Minister of Finance Dr. Bwalya Ng’andu says his ministry will remain optimistic that ZCCM-IH will play a critical role in harnessing the gold potential for the benefit of the country.
Speaking during the Dividend Cheque Handover at the Ministry of Finance Headquarters, Dr Ng’andu said the formation of the ZCCM Gold Company Limited will see more proactive participation in the investments to be undertaken throughout the gold value chain in the country.
He added that Government, through the Bank of Zambia has identified purchase of gold as one of the mechanisms to enhance the country’s international reserves.
“It is envisaged that with ZCCM-IH’s investment in this sub sector, we should be able to achieve this objective. I am informed that there are obout 21 known gold occurrence areas around the country that are yet to be exploited,” Dr Ng’andu said.
“As a Ministry and shareholder, we will give all the necessary support to the endeavours of the ZCCM Gold Company in harnessing the gold potential in the Country,” Dr Ng’andu said.
The Minister observed that being a shareholder of 17.23% stake in the company, ZCCM-IH has continued to create value in its investments, in order to sustain its growth and maximize shareholder value.
The Minister is happy that ZCCM-IH has been consistent in delivering returns to its shareholders for the past few years.
He commended the company for its efforts and hard work in keeping the Company on a profitable trajectory thereby making it possible for the company to contribute to the treasury through both and non-tax revenues.
“I am aware that ZCCM-IH has continued to make selected strategic investments which will undoubtedly contribute to job creation and sustained economic growth. The company, through Kabundu Resources Limited is expected to commence production of manganese in Serenje District, Central province before the end of June, 2020. ZCCM-IH, through consolidated Gold will begin gold processing in Rufunsa District before the end of June, 2020,” he said.
The Minister implored other state owned companies to emulate ZCCM-IH.
He said it is important that state owned companies, especially those whose performance is not satisfactory, pursue more aggressive reforms and strategies that will turn them to profitability and cease to be burden on the treasury.
He assured them that Government will remain supportive of such reforms.
At the same event, ZCCM-IH Chief Executive Officer Mabvuto Chipata said the company remains focused on continuing to create value and portfolio growth.
“We will continue to play strategic role in the growth of this sector and its contribution to the country’s revenue particularly in other Minerals such as gold cobalt, manganese and gemstones among others,” said Mr. Chipata.
He said the company wants to reduce its risk exposure on depending on copper as well as drive portfolio growth in order to sustain the delivery of a fair return on investment for all its shareholders.
In the last Annual General meeting ZCCM-IH shareholders approved a total dividend payout of K53million.
The Company made a profit of K448 million which was largely driven by an increase of 155% in revenue.
In 2019 alone the company increased stakes in Kariba minerals and Copperbelt Cooperation.
Source: Tech Watch News