Ndola Lime Company

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Invitation for Bids – HFO

LIMESTONE RESOURCES LIMITED

Incorporated in the Republic of Zambia

Invitation for Bids (IFB)

Supply and Delivery of Heavy Fuel Oil (HFO) to Limestone Resources Limited of Ndola, Copperbelt Province

ONB No.: LRL/001/2021

  1. Limestone Resources Limited (LRL) using financing from own sources (budgeted LRL Operating Expenditure (OPEX) for the 2021 Financial Year), intends to apply part of the funds for payments under the Contract for the Supply and Delivery of Heavy Fuel Oils (HFO) to Limestone Resources Limited of Ndola, Copperbelt Province; Contract: LRL/001/2021.
  2. Limestone Resources Limited “LRL” is a ZCCM Investments Holdings Plc (ZCCM-IH) wholly-owned subsidiary and is located in Ndola District, Copperbelt Province.
  3. It is against this background that Limestone Resources Limited now invites sealed bids from eligible and qualified bidders for the Supply and Delivery of HFO to Limestone Resources Limited of Ndola, Copperbelt Province; Contract No.: LRL/001/2021. The HFO to be delivered to Limestone Resources Limited of Ndola, Copperbelt Province.
  4. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is open to all bidders from Eligible Source Countries as defined in the Bidding Documents. The following CEEC preferential treatment shall be applied as part of the evaluation:

4.1 Citizen-influenced company – 4%

4.2 Citizen-empowered company – 8%

4.3 Citizen-owned company – 12%

  1. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday
  2. Qualifications requirements include:

(a)   Financial Capability.

The Bidder shall furnish documentary evidence that it meets the following financial requirement(s):

      1. A minimum amount of liquid assets and/or credit facilities of ZMW1,760,000.00

(b)     Experience and Technical Capacity.

The Bidder shall furnish documentary evidence to demonstrate that it meets the following experience requirement(s): Carried out at least two (02) contracts of a similar nature and scope in last one (01) year.

  1. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00). The method of payment will be through bank transfer.

          Account type: CORPORATE CURRENT ACCOUNT.

          Account currency: ZMW – ZAMBIAN KWACHA.

          Sort code: 040103 BANK STATEMENT / TAX INVOICE

          Account number: 9130004314402

 

  1. The address referred to above is:

Head of Procurement
Limestone Resources Limited
P.O. Box 70057, Plot 1523
Depot Road Cleveland Park
Ndola, Zambia  

E-mail: ASakala@lrl.co.zm

  1. Bids must be delivered to the address below at or before 10:00 hours on Thursday, 06th September 2021. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 06h September 2021. All bids must be accompanied by a Bid Securing Declaration.
  2. The address referred to in clause 8 is:

Head of Procurement
Limestone Resources Limited
P.O. Box 70057, Plot 1523
Depot Road Cleveland Park
Ndola, Zambia  

E-mail: ASakala@lrl.co.zm
Annual Report Summaries

Ndola Lime Company Ltd Extract from 2019 Annual Report

During the year, two former employees of NLC made an application to initiate Business Rescue Plan proceedings against the Company. An Interim Business Rescue Administrator
was appointed to run the affairs of NLC.

ZCCM-IH made an application in court challenging whether NLC qualifies to be put under Business Rescue Operations. The matter is still undergoing a court process.

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2019 of ZMW74.3 million (2018: ZMW60.1 million) and a loss after tax of ZMW234 million (2018: ZMW 187 million loss).

There were no dividends declared during the year under review (2018: Nil)

Download Full Report

 

Investee Company News, Press Releases, ZCCM-IH News

ZCCM-IH | Press Statement on the status of Ndola Lime Company Limited

09 November 2018, Lusaka – ZCCM Investments Holdings Plc would like to dismiss and refute claims circulating on social media that Ndola Lime Company Limited (NLC) is being sold by ZCCM-IH. These claims are unfounded and false.

The position is that two former NLC employees applied to Court to place the company under supervision pursuant to the Corporate Insolvency Act No. 9 of 2017. By order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Rescue Administrator of NLC. ZCCM-IH is seeking legal redress regarding the aforementioned proceedings.

ZCCM-IH has over the past 10 years invested over K1 billion in NLC in form of debt and equity in an effort to turnaround the loss-making operations of the Company into profitability.

However, NLC has faced several challenges among these being technical, financial, market and human resource issues. The plant has been unable to produce to nameplate capacity because of failure to fully commission and optimise the new coal fired vertical kiln (“VK2”) due to technical factors.

In addition, the company has been reporting losses over the past seven years with a current debt stock standing at approximately K800 million.

ZCCM-IH remains committed to the affairs of NLC and will continue to pursue all activities that better the Company and ZCCM-IH’s investment. Part of this includes the consideration of engaging technical staff from NLC to work in the ZCCM-IH new Cement Plant in Masaiti, as the technical processes and operations are similar.

Issued by:
Loisa Mbatha-Kakoma
Public Relations Manager
ZCCM Investments Holdings Plc

-END-

NOTE TO THE EDITOR:

About ZCCM Investments Holdings Plc
ZCCM Investment Holdings PLC is an investment holding company in which Government holds directly about 17.25% shares through the Ministry of Finance and its 60.28% shares is held through the Industrial development Corporation (IDC) in Zambia, with the remaining 22.47% held by institutional and private individual shareholders. ZCCM-IH currently has an investment portfolio of 15 companies. Ndola Lime Company is one of the companies wholly owned by ZCCM-IH.

Contact: kakomal@zccm-ih.com.zm , +260211388000
Annual Report Summaries

Ndola Lime Company Ltd Extract from 2018 Annual Report

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2018 of K60.1 million (2017: K89.6 million) and a loss after tax of K190 million (2017: K1.1 billion loss).

Major contributors to the loss were the below budget sales figures, huge finance costs; and penalties on overdue statutory obligations totalling K100 million.

On 21st September 2017, NLC’s Vertical Kiln 2 (VK2) was engulfed in flames, an occurrence that damaged several components of the kiln, rendering it dysfunctional. VK1 underwent refurbishments to its refractory bricks but could not be fired up due to NLC’s lack of working capital, a situation that eventually led to production at the company grounding to a halt with only limited repacking activity going on.

Subsequent to the year end, two (2) former employees of Ndola Lime Company Limited (NLC) instituted proceedings to the High Court of Zambia to place NLC under supervision pursuant to the Corporate Insolvency Act No. 9 of 2017. By order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Administrator of NLC. The application for the Business Rescue Proceedings will be heard in January 2019 at which all affected persons (including ZCCM-IH) will be heard. However, ZCCM-IH remains committed to the affairs of NLC and will continue to pursue all activities that better the Company and ZCCM-IH’s investments.

There were no dividends declared during the year under review (2017: Nil)
Annual Report Summaries

Ndola Lime Company Ltd Extract from 2017 Annual Report

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2017 of K89.6 million (2016: K196.6 million) and a loss before tax of K1,163 million (2016: K82.3 million loss).

Major contributors to the loss was lower sales of 75.7% (K279.4 million) below budget, impairment of the plant amounting to K861 million, finance costs and penalties on overdue Zambia Revenue Authority (ZRA) tax obligations totalling K93.7 million.

Ndola Lime Company (“NLC”) has been working on optimizing a second vertical kiln (“VK-2”) to be powered by coal that will result in additional capacity of 500 tonnes per day. The primary objectives of the VK2 is to substitute the inefficient and out-dated operations of the Rotary Kiln and reduce operational expenses attributable to the use of Heavy Fuel Oil (“HFO”) through the use of coal. Following the perennial escalation in costs related to the Recapitalization Project (RP) and adverse financial performance from the latter half of 2013 onwards, owing to a myriad of factors including significant escalations in the price of HFO, loss of market share, ZCCM-IH resolved to finance the completion of the RP which has cost about $105 million to date. The hot commissioning of the project started in December 2015. However, the commissioning of the project has been met with a lot of challenges.

There were no dividends declared during the year under review (2016: Nil).
Annual Report Summaries

Ndola Lime Company Ltd Extract from 2016 Annual Report

Ndola Lime Company Limited (NLC) reported total revenues for the financial year ended 31st March 2016 of K196.6 million (2015: K195.7 million) and a loss after tax of K86.3 million (2015: K17.7 million).

The company’s results during the year were affected by reduced sales margins, prolonged run of the inefficient rotary kiln, year-end inventory adjustments, additional depreciation charges arising from the commissioned new plant and exchange losses.

ZCCM-IH continued to provide financial support towards the completion of the Ndola Lime Recapitalisation Project. During the year an additional shareholder loan of K28.7 million (US$2.82 million) was provided. The project is expected to increase the company’s production volume at a reduced unit cost of production by using alternative cheaper fuel and is still undergoing hot commissioning.

The conversion of the ZCCM-IH shareholder loans into equity amounting to K659 million significantly improved NLC’s gearing.

There were no dividends declared during the year under review (2015: nil).