Govt Restarts Mopani Negotiations

Minister of Finance Bwalya Ng’andu says government has restarted negotiations with Mopani Copper Mines Plc to find a solution that will avoid the mine being placed under care and maintenance.

Dr Ng’andu says it is not the desire of government to close the mine but find solutions to sustain operations beyond 90 days.

The Minister is leading a delegation who include Minister of Mines and Minerals Development Richard Musukwa, Minister of Labour Joyce Simukoko, Minister of Energy Mathew Nkhuwa and Copperbelt Minister Japhen Mwakalombe.

Speaking when he met mine unions and Mopani Copper Mines officials, Dr Ng’andu said President Edgar Lungu has sent the team to discuss how best operations can continue running while being mindful of the challenges the mining firm is going through.

He is hopeful that discussions will center around continuing operations beyond 90 days as applied for by Mopani Copper Mines Plc to place the mine on care and maintenance.

Meanwhile, Mr. Musukwa said government wants Mopani to structure a surviving model and engage local contractors as opposed to foreigners with a top cost profile.

Mr. Musukwa said engaging local contractors will help Mopani to deal with some of its challenges adding that government remains open to dialogue to find a win-win situation.

And Mineworkers Union of Zambia President Joseph Chewe said Unions will not allow Glencore to close the mine and should they decide to do so they should be asked to leave.

Mopani Copper Mines Plc Acting Chief Executive Officer Charles Sakanya said the mine is faced with challenges among them VAT refunds.

The delegation is on the Copperbelt to find solutions to the challenges at Mopani Copper Mines Plc, Chambishi Metals, NFCA, Copperbelt Energy Corporation CEC, and Lubambe Mine.

Source: https://www.znbc.co.zm/news/govt-restarts-mopani-negotiations/

Investrust Bank seeks to raise approximately K400 million in rights issue

Investrust Bank Plc has announced that it will be calling for an Emergency General Meeting (EGM) in Q2 2020 for the sole purpose of approving an approximately K400.40 million through a Rights Issue, according to a statement from the bank.

The EGM is scheduled for Friday 5th June 2020 commencing at 10:00 hours with the purpose of “considering the passing of resolutions to approve the raising of capital in the sum of ZMW 400,497,909.75 (Four Hundred Million Four Hundred Ninety-Seven Thousand Nine Hundred Nine Kwacha Seventy-Five Ngwee) through a 5 for 1 Renounceable Rights Offer by the issuance of 40,825,475 (Forty Million Eight Hundred Twenty-Five Thousand Four Hundred Seventy-Five) ordinary shares of ZMW 1.00 par value each at an Offer price of ZMW 9.81 (Nine Kwacha Eighty-One Ngwee) per share to Shareholders on Record Date (“the Rights Offer”)”, according to a statement issued by the Bank’s Company Secretary Brian Msidi on 13 May 2020.

A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. These are considered to be a type of option since it gives a bank’s stockholders the right, but not the obligation, to purchase additional shares in the company.

The last time the bank was involved in a capital raising through a rights issue involved its majority shareholder, ZCCM-IH, in 2016. “The Renounceable Rights Offer of 3,499,563 (Three Million Four Hundred and Ninety-Nine Thousand Five Hundred and Sixty-Three) Rights Offer Shares of ZMW 1.00 (one Zambian Kwacha) par value each in the share capital of Investrust, at a subscription price of ZMW 11.44 (Eleven Kwacha Forty-Four Ngwee) per Rights Offer Share, on the basis of 3 new Rights Offer Shares for every 4 Ordinary Shares already held at the Record Date, payable in full on acceptance” , according to a circular issued by the Bank in collaboration with ZCCM-IH in February 2019,

In a rights offering, the subscription price at which each share may be purchased is generally discounted relative to the current market price. Rights are often transferable, allowing the holder to sell them in the open market. With the latest rights issue, Subject to the adoption of the Special Resolution, it is envisaged that the Rights Offer Circular will be posted on or about 10 July 2020 to shareholders. This will provide the details that investors (current shareholders and external investors) that they need to make the investment decision.

Source:  http://fizambia.com/?p=6874

CEC, Zesco Opt for Arbitration

The end of the bitter war over the future of the Bulk Supply Agreement which expired last month, Zesco and Copperbelt Energy Corporation have commenced the process of arbitration with the hope of settling their deep-rooted differences.

At the end of March, Zesco proceeded to terminate its Bulk Supply Agreement with CEC over a tariff dispute, effectively ending a 20-year business relationship.

But in a notice to Shareholders, CEC says arbitration matter with Zesco is in process and remains under adjudication.

“Shareholders are referred to the cautionary announcement, dated 27th September 2019, issued by the Board of Directors of CEC informing the market that CEC was in receipt of a notice of intention to arbitrate from Zesco Limited, pursuant to the Bulk Supply Agreement and Article 3 of the UNCITRAL Arbitration Rules 1976, resulting from ZESCO’s claim that CEC has failed to pay money due to them for electricity supplied under the BSA,” the notice read.

” The amounts outstanding relate to the supply of power by CEC to Konkola Copper Mines Plc. Zesco’s other cited ground is its disagreement with a statement in CEC’s 2018 annual report relating to the contingent liability arising from the 2014 Energy Regulation Board electricity tariff increase specific to the mining companies, which the mining customers have legally contested and were granted a Court injunction, pending the determination of the matter by the High Court for Zambia.”

 Source: https://www.lusakatimes.com/2020/05/13/cec-zesco-opt-for-arbitration/

Mopani miners trickle back to work

MOPANI Copper Mines (MCM) has started recalling workers it sent on forced leave following its decision to resume operations early this week.
Last month, the mine suspended operations in Kitwe and Mufulira and sent workers on forced leave. It also terminated contracts with some companies it gets services from.
Glencore, the majority shareholders in MCM, did not give Government sufficient notice about its intention to place the Kitwe and Mufulira operations under care and maintenance, in accordance with provisions of the Mines and Minerals Development Act.
MCM’s decision also sparked protests among various stakeholders in the mining sector, who urged Government to revoke the mine’s licence. 

Source: http://www.daily-mail.co.zm/mopani-miners-trickle-back-to-work/

ZCCM-IH starts mining manganese in Serenje, Zambia

Works at the manganese mine in Serenje have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas.

ZCCM Investments Holdings Plc (ZCCM-IH) through its wholly-owned subsidiary Kabundi Resources Limited (KRL) are on-site and have started Phase one of the project in the small-scale mining license, with an initial capital injection of K18.6M.

Phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other areas of the ZCCM-IH Large Scale Exploration area in Serenje.

ZCCM-IH Chief Executive Officer Mr. Mabvuto Chipata undertook a site visit end of April 2020, where he also inspected works at the Kampumbu Resettlement area earmarked for the relocation of nine (9) households from the Kabundi mine site.

The Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services (ZEMA) involves the construction of an additional one-by-two classroom block, a health center, nine-by-three bedroomed houses for the relocation of the project affected families, one house for a teacher, and another house for a medical staff.

These buildings will also be serviced and fully connected with piped water sourced from water boreholes to be drilled in the area.

Mr. Chipata was happy with the progress made both at the mining operation and the RAP sites.

He stated that the mine will be fully operational by July 2020, and looked forward to having it officially launched by August 2020.

ZCCM-IH will spend a total of K4.5M to fulfill the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020.

The RAP project has so far employed over 20 locals. KRL will further employ over 150 youths at the mine site as production scales up upon relocation of the affected families.

KRL targets to mine about 60,000 tonnes of manganese by the end of the year during the ramp-up period of operations.

Production is targeted to reach 240,000 tonnes of manganese ore annually once commercial production is achieved.

The Company is a strategic investment aimed at diversifying the commodity mix of the ZCCM-IH’s portfolio which is largely comprised of copper producing assets.

Source: https://furtherafrica.com/2020/05/07/zccm-ih-starts-mining-manganese-in-serenje-zambia/, http://fizambia.com/?p=6770

Manganese Mine In Serenje District Reopens

Works at the Manganese Mine in Serenje District of Central Province have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas.

ZCCM Public Relations Manager Loisa Kakoma says ZCCM Investments Holdings PLC through its wholly owned subsidiary Kabundi resources limited are on site and have started phase one of the project in the small-scale mining license, with an initial capital injection of k18.6 million.

Mrs Kakoma explains that phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other areas of the ZCCM-IH large scale exploration area in Serenje.

She says ZCCM-IH Chief Executive Officer Mr. Mabvuto Chipata undertook a site visit end of April 2020, were he also inspected works at the Kampumbu Resettlement area earmarked for relocation of 9 households from the Kabundi mine site.

Source: https://www.phoenixfm.co.zm/business/manganese-mine-in-serenje-district-reopens/

ZCCM-IH Manganese project starts

ZCCM-IH has targeted to produce 60,000 tonnes of manganese this year at its mine in Serenje, which has commenced following the end of heavy rainfall.

The rain pattern had posed a challenge in accessing the mine sites, hence operations could not start earlier.

ZCCM-IH, through its wholly owned subsidiary Kabundi Resources Limited (KRL), has started phase one of the project in the small-scale mining license, with an initial capital injection of K18.6 million.

Public Relations Manager, Loisa Mbatha-Kakoma, yesterday told the Daily Nation that phase two of the project which was scheduled to start before the onset of this year’s rainy season would be extended to other areas of the ZCCM-IH large scale exploration area in Serenje.

Ms Kakoma said ZCCMIH Chief Executive Officer, Mabvuto Chipata, undertook a site visit last month and inspected works at the Kampumbu Resettlement area earmarked for relocation of nine households from the Kabundi mine site.

She said the Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services (ZEMA) involves the construction of an additional one-by-two classroom block and a health centre.

Nine three bedroomed houses for the relocation of the Project Affected families, one house for a teacher, and another house for a medical staff were also part of RAP.

“These buildings will also be serviced and fully connected with piped water sourced from water boreholes to be drilled in the area. Mr Chipata was happy with the progress made both at the mining operation and the RAP sites.

“The mine will be fully operational by July 2020. ZCCM-IH will spend a total of K4.5 million to fulfil the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020,” Ms Kakoma said.

 

Source: https://www.pressreader.com/zambia/daily-nation-newspaper/20200506/281835760869622

Serenje town set to ride the electric car curve

The central province town of Serenje, has joined the list of mining towns in Zambia after the confirmation that manganese mining has resumed and is expected to give it an alternative economic engine. The town which lies next to one of Zambia’s largest commercial farming hub of Mkushi, has mostly been an agricultural area and houses the massive 110,000 hectares Nansanga farm block.

The resumption of manganese mining is not only good for the economic diversification of Serenje, but for Zambia as a country. Manganese has recently become a well sought out metal following the shift in mostly the motor vehicle industry from combustion engines (petrol or diesel powered engines) to manganese-lithium battery powered electric cars.

ZCCM Investments Holdings Plc has announced that its subsidiary, Kabundi Resources Limited has commenced works at the manganese mine located in Serenje district following the end of the heavy rains that had hampered efforts to kick-starting operations, posing a challenge in accessing the mine site areas.

Kabundi Resources Limited – KRL are on site and have started phase one of the project via a small-scale mining license, with an initial capital injection of K18.6 million (about US$1 million). The ore grade is on average at 45%, which is relatively considered rich.

The company has disclosed that KRL targets to mine about 60,000 tonnes of manganese by the end of the year during the ramp up period of operations while production is targeted to reach 240,000 tonnes of manganese ore annually once commercial production levels are achieved.

ZCCM-IH Chief Executive Officer – CEO Mabvuto Chipata said in a statement made available to the Zambian Business Times – ZBT on April 05, 2020 that phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other license areas of the ZCCM-IH large scale exploration area in Serenje.

“I undertook a site visit end of April 2020, were we also inspected works at the Kampumbu resettlement area earmarked for relocation of nine (9) households from the Kabundi mine site,” He said.

He added that the Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services – ZEMA involves the construction of an additional one-by-two classroom block, a health center, nine-by-three bedroomed houses for the relocation of the Project Affected families, one house for a teacher, and another house for a medical staff.

Chipata was happy with the progress made both at the mining operation and the RAP sites saying the mine will be fully operational by July 2020, and looked forward to having it officially launched by August 2020. ZCCM-IH is set to spend a total of K4.5 million to fulfil the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020.

The ZCCM IH CEO further said the RAP project has so far employed over 20 locals and the KRL will further employ over 150 youths at the mine site as production scales up upon relocation of the affected families.

Zambia as a country has many avenues to turn around its fortunes and even pay off its national debt, but the pace of implementation of key revenue generating projects remains a challenge. As they say, the proof of the pudding is in the eating, it remains to be seen if ZCCM IH and it’s subsidiary Kabundi Resources will deliver the planned production levels and exports.

ZCCM Gold company is also another avenue to boost the countries revenue earnings which is moving at a snails pace. When the countries debt serving obligations are mounting, the country defaults to asking the government to get an IMF/world bank bail out package, why not instead put pressure for realizing such projects one may ask?

Source: https://zambianbusinesstimes.com/serenje-town-set-to-ride-the-electric-car-curve/

Works at the ZCCM-IH supported Manganese mine in Serenje commences

Works at the manganese mine in Serenje have commenced following the end of the heavy rains that had hampered kick-starting operations, posing a challenge in accessing the mine site areas.

ZCCM Investments Holdings Plc (ZCCM-IH) through its wholly-owned subsidiary Kabundi Resources Limited (KRL) are on-site and have started Phase one of the project in the small-scale mining license, with an initial capital injection of K18.6 million.

Phase two of the project which is scheduled to start before the onset of this year’s rainy season will be extended to other areas of the ZCCM-IH Large Scale Exploration area in Serenje.

ZCCM-IH Chief Executive Officer Mr. Mabvuto Chipata undertook a site visit end of April 2020, where he also inspected works at the Kampumbu Resettlement area earmarked for the relocation of nine (9) households from the Kabundi mine site.

The Resettlement Action Plan (RAP) approved by the Zambia Environmental Management Services (ZEMA) involves the construction of an additional one-by-two classroom block, a health center, nine-by-three bedroomed houses for the relocation of the Project Affected Families, one house for a teacher, and another house for medical staff.

These buildings will also be serviced and fully connected with piped water sourced from water boreholes to be drilled in the area.

Mr. Chipata was happy with the progress made both at the mining operation and the RAP sites.

He stated that the mine will be fully operational by July 2020, and looked forward to having it officially launched by August 2020.
ZCCM-IH will spend a total of K4.5 million to fulfil the RAP obligations, which are scheduled to be handed over to the beneficiaries in June 2020.

The RAP project has so far employed over 20 locals. KRL will further employ over 150 youths at the mine site as production scales up upon relocation of the affected families.
KRL targets to mine about 60,000 tonnes of manganese by the end of the year during the ramp-up period of operations.

Production is targeted to reach 240,000 tonnes of manganese ore annually once commercial production is achieved.
The Company is a strategic investment aimed at diversifying the commodity mix of the ZCCM-IH’s portfolio which is largely comprised of copper producing assets.

Source: https://www.lusakatimes.com/2020/05/05/281933/

ZCCM-IH Starts Mining Maganese In Serenje

The ZCCM-IH has started operations at its Manganese mine in Serenje, Central province, with expected production of 240, 000 thousand tonnes annually, once commercial production is achieved.

This is through ZCCM-IH’s Kabundi Resources, with an initial capital of K18.6 million.

The start of operations follows the end of the rains, which had hampered the project, as there was a challenge in accessing the mine area.

Phase two of the operations is expected to start before the onset of this year’s rain season, with large scale exploration in the same area.

ZCCM-IH Chief Executive Officer, Mabvuto Chipata says the mine will be fully operational by July 2020, and the company is looking forward to having it officially launched by August, this year.

Mr Chipata has also visited the Kampumbu Resettlement area, which is earmarked for relocation of 9 households, displaced from the Kabundi mine site.

He has explained that ZCCM-IH will spend K4.5 million to fulfil the relocation of affected families.

This is according to a statement availed to ZNBC news today by ZCCM-IH Public Relations Manager, Loisa Kakoma.

Source: https://www.znbc.co.zm/news/zccm-ih-starts-mining-maganese-in-serenje/