Conclusion of ZCCM-IH Balance Sheet Restructuring.
August 2015
The Government of the Republic of Zambia transfers 60.3% shareholding in ZCCM-IH to the Industrial Development Corporation Limited (Zambia)
2000 – ZCCM-IH Incorporated
ZCCM-IH is incorporated.
2000 Feb to Mar – Sale of ZCCM core mine packages to Anglo American
While a number of non-operational and smaller ZCCM mines, as well as the Power Division, were privatized relatively early, the eventual sale of the key mine packages at the core of ZCCM to Anglo American (Konkola, Nchanga, Nampundwe and a contract to run Nkana smelter) and First Quantum/Glencore (Nkana Mine and Mufulira) was only concluded at the end of March 2000.
1999 Oct – Anglo American refuses to take over social assets associated with the mines
Anglo American revises the basis of the original deal. A new agreement is reached whereby the high cost Nkana mine is excised from the sale, although the South African Company retains its option to run and purchase the Nkana smelter, crucial to its wider operations in Zambia. Anglo American refuses to take over social assets associated with the mines.
1999 Mar – ZCCM assets’ conclusion of sale deadline passes
The original deadline for the conclusion of the sale of the remaining key ZCCM assets passes. The preconditions set by Anglo American for the purchase have not been met.
Dec 1998 – Jan 1999 – Anglo American negotiates purchase of remaining ZCCM Assets
Anglo American negotiates the option to purchase all remaining key ZCCM assets. A number of preconditions are set by the company to include the identification of a suitable partner, the securing of finance, and the implementation of a ZCCM redundancy program to be paid for using donor funds.
1998 Oct to Nov – Anglo American agrees to relinquish Mufulira purchase rights
Anglo American agrees to relinquish its purchase rights over the Mufulira smelter in the event of an agreement being reached allowing it to purchase the other key ZCCM assets as a single package. A prospective buyer is found for the Mufulira mine.
New lending instruments are agreed with the World Bank and IMF as a result of the memorandum of understanding signed between the Government/ZCCM and Anglo American. However, the release of funds is made conditional on conclusion of the deal and transfer of ownership.
1998 Sep – Private ownership stats less than 20%
Over two years after the privatization was announced, less than 20 percent of ZCCM’s operating capacity has passed into private ownership.
1998 – Rescue plan formulation
Anglo American formulates a rescue plan to repackage the unsold assets of ZCCM.