tuesday’s close in Toronto.

FQM, as the company is known, is disregarding the rights of minority owners in ZCCM-IH in dealing directly with government, Philippe Bibard, a spokesman for a minority shareholder group based in France, said by phone Nov. 11.


Source: Bloomberg

ZCCM-IH | Cautionary update

Further to the two Cautionary Announcements regarding the change of Directorate issued on 15th September 2016 and the delay in the issuance of the audited Annual Financial Statements for the year ended 31st March, 2016 that was issued on 12th September 2016, ZCCM-IH wishes to advise its shareholders that the appointment of new Directors has not yet been concluded and consequently the Company still does not have a quorate Board.

The Company further wishes to advise that it has prepared provisional annual financial statements for the year ended 31 March 2016 as required by the Lusaka Securities Exchange (LuSE) Listing Requirements and the issuance of these awaits Board approval once a quorate Board is appointed.

Accordingly, shareholders are advised to continue exercising caution when dealing in ZCCM-IH securities until the Company has a quorate Board.

C Chabala
Company Secretary

Issued in Lusaka, Zambia on 7 November 2016

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

ZCCM-IH | Cautionary announcement

ZCCM Investments Holdings PLC (“ZCCM-IH”) Files a Notice of Arbitration against Kansanshi Holdings Limited and Kansanshi Mining PLC and Legal Proceedings against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascall, Arthur Mathias Pascall, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC.

In compliance with the requirements of the Securities Act, Cap 354 of the Laws of Zambia and the General Obligations of Disclosure under the Continuing Obligations of the Listings Requirements of the Lusaka Securities Exchange, shareholders are informed that on 26th October 2016, ZCCM-IH filed a Notice of Arbitration in London against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28th October 2016 ZCCM-IH commenced Legal Proceedings in Lusaka against First Quantum Limited, FQM Finance Limited, Philip K.R. Pascall, Arthur Mathias Pascall, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited.

Shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

Issued by ZCCM-IH Management

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

ZCCM-IH brings water to 3 Sinda communities

SONG and dance characterised the handover of a borehole to the Reformed Church of Zambia (RCZ) Sinda congregation by the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) recently. Even from afar the joy on the faces of the residents could be seen.

The church, which has a population of 5,000 congregants is surrounded by Mtendere, Tilitonse and Chamavu communities.

The three communities, have an estimated population of more than 10,000 people who are predominantly peasant farmers.

For some time now, access to clean and safe drinking water has been a challenge in the communities of the recently declared Sinda district and Mtendere, Chamavu and Tilitonse are not an exception.

The sources of water are mostly shallow wells which were usually shared between the people and animals and in most cases the water is contaminated, posing a huge health risk to the people.

As if that is not enough, the people here were used to walking a distance of about 2 kilometres to the nearest water point to get the commodity when most water sources nearby went dry.

“Our women woke up as early as 02:00 hours to go and queue up for water. In most cases, they came back with empty containers. This was very challenging as their lives were at risk. In addition to that, most marriages were at risk as men thought their wives were not faithful to them,” said Daniel Chamvu a resident of Mtendere community.

However, the situation is about to change as ZCCM-IH recently drilled a borehole in Mtendere community under its ‘Clean water for Zambia’ project aimed at improving access to clean and safe drinking water in many rural parts of the country.

The project which is valued at K500,000 will see 11 boreholes drilled in designated rural areas before the end of the year. So far, two out of the 11 boreholes have been drilled in Sinda.

The recently-drilled borehole will help in shortening distances that people covered in search of water.
And a resident of Chamavu community, Kawereka Banda expressed happiness at the gesture by ZCCM-IH and said the borehole will go a long way in improving the quality of life of the people of the three communities.

“Our children were not even able to go to school because of shortage of water. There was also a high number of cholera and diarrhoea cases in our communities. Now that we have water at our door step, the health of our people will improve, thereby promoting productivity, as they say a healthy community is a developed one,” he said with a smile.

Banda also said easy access to water will also spur the growth of agriculture in the area as people will not spend most of their time looking for water.

And Sinda district commissioner Rodgers Sakala said access to clean and safe drinking water is a necessary component in every country’s development.

Mr Sakala said it is the desire of the government that every household must have running water at its door step by the year 2030.

“As Government, we are alive to the many challenges that our people are facing as far as access to safe and clean drinking water is concerned. Water is very essential to the health and general well-being of our people. I am optimistic that our people here in Sinda will no longer walk long distances to access water,” Mr Sakala said.
He appealed to the people of Sinda to guard the facility jealously in order to enable other residents of the surrounding communities benefit from the borehole.

And ZCCM-IH executive director Dr Pius Kasolo said his company, in partnership with Government is committed to improving the quality of life for all Zambians by ensuring that challenges of shortage of water becomes a thing of the past.

He pledged ZCCM-IH’s continued support to programmes aimed at taking clean and safe drinking water close to the people.

“Water is life and without it life becomes difficult, government in partnership with ZCCM-IH is committed to ensuring that all Zambians have easy access to water. Once people have clean water they will have healthy and productive lives,” He said.

And another resident of Tilitonse community Elina Phiri said the gesture by ZCCM-IH has given a sigh of relief to the women of Sinda district.

She said the borehole could not have come at a better time than now when access to water has become increasingly challenging for most communities.

It is, therefore, the responsibility and duty of every resident of the three communities to guard the facility jealously so that it sustains their livelihood in the long run.


Source: Daily Mail

UNZA students win mining awards

UNIVERSITY of Zambia fourth year student Absalom Tembo has scooped the 2015/2016 Konkola Copper Mines Plc prize for the overall final year student in the School of Mines. During the School of Mines Student award-giving ceremony held on Friday at UNZA veterinary lecture theatre, James Chulombo won the Konkola Copper Mines Plc prize for the best graduating student in Geology while Katongo Kangwa came out as the best graduating student in Mining Engineering.

Absalom Tembo again got the award for the best graduating student in Metallurgy and Mineral Processing and Parson Banda won the Mopani Copper Mines prize for the best final year project in Geology.

The best final year project in Mining Engineering award sponsored by Mopani Copper Mines went to Brighton Samatemba while Kennedy Chansa was awarded the best project final year project in Metallurgy and Mineral Processing.


Source: Daily Mail