Investee Companies

Investee Companies

Continued Stakeholder Engagement Key to the Success of Mopani-ZCCM

ZCCM Investments Holdings (ZCCM-IH) has continued to engage various stakeholders past the close of the Transaction on 31st March 2021 to acquire the 90% shares in Mopani Copper Mines.

One of the key stakeholders engaged is the Association of Mine Suppliers and Contractors.

During a meeting held in Lusaka the Association of Mine Suppliers and Contractors President Augustine Mubanga praised ZCCM-IH for taking a bold step in acquiring the 90% shares on behalf of the Zambians.

Mr Mubanga said that the move has immense economic and social benefits for the country as the mine is still viable, and believes ZCCM-IH will help drive mineral beneficiation, industrialization and actualize the local content implementation for the greater benefit for citizens.

He also presented a number of key issues that ZCCM-IH working with the Mopani Board and management need to look into, to ensure transparency in the procurement process at Mopani.

And ZCCM-IH Chief Executive Officer Mabvuto Chipata has reiterated the Company’s commitment to ensure that the procurement process is reviewed and that all key stakeholders will be engaged in this process.

Mr Chipata siad that priority for now is to ensure operations at Mopani are stabilized and production is increased.

 

Source: https://tiozambia.com/continued-stakeholder-engagement-key-to-the-success-of-mopani-zccm/

 
 
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Zambia: Continued Stakeholder Engagement Key to the Success of Mopani Copper Mines Plc.

ZCCM Investments Holdings Plc (ZCCM-IH) has continued to engage various stakeholders past the close of the Transaction on 31stMarch 2021 to acquire the 90% shares in Mopani Copper Mines Plc (Mopani) previously held by Carlisa on behalf of Glencore and First Quantum Minerals. One of the key stakeholders engaged is the Association of Mine Suppliers and Contractors.

During a meeting held in Lusaka yesterday, the Association of Mine Suppliers and Contractors President Augustine Mubanga praised ZCCM-IH for taking a bold step in acquiring the 90% shares on behalf of the Zambians. Mr. Mubanga states that the move has immense economic and social benefits for the country as the mine is still viable, and believes ZCCM-IH will help drive mineral beneficiation, industrialisation and actualise the local content implementation for the greater benefit for citizens.

He further presented a number of key issues that ZCCM-IH working with the Mopani Board and management need to look into, to ensure transparency in the procurement process at Mopani.

In response, ZCCM-IH Chief Executive Officer Mabvuto Chipata has reiterated the Company’s commitment to ensure that the procurement process is reviewed and that all key stakeholders will be engaged in this process. Mr Chipata states that priority for now is to ensure operations at Mopani are stabilised and production is increased.

Left to right: Brian Musonda, ZCCM-IH Chief Investments Officer; Augustine Mubanga Association of Mine Suppliers and Contractors President; Mabvuto Chipata, ZCCM-IH Chief Executive Officer and George Jere General Secretary of the Association

Source: https://miningconstruction-sadc.com/zambia-continued-stakeholder-engagement-key-to-the-success-of-mopani-copper-mines-plc/
Annual Report Summaries, Investee Companies

Misenge Environmental and Technical Services Limited (METS) Extract from 2021 Annual Report

Misenge Environmental and Technical Services Limited (METS) generated a total of ZMW17.11 million in revenue for the year ended 31st December 2021 (2020: ZMW24.49 million). METS reported a net profit of ZMW2.51 million (2020: ZMW3.12 million). 

During the period under review, METS continued the implementation of its Strategic Turnaround and Marketing Plan. Though the Company remains undercapitalised, METS has maintained profitability over the majority of the 12 months. Management has also made steady efforts to raise capital for equipment and develop non-ZCCM-IH business relationships for the formation of strategic alliances and partnerships in the provision of environmental services. 

There were no dividends declared during the period under review (December 2020: Nil) 
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ZCCM IH Signals Intention to continue with KCM Appeal Process

ZCCM IH has advised shareholders that it intends to appeal against the decision of the Court of Appeal and to stay the judgment in the matter relating to KCM, according to a statement from the Company.

According to the statement, “Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcement dated 23 May 2019 concerning the following:

  • ZCCM-IH filed a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”), the appointment by the Court of Mr Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”).
  • The legal proceedings commenced on 2 July 2019 in the High Court of South Africa and applications made to the Zambian High Court by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”) to stay the liquidation proceedings and refer the matter to arbitration.

Shareholders are informed that the High Court of Zambia ruled against Vedanta on 7 August 2019. On 13 August 2019 Vedanta appealed to the Court of Appeal of Zambia against the decision of the High Court of Zambia which denied them their application to stay the liquidation proceedings and refer the matter to arbitration. The Court of Appeal on 20 November 2020 ruled in favour of Vedanta and stayed the liquidation proceedings and referred the matter to arbitration.

The statement issued by ZCCM IH Company Secretary Chabby Chabala further stated that “ZCCM-IH will provide details on this matter, as it progresses, in due course”.

Source: http://fizambia.com/zccm-ih-signals-intention-to-continue-with-kcm-appeal-process/
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ZCCM Investments Holdings (Zambia) – EGM Resolutions & Completion of Transaction

1. Introduction
Shareholders are referred to the cautionary announcements released on the Stock Exchange News Service (“SENS”) of the Lusaka Securities Exchange (“LUSE”) on the 9th of March 2021 and the announcements by ZCCM-IH released on SENS on 21st December 2020, 8th January 2021 and 20th January 2021 regarding the acquisition of the 90% stake not currently held by ZCCM-IH in Mopani Copper Mines Plc (“Mopani”) (“the Transaction”). The Company distributed a Transaction circular (the “Circular”) on the 9th of March 2021 incorporating a notice of Extraordinary General Meeting (“EGM”) to consider the Transaction. The Board of Directors of ZCCM-IH (“the Board”) is pleased to provide a further update in relation to the Transaction.

2. Results of the General Meeting
At the EGM of ZCCM-IH held virtually on Tuesday, 30 March 2021 and hosted in Lusaka, Zambia,shareholders of ZCCM-IH (“Shareholders”) considered the resolution proposed at the EGM as set out below:

THAT the Transaction be and is hereby approved and the directors of the Company (the “Directors”) be and are hereby authorised to:

  1. do or procure to be done all such acts and things as they consider necessary, expedient or appropriate in connection with the Transaction and this resolution (including for the purpose of obtaining any approval, consent, clearance or permission that is a condition to the Transaction or that the Directors consider necessary or expedient); and
  2. to agree such modifications, variations, revisions, waivers or amendments to the terms and conditions of the Transaction (provided that such modifications, variations, revisions,waivers or amendments are not of a material nature), to any documents, and arrangements relating thereto, as the Directors may, in their absolute discretion, think fit.

The proposed resolution was approved by the Shareholders.

3.0 Completion of the Transaction
The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months.

Accordingly, the Cautionary Announcement in force since 4th September 2020 is hereby withdrawn.

By Order of the Board

Chabby Chabala

Company Secretary

Source: https://africanfinancials.com/zccm-investments-holdings-zambia-egm-resolutions-completion-of-transaction/
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RESULTS OF RESOLUTIONS PASSED AT THE EXTRAORDINARY GENERAL MEETING OF ZCCM INVESTMENT HOLDINGS PLC, COMPLETION OF TRANSACTION & WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

1.0 Introduction

Shareholders are referred to the cautionary announcements released on the Stock Exchange News Service (“SENS”) of the Lusaka Securities Exchange (“LUSE”) on the 9th of March 2021 and the announcements by ZCCM-IH released on SENS on 21st December 2020, 8th January 2021 and 20th January 2021 regarding the acquisition of the 90% stake not currently held by ZCCM-IH in Mopani Copper Mines Plc (“Mopani”) (“the Transaction”). The Company distributed a Transaction circular (the “Circular”) on the 9th of March 2021 incorporating a notice of Extraordinary General Meeting (“EGM”) to consider the Transaction. The Board of Directors of ZCCM-IH (“the Board”) is pleased to provide a further update in relation to the Transaction.

2.0 Results of the General Meeting

At the EGM of ZCCM-IH held virtually on Tuesday, 30 March 2021 and hosted in Lusaka, Zambia,

shareholders of ZCCM-IH (“Shareholders”) considered the resolution proposed at the EGM as set out below:

THAT the Transaction be and is hereby approved and the directors of the Company (the “Directors”) be and are hereby authorised to:

  1. do or procure to be done all such acts and things as they consider necessary, expedient or appropriate in connection with the Transaction and this resolution (including for the purpose of obtaining any approval, consent, clearance or permission that is a condition to the Transaction or that the Directors consider necessary or expedient); and
  2. to agree such modifications, variations, revisions, waivers or amendments to the terms and conditions of the Transaction (provided that such modifications, variations, revisions, waivers or amendments are not of a material nature), to any documents, and arrangements relating thereto, as the Directors may, in their absolute discretion, think fit.

The proposed resolution was approved by the Shareholders.

3.0 Completion of the Transaction

The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months.

Accordingly, the Cautionary Announcement in force since 4th September 2020 is hereby withdrawn.

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 31 March 2021

 

Source: http://fizambia.com/results-of-resolutions-passed-at-the-extraordinary-general-meeting-of-zccm-investment-holdings-plc-completion-of-transaction-withdrawal-of-cautionary-announcement/
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ZCCM-IH shareholders endorse 90% acquisition in Mopani

Shareholders in ZCCM-IH have overwhelmingly supported its acquisition of a 90% stake in Mopani Copper Mines (MCM).

Glencore agreed the sale of its majority stake in Mopani to ZCCM-IH in a $1.5 billion deal, the miner and trader said in January.

ZCCM-IH said in a statement that the extraordinary general meeting vote on the resolution was the last condition towards the completion of the transaction and ZCCM-IH now holds 100% ownership of Mopani.

The deal is funded by borrowings from Carlisa Investments Corp – a British Virgin Islands-based company through which Glencore holds its stake – and other members of the Glencore group.

ZCCM-IH Chief Executive Mabvuto Chipata said with increased ownership, ZCCM-IH would now be an active participant in the global industry as copper becomes a critical metal.

“Mopani will repay the remaining debt of $1.5 billion from its own cashflows and the repayment is expected to happen well within the remaining life of mine,” Mr. Chipata said.

ZCCM-IH has said it expects to find a new investor for Mopani by the end of the year as it looks to boost copper output from a little more than 34,000 tonnes to 150,000 tonnes.

Glencore said in a separate statement it would continue to retain offtake rights in respect of Mopani’s production.

“The Board is pleased to confirm that all the Conditions Precedent to the Transaction have now been satisfied, allowing for the completion of the Transaction on 31 March 2021. ZCCM-IH is now the holder of 100% of the issued shares in Mopani, transforming the Company from an investment company to owning and operating a multi-billion-dollar mining asset in Zambia. The Board looks forward to providing Shareholders with further updates on Mopani in the coming months,” the statement read.

 

Source: https://www.lusakatimes.com/2021/04/02/zccm-ih-shareholders-endorse-90-acquisition-in-mopani/
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Mopani Mine Acquisition Formalities Completed

Kennedy Bwalya-Government has announced that all the formalities for the total acquisition of Mopani Copper Mine by ZCCM-IH have been completed.
 
Mines Minister RICHARD MUSUKWA says ZCCM IH has been tasked to inject new capital and revamp all  production lines at the mine.
 
And Mr MUSUKWA says there has overwhelming interest from international firms seeking to become equity partners for ZCCM IH in running Mopani Mine.
 
He was speaking to ZNBC news in a telephone interview today.
 
And Mr MUSUKWA said government will strictly monitor the operations at Mopani to ensure total adherence to good corporate governance.
 
He said local contractors and suppliers will be prioritised in the award of contracts as a means of ensuring citizens benefit from their mineral wealth.
 
Mr MUSUKWA also said all qualified staff are assured of job security and management changes take effect.
 
He said the Mine will thrive through highest levels of professionalism and commitment.
 
Mr MUSUKWA said President EDGAR LUNGU wants citizens to fully benefit from their mineral wealth as the PF government usheres the country on a new economic trajectory where nobody is left behind.
 
ZCCM INVESTMENTS HOLDINGS PLC announced in January its plans to
buy Glencore’s stake in Mopani Copper Mine.
 
Glencore’s subsidiary Carlisa Investments Corporation later signed an agreement with ZCCM Investments Holding to transfer its 90% interest in Mopani Copper Mines to ZCCM IH
 
 ZCCM IH already holds a 10% stake in Mopani.
 
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Zambia’s Central Bank Shores up Gold Stocks by $15million in first Quarter

The central bank in Africa’s second largest copper producer has successfully shored its bullion reserves by K345.6 million (circa. $15 million) since yearend of 2020 to end of 1Q21. This initiative is supported by a gold purchase agreement signed with First Quantum Mining – Kansanshi Copper Mine and the state mining investment vehicle ZCCM-IH last year. Bank of Zambia opted to shore falling foreign exchange reserves buy stocking up with gold following recent discovery of the asset in key parts of Zambia. The red metal producers reserves have fallen to decade lows of $1.3billion weakening its import cover to less than 2.5 months leaving the Southern African nation vulnerable to external shocks.

In the period December 2020 to March 2021 the BOZ successfully shored its gold stock by 9,975 ounces (282.8 kgs) a cost of K345.6 million. Sixty nine percent of the purchases were from Kansanshi Copper Mining Plc at a cost of K241.8 million, while 30.7% (86.84 kgs) was from Zambia Gold company, a subsidiary of ZCCM – IH at a cost of K103.8 million.

Bank of Zambia Governor Mr. Christopher Mvunga looks on as First Quantum Mining Limited Director Operations Mr Rudi Badenhorst sign the Gold Purchase Agreement with the Central Bank in Lusaka 2020.

According to a press statement from the regulator, the Bank plans to purchase around 25,200-ounces of London Good Delivery gold from Kansanshi Copper Mining Plc and 21,000 ounces of dore gold with a minimum of 88% purity from Zambia Gold Company annually. These estimates are based on the gold purchase agreements signed with Kansanshi Copper Mining Plc and Zambia Gold Company in December, 2020. The central bank hinges viability and attractiveness of this the gold purchase venture in the local currency pricing which hedges against foreign exchange risk. The dore gold purchased from Zambia Gold Company will only reflect in international reserves after refining.

The purchase price of the commodity is not fixed and is determined by the London Bullion Market Association (LBMA). The LBMA, established in 1987, is the international trade association representing the global Over the Counter (OTC) bullion market, and defines itself as “the global authority on precious metals”.

Other interventions that the copper producer has in place to shore up reserves include dollarization of mining taxes paid directly to the central bank.

Source: https://thebusinesstelegraph.com/2021/04/22/zambias-central-bank-shores-gold-stocks-by-15million-in-first-quarter/
Annual Report Summaries, Investee Companies

Limestone Resources Limited (LRL) Extract from 2021 Annual Report

2021 was the first full calendar year of operations for Limestone Resources Limited (LRL), which only commenced operations on 1 September 2020 after transitioning from Ndola Lime Company Limited (NLC). NLC, remains under liquidation. 

As at December 2021, LRL was yet to be capitalised as ZCCM-IH was still running the process of engaging an equity partner with whom a long-term strategic plan for the Company would be developed. 

The lack of adequate capital posed a challenge and the Company underachieved across all performance metrics as production fell substantially below installed capacity due to reliability issues with the plant and equipment. Total sales revenue for the year was recorded at ZMW119.00 million (2020: ZMW34.76 million). The loss over the same period was ZMW39.78 million (2020: ZMW3.71 million). 

On 17 October 2021, LRL’s only functioning Kiln (VK1) experienced a collapse of its refractory bricks, leading to a halt in quicklime production. Since then, no production has been going on at LRL, pending financial resources for repair and maintenance works. 

ZCCM-IH has prioritized the selection and engagement process of an equity partner and is optimistic of completing the process within the first half of 2022 to ensure full recapitalisation of LRL that will substantially improve operational and financial performance. 

There were no dividends declared during the period under review (December 2020: Nil)