ZCCM-IH

Investee Company News, Press Releases, ZCCM-IH News

Press Statements by ZCCM-IH and KCM during a Joint press briefing over the Default Judgment against the latter

ZCCM-IH Offices, Lusaka – Konkola Copper Mines (KCM) is one of Zambia’s largest copper producers and one of the largest private sector employers in the country, with operations in four locations, namely Chingola, Chililabombwe, Kitwe and Nampundwe.

The majority shareholder of KCM is London-listed Vedanta Resources, which holds a 79.4% stake, while ZCCM-IH has a 20.6% shareholding in KCM.

KCM and ZCCM-IH have been engaged in discussions with regards to the price participation settlement agreement, which was entered into by both parties in December 2012.

On Friday 16th December, the High Court in London requested KCM to settle this amount with ZCCM-IH and resolve this matter within 28 days.

I am standing here today as part of a joint press briefing with the CEO of ZCCM-IH, Dr Pius Kasolo, to assure all of our stakeholders that we are working together to resolve this matter amicably and to reassure everyone that there is no risk to the KCM business.

We remain fully committed to fulfilling our financial obligations.

Vedanta remains committed to the Group’s operations in Zambia, which is reflected by the significant investment of over $3 billion in KCM since 2004.

Vedanta and KCM have a 50 year vision to continue mining copper in Zambia and we look forward to further strengthening our relations with all stakeholders, including ZCCM-IH.

Mr Steven Din
Chief Executive Officer
Investee Company News, Press Releases, ZCCM-IH News

Press Statements by ZCCM-IH and KCM during a Joint press briefing over the Default Judgment against the latter

ZCCM-IH Office, Lusaka – As you may be aware, ZCCM Investments Holdings Plc (ZCCM-IH) obtained a Judgment against Konkola Copper Mines Plc (KCM) in the sum of about $ 103 Million to be paid within 30 days, as a result of unpaid sums due to ZCCM-IH dating back to 2012.

I must mention and emphasize that ZCCM-IH is not in the business of litigating, but in the business of enhancing value for its shareholders.

In the quest to achieve this, there are instances where misunderstandings between parties have to be resolved by an independent body, which in this instance was the courts of law.

This should not be taken as a deliberate attack on our partners or indeed a quest to injure them. The action was undertaken because we are also answerable to our shareholders and various stakeholders which include the Zambian people.

ZCCM-IH remains committed to ensuring that the KCM operations continue in the country, and to provide the necessary support to them, to ensure that we enhance the value of our stake in the Company.

Following the judgment and this joint briefing, we wish to state that the business relationship between ZCCM-IH and KCM will continue, but also to remind our partners that we will do what is necessary to protect our interests.

Going forward, both ZCCM-IH and KCM have committed to manage the business, in a manner that is mutually beneficial to all the parties involved.

Dr. Pius C. Kasolo
Chief Executive Officer
Investee Company News, ZCCM-IH News

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
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 19 December 2016
Investee Company News, ZCCM-IH News

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

Corporate Announcements

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
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 29 November 2016
ZCCM-IH News

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
ZCCM-IH News

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
Investee Company News, ZCCM-IH News

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

Corporate Announcements

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
Corporate Announcements

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