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.
Public Relations Manager
ZCCM Investments Holdings Plc
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.
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