KCM Employs 100 Workers on Permanent Basis

By JOHN SAKALA
Konkola Copper Mines has migrated 101 people from fixed term contract workers to permanent and pensionable employment.

Those migrated are employees at the Tailings Leach Plant (TLP) and Nchanga Concentrators in Chingola, as part of reorganization currently taking place to improve operations.

KCM Provisional Liquidator Milingo Lungu said KCM conducted employment interviews with an intention to employ over 100 operators in the processing plants at Nchanga Business Unit in Chingola.

Mr Lungu said the current conversion of contract workers to permanent employees follows another recruitment conducted in October 2019, when 64 contract workers were converted to full-time employees, specifically for the Konkola deep underground mine dewatering works.

He said the new entrants on the job market will replace most of employees who have retired or left the company for other reasons in the last few months.

Since the announcement of the liquidation on May 21, 2019, the Provisional Liquidator and the KCM management have placed higher on the priority list the employment of new job entrants in order to empower Zambians with employment, whenever there are employment vacancies.

KCM has set its eyes on rejuvenating the company to ensure it continues to occupy its place as a major industry player and make a significant contribution to the growth of the mining sector and the economy of Zambia.

Source: The Independent Observer

Zambia’s KCM smelter set to restart after two-week delay – minister

LONDON, Nov 26 (Reuters) – Zambia’s Konkola Copper Mines (KCM) smelter could restart next week after a delay of around a fortnight, mines minister Richard Masukwa told Reuters.

The smelter was shut down in early October for annual maintenance, two days earlier than planned due to a leak. It was initially scheduled to reopen on Nov. 15.

“This week we are testing and I hope that next week (the smelter) will be up and running,” Masukwa said on the sidelines of the London Mines and Money conference.

He did not elaborate on the reason for the delay to the restart of the smelter, which has a capacity of 311,000 tonnes.

KCM is the local unit of Mumbai-listed Vedanta, which owns about 80% of the company.

Vedanta has been locked in a dispute with the Zambian government since May when Lusaka appointed a liquidator to run KCM, which is 20% owned by Zambia’s state mining company ZCCM-IH. Zambia accused KCM of breaching the terms of its licence, an accusation the company has denied.

An arbitrator has been appointed to settle the dispute and both sides are negotiating dates for official proceedings, Vedanta executive Deshnee Naidoo told Reuters on Monday. (Additional reporting by Barbara Lewis; Editing by Pravin Char)

Negotiations with potential KCM buyers haven’t yet started – Musukwa

Mines Minister Richard Musukwa says government has not started any negotiations with any potential buyer of Konkola Copper Mine (KCM) Plc’s assets.

Musukwa explained that there had been no steps to invite effective bids of the sale of KCM’s assets as the process would be done after the pending court clearance.

The Minister said this in Parliament, Tuesday, when he responded to a written question from Nchanga PF member of parliament Chali Chilombo, who wanted to know whether government was aware that the residents of Chililabombwe and Chingola were extremely anxious over the liquidation of KCM and if so, how far government had gone with the potential buyers of KCM’s assets.

“Madam Speaker, in recognizing the guidance and sanctity of the Judiciary, who are handling the matters concerning the liquidation process of Konkola Copper Mine, government has not started any negotiations with any potential buyer of KCM assets. However, KCM has been visited by several sections of international and local entities expressing interest following the announcement of the divorce process by Konkola Copper Mine and ZCCM-IH. There has been no steps to invite effective bids of the sale of the assets. This process will be done and has been reserved awaiting clearance from the courts of law, which we respect. The House may wish to know that the liquidation process is basically the first process before resolving the issues surrounding KCM. We have taken advice to ensure that the sale is done within the confines of the law and pursuant to a court order,” Musukwa said.

He insisted that there was no sale that would take place at KCM, which would undermine the integrity of the court process.

“In that regard, no sale will be undertaken that undermines the integrity of the court process, and as government, we understand that the due process of the law has to be followed and respected and we are committed to that effect. Madam Speaker, to this effect, I wish to state that the High Court proceedings, which are currently going on, are matters that the Government of the Republic of Zambia continues to respect because we are a government of laws,” Musukwa said.

And Musukwa said the decision to offload KCM was made on account of the deteriorating social and economic situation caused by Vedanta Resources’ mismanagement.

“Government is fully aware of the anxieties of residents of Chililabombwe and Chingola over the future of KCM. The House may wish to know that residents of Chingola and Chililabombwe started raising concerns over the future of KCM way before the commencement of the liquidation process. The action Zambia Consolidated Investment ZCCM-IH took was on account of deteriorating social and economic situation caused by mismanagement of KCM by Vedanta. If left unchecked, it would have spelt catastrophe for the residents of Chililabombwe and Chingola and the entire Copperbelt,” said Musukwa.

“Government also has a duty to safeguard its citizens and the actions were taken in that context. The ultimate aim of ZCCM-IH instituting the liquidation process was to secure an investor who would develop the mine to its full potential guaranteeing the much-needed jobs and business opportunities on the Copperbelt in particular, Chingola, Chililabombwe and other peripheral areas.”

ZCCM -IH: Konkola Copper Mines Plc Further Cautionary Announcement

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) are referred to the announcement dated Wednesday 23rd May 2019, in which they were advised that ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines Plc on 21st May 2019. ZCCM-IH filed the said petition pursuant to section 56 (1) (c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr. Milingo Lungu of Lungu Simwanza & Company was appointed as provisional liquidator.

On 3 July 2019, Vedanta Resources Limited (“Vedanta”) obtained an Order of Court to commence legal proceedings against ZCCM-IH in the High Court of South Africa. By Notice of Motion dated 3 July 2019, Vedanta seeks to stay the liquidation proceedings in Zambia and to have the powers of the liquidator discharged.

ZCCM-IH will provide details of these proceedings in due course.

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

By Order of the Board
Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 15th July 2019

ZCCM -IH | Konkola Copper Mines Plc Further Cautionary Announcement

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”) are referred to the announcement dated Wednesday 23rd May 2019, in which they were advised that ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines Plc on 21st May 2019. ZCCM-IH filed the said petition pursuant to section 56 (1) (c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr. Milingo Lungu of Lungu Simwanza & Company was appointed as provisional liquidator.

On 3 July 2019, Vedanta Resources Limited (“Vedanta”) obtained an Order of Court to commence legal proceedings against ZCCM-IH in the High Court of South Africa. By Notice of Motion dated 3 July 2019, Vedanta seeks to stay the liquidation proceedings in Zambia and to have the powers of the liquidator discharged.

ZCCM-IH will provide details of these proceedings in due course.

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

By Order of the Board
Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 15th July 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 23 May 2019

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.

KCM Restructuring On

KONKOLA Copper Mine (KCM) liquidator Milingo Lungu has started restructuring the mine with Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH) technical manager Moses Chilambe being appointed as head of the business unit in Chililabombwe.
Minister of Mines and Minerals Development Richard Musukwa said the liquidator wants the mine to have a team of competent people to take it to the next level.https://epaper.daily-mail.co.zm/

ZCCM-IH | Cautionary Announcement

In accordance with the requirements of the Lusaka Securities Exchange Listings Rules (“LuSE Listings Rules” or the ”Rules”), shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH” or the “Company”) are advised that ZCCM-IH has on 21 May 2019 filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines Plc. ZCCM-IH has filed the said petition pursuant to section 56 (1) (c) of the Corporate Insolvency Act No. 9 of 2017. By Order of the Court, Mr Milingo Lungu of Lungu Simwanza & Company has been appointed as provisional liquidator.

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

By Order of the Board

Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on 23 May 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 23 May 2019

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…

Zambia’s copper production rises to 861,946 tonnes in 2018

Zambia has recorded a marginal increase in its copper production for 2018 to around 861,946 metric tonnes from 799,329 tonnes recorded in 2017, boosted by First Quantum Minerals’ (FQM) operations in Kalumbila District.

But last year’s increased copper output still means that Zambia remains Africa’s second-biggest producer of the red metal, with the Democratic Republic of Congo (DRC) expected to hit over 1.2 million metric tonnes.

According to the official Ministry of Mines data, Zambia’s total copper production last year marginally rose to an estimated 861,946 tonnes from 799,329 tonnes recorded in 2017.

The total copper production included all of the country’s 10 large scale mining operations as well as small-scale mining operations, which accounted for at least 10,859 metric tonnes from the total tonnage.

Data reveals that although FQM’s Kansanshi Mining Plc recorded a marginal drop of 249,532 tonnes last year from 250,803 tonnes in 2017, its output in 2018 was the highest among all 10 mining companies in the country for a third successive year.

Additionally, Ministry of Mines Permanent Secretary Paul Chanda explained that FQM’s Sentinel Copper Mine in Kalumbila District produced record output of 223,655 metric tonnes, which helped contribute to Zambia’s overall copper production increase.

“The performance of the sector was better in 2018 relative to 2017. The increase in copper production is attributed to: i. The ramp-up in production at Kalumbila; ii. Improved plant availability and utilization at the Tailings Leach Plant at KCM coupled with higher grades; iii. Commissioning of the Synclinorium Shaft at Mopani in Kitwe has increased volume of ore being hoisted,” Chanda explained in a statement released, Wednesday.

Both Kansanshi and the Sentinel’s copper output last year constitute for 473,187 tonnes out of the country’s total production or nearly 55 percent from just two operations.

And 6 other mining companies equally recorded upward copper production output last year.

These included: Mopani Copper Mines, whose output hit 62,191 metric tonnes from 44,860 tonnes in 2017; Konkola Copper Mines (KCM), whose output rose to 93,165 tonnes last year from 84,436 tonnes in 2017; Chibuluma Mines, who recorded 11,258 tonnes in 2018 from 10,194 tonnes in 2017; CNMC Luanshya, whose output increased to 50,363 tonnes last year from 43,206 tonnes in 2017 and Sino Metals, who recorded 9,312 tonnes from 7,100 tonnes, while Lubambe’s copper production hit 22,074 tonnes from 18,037 tonnes during the period under review respectively.

On the other hand, Barrick Gold’s Lumwana Copper Mine saw its output fall to 101,890 tonnes last year from 116,170 tonnes in 2017, while NFCA recorded 27,644 tonnes down from 27,706 tonnes during the period under review respectively.

But Zambia’s increased 2018 copper production still means that the country remains Africa’s second-biggest producer of the red metal, with the DRC expected to hit over 1.2 million metric tonnes.

The DRC first managed to surpass Zambia as the continent’s biggest copper producer after that country managed to produce over 900,000 metric tonnes of copper in 2013, registering a sharp rise and surpassing Zambia’s 754,916 tonnes produced that year.

Source: News Diggers