ZESCO Limited has entered into a long-term agreement with Konkola Copper Mines (KCM) following successful conclusion of negotiations after the declaration of the supply and transmission lines on the Copperbelt as common carrier.

The agreement between ZESCO and KCM is part of ZESCO’s long-term strategy of correcting imbalances in the power supply chain, Zesco Director Strategy and Corporate Services Patrick Mwila has stated.

The artificial imbalances in supply were the result of the Bulk Supply Agreement signed between ZESCO and Copperbelt Energy Plc on November 21, 1997 that had been commercially disadvantageous to ZESCO and which expired on 31 March 2020.

“These imbalances were aided by certain clauses which ensured only CEC could supply the lucrative Copperbelt mining market ever since the BSA was signed in 1997.
It is also in line with the Government’s new policy framework, which supports an open Electricity Supply Industry (“ESI”) that is intended to encourage participation of various players in the three key segments of the value chain, i.e. Generation, Transmission and Distribution. The future is brighter for the electricity trade if new entrants are free to setup a power plant, negotiate for direct supply with any willing consumer and request and negotiate for the wheeling (or transportation) of their power with owners of infrastructure on commercial terms across all transmission and distribution lines as long as capacity is available, and regardless of the ownership,” Mr Mwila stated.

“By eliminating monopolistic tendencies, the Zambian electricity sub-sector will soon realize efficiencies, as neither ZESCO nor any other owner of Transmission or Distribution Infrastructure can claim exclusivity for their use as third parties will be able to supply power across Zambia. ZESCO welcomes this competitive environment and the opportunity to prove that it can compete on a level playing field with the best competitors in the market.
Specifically, ZESCO is now in a position to compete for the supply of power directly to those mining consumers in the Copperbelt who are able and willing to enter into new commercial relationships. Supply to such consumers was previously the preserve of CEC, but with the lapse of the BSA, the consumers, ZESCO and CEC are free to buy and sell power from anywhere and supply to anyone as long as the terms are commercially competitive.”

Source: https://zambiareports.com/2020/06/08/zesco-kcm-sign-binding-power-supply-deal/

ZESCO Limited has entered into a long-term agreement with Konkola Copper Mines following successful conclusion of negotiations, says director strategy and corporate services Patrick Mwila.

In a statement yesterday, Mwila stated that the agreement between Zesco and KCM was part of the power utility’s long-term strategy of correcting imbalances in the power supply chain.

According to Mwila, the artificial imbalances were the result of the Bulk Supply Agreement that was signed between Zesco and Copperbelt Energy Corporation on November 21, 1997 which had been “commercially disadvantageous to Zesco” and which expired on 31 March 2020.

Mwila stated that the imbalances were aided by certain clauses that ensured only CEC could supply the lucrative Copperbelt mining market ever since the BSA was signed in 1997.

“It is also in line with the government’s new policy framework, which supports an open Electricity Supply Industry that is intended to encourage participation of various players in the three key segments of the value chain, i.e. Generation, Transmission and Distribution. The future is brighter for the electricity trade if new entrants are free to setup a power plant, negotiate for direct supply with any willing consumer and request and negotiate for the wheeling (or transportation) of their power with owners of infrastructure on commercial terms across all transmission and distribution lines as long as capacity is available, and regardless of the ownership,” according to the statement.

“By eliminating monopolistic tendencies, the Zambian electricity sub-sector will soon realise efficiencies, as neither Zesco nor any other owner of transmission or distribution infrastructure can claim exclusivity for their use as third parties will be able to supply power across Zambia. Zesco welcomes this competitive environment and the opportunity to prove that it can compete on a level playing field with the best competitors in the market.”

Mwila stated that specifically, Zesco was now in a position to compete for the supply of power directly to those mining consumers in the Copperbelt that were able and willing to enter into new commercial relationships.

He stated supply to such consumers was previously the preserve of CEC.

“…but with the lapse of the BSA, the consumers, Zesco and CEC are free to buy and sell power from anywhere and supply to anyone as long as the terms are commercially competitive. Zesco also notes that under these circumstances, Zesco’s traditional consumers may also be subject to competitive bids or solicitations from other potential suppliers, but we firmly support the new market framework and we are ready to prove that we can supply power more competitively than anyone else in the Southern African region,” Mwila stated.

“The agreement between Zesco and KCM confirms Zesco’s and the Government of Zambia’s commitment to supporting the whole of Zambia’s mining sector and to ensuring supply of all consumers in the Copperbelt.”

Mwila hailed the development as a “landmark agreement for Zesco and Zambia as a whole” that ensures that Zesco, Zambian economy and by extension, the Zambian public were able to benefit from direct commercial agreements between the utility and potential generators of foreign exchange.

He stated that the “common carrier” declaration typically unlocks resources and avoids “hoarding” of transmission capacity or even worse, duplication of infrastructure by competing players in the ESI.

“Transmission and distribution asset owners still remain fully in charge of their assets, but they must negotiate wheeling arrangements on commercial terms once they are approached by parties intending to trade. The law thus prevents any party from using its vantage point to block commercial trade and stipulates that if the parties fail to agree on wheeling terms for the power, any aggrieved party may then appeal to the Electricity Regulation Board to arbitrate and determine fair terms and conditions of supply,” Mwila stated.

And Mwila stated that despite initial failure to finalise a new power supply agreement to replace the now expired BSA with CEC, Zesco continues to make power available to CEC to allow it to continue supplying its consumers who have already contracted for power supply and to supply Zesco’s existing consumers in the Copperbelt.

“This is despite the fact that CEC continues to owe Zesco millions of dollars in unpaid arrears under the recently expired Bulk Supply Agreement,” stated Mwila.

 Source: https://www.themastonline.com/2020/06/07/zesco-announces-long-term-power-supply-agreement-with-kcm/

ZESCO Limited has entered into a long-term agreement with Konkola Copper Mines-KCM following successful conclusion of negotiations that have corrected the imbalances in the power supply chain.

ZESCO Limited Director for Strategy and Corporate Services Patrick Mwila says the artificial imbalances were as a result of the Bulk Supply Agreement that was signed between ZESCO and Copperbelt Energy Plc -CEC- on November 21, 1997.

Mr. Mwila says this had commercially disadvantaged ZESCO before it expired on March 31 2020.

He has however assured the nation that the future of electricity trade in the country is bright following the correction of the imbalance in the supply chain.

And Mr. Mwila says by eliminating monopolistic tendencies, the Zambian electricity sub-sector will soon realize efficiencies because neither ZESCO nor any other owner of Transmission or Distribution Infrastructure can claim exclusivity rights for their use as third parties will be able to supply power across Zambia.

He says ZESCO welcomes the competitive environment and the opportunity to prove that it can compete on a level playing field with the best competitors on the market.

Mr. Mwila says ZESCO is now in a position to compete favorably for the supply of power directly to the mining consumers on the Copperbelt who are able and willing to enter into new commercial relationships which was previously the preserve of -CEC-.

He further explained that with the lapses of the agreement the consumers, ZESCO and CEC are free to buy and sell power from anywhere and supply to anyone as long as the terms and conditions are commercially competitive.

Mr. Mwila adds that the new agreement between ZESCO and KCM confirms ZESCO and Government’s commitment to supporting the whole of Zambia’s mining sector and to ensuring supply to all consumers on the Copperbelt.

He said this in a statement released to ZNBC Business News in Lusaka today.

 Source: https://www.znbc.co.zm/news/zesco-kcm-forge-partnership/

Kansanshi mining company PLC has partnered with civil society organizations in Solwezi district to work together in providing  sustainable development to foster community wellbeing in the district. 

Kansanshi mining company PLC public relations manager, Godfrey Msiska says his mining firm  has collaborated with civil society organizations to improve the standard of living of Solwezi residents. 

ZANIS report Mr Msiska in an interview said this partnership will ensure that residents in the district will be self-reliant even after the mines are done with their operations. 

Meanwhile, civil society organizations representative, Cranes Kasito said the new relationship with the mines shall benefit all stakeholders and improve capacity building initiatives offered to the community. 

Mr Kasito added that the collaboration will guarantee clear communication strategies that will help the community understand what the mines are doing for them. 

He said this in a communique presented during a two day dialogue platform held in Solwezi today, under the theme “joint action for sustainable development”.

Source: https://theglobeonline.news/uncategorized/kcm-partners-with-civil-society-for-sustainable-livelihoods-in-solwezi/

Lusaka Securities Exchange indigenous financial institutions, Investrust Bank Plc, is in the market for K400.5mln ($22.3mln equivalent) for capitalization purposes. According to a Stock Exchange News – SENs update Investrust Bank (ISIN:ZM0000000235 – ‘INVESTRUST’) will have an extraordinary general meeting on the 05 June 2020 to pass resolution to approve the raising of K400,497,909.75 through a 5 for 1 renounceable rights offer through issuance of 40,825,475 K1 par value ordinary shares at a value of K9.81 per share to shareholders on record date. This was according to a notice issued by the bank signed by its Company Secretary Brian Msidi.

Within a space of three years INVESTRUST has been on a series of capitalization transactions ranging from debt injection from Meanwood Venture Capital Ltd in exchange for preference shares, a rights issue which was undersubscribed deeply thereby triggering an application for a mandatory offer by ZCCM-IH pushing the investment vehicles stockholding to 71.4%. The sanguine intent to capitalize signals solvency and liquidity concerns the local bank has grappled with.

Negative jaws. Investrust currently grapples with ‘negative jaws’ and has been on a loss streak which has resulted in erosion of capital necessitating the urgent need for the board to effect recapitalization. The indigenous bank is renowned for having financed the famous, now defunct Zambian Airways whose debt serviceability strains dented the banks financial strength. At a time when the LuSE listed FI sought to raise capital following the 2012 capital adequacy model for local and international banks which the Zambian central bank had effected in Dr. Michael Gondwe’s era as governor, Investrust got an injection from state mining investment vehicle ZCCM-IH, through a rights issue, whose shareholding soared to 71.4% in the bank. The Industrial Development Corporation – IDC company ZCCM-IH exposure to the banking sector continues to raise concerns on the viability of the investment decision whose net present value remains underwater.

For two consecutive quarters INVESTRUST has exhibited inertia is publishing its prudential financial results timely as losses widen. The bank has since suffered loss of key staff in its C- suite which many have deemed reorganization of management quality as the bank repositions itself.

Illiquidity and Bourse eligibility. Investrust stock has for over a year not traded actively on the LuSE due to illiquidity. As the Securities and Exchange Commission – SEC requires for entities to demonstrate 3 years of consecutive profitability as a key requirement for listing, the markets are left wondering why ISIN:ZM0000000235 has not been delisted from the exchange after half a decade of losses. If capital markets are to earn the confidence they require from a corporate governance to profitability standard perspective, the regulator is required to revisit eligibility of entities for worthiness of being on the bourse.

As at 10.24pm Investrust shares were priced at K12 a share.

Source: https://thebusinesstelegraph.com/2020/06/03/investrust-bank-plc-in-the-market-for-22mln-capital/

Minister of Finance Bwalya Ng’andu has said that the government has restarted negotiations with Mopani Copper Mines Plc to find a solution that will avoid the mine being placed under care and maintenance.

Dr Ng’andu said that it is not the desire of the government to close the mine but find solutions to sustain operations beyond 90 days.

The Minister is leading a delegation which includes Minister of Mines and Minerals Development Richard Musukwa, Minister of Labour Joyce Simukoko, Minister of Energy Mathew Nkhuwa, and Copperbelt Minister Japhen Mwakalombe.

Speaking when he met Mine Unions and Mopani Copper Mines officials, Dr. Ng’andu said President Edgar Lungu has sent the team to discuss how best operations can continue running while being mindful of the challenges the mining firm is going through.

He is hopeful that discussions will center around continuing operations beyond 90 days as applied for by Mopani Copper Mines Plc to place the mine on care and maintenance.

Meanwhile, Mr. Musukwa said the government wants Mopani to structure a surviving model and engage local contractors as opposed to foreigners with a top cost profile.

Mr. Musukwa said engaging local contractors will help Mopani to deal with some of its challenges adding that the government remains open to dialogue to find a win-win situation.

And Mineworkers Union of Zambia President Joseph Chewe said Unions will not allow Glencore to close the mine and should they decide to do so they should be asked to leave.

Mopani Copper Mines Plc Acting Chief Executive Officer Charles Sakanya said the mine is faced with challenges among them VAT refunds.

The delegation is on the Copperbelt to find solutions to the challenges at Mopani Copper Mines Plc, Chambishi Metals, NFCA, Copperbelt Energy Corporation CEC, and Lubambe.

Source: https://www.lusakatimes.com/2020/05/18/283199/

METOREX Limited a company running Chibuluma Copper Mines has informed government of its intentions to place its operations on care and maintenance.

Mines Minister Richard Musukwa confirmed this in Kitwe, but said Government would not allow the mine to send people on the streets.

He said the reasons given by Metorex had nothing to do with the Covid-19 but with its depleted resources.

“Yes Metorex has informed government. But the reasons for placing the mine on care and maintenance have nothing to do with covid-19, but something to do with depleted resources. As government we have opened discussions with Metorex to avoid sending people on the streets,” said Musukwa.

And over 400 miners at Lubambe Copper Mines in Chililabombwe have lost their jobs after the mine terminated the contract of Redpath.

But Musukwa asked Lubambe Copper Mines to put the interest of the workers first before its dispute with Redpath.

“Lubambe as a parent company should protect the interest of the workers while they have a dispute with Redpath. In this critical time mining companies are reducing the cost profile not workers. We don’t want the mines to use workers as the sweeping rock under these critical times. Lubambe, Metorex and Mopani should protect the workers,” he said.

Musukwa said the decision by Mopani to place its Kitwe and Mufulira mines on care and maintenance was an illegality.

He added that the 90 days notice given by Mopani Copper Mines is not meant to stop operations.

“We have noted that the mine had intended to put its mines on care and maintenance. But government takes great exception to such moves. We need to sit down and dialogue and provide a sustainable way of doing (things) during this critical time and ensure that the workers on the Copperbelt and North Western that their jobs are guaranteed and protected and ensure that Mines are sustained.”

“So the Ministers of Finance, Mines and Labour will be on the Copperbelt to ensure that this is done well. We also welcome Zambians that will come on board with information that will help the sector navigate during this time are welcome to provide information. What we want as government is to be inclusive and allow a broad spectrum of Zambians to be involved as we structure forward during this critical time,” said Musukwa.

“One key element is to ensure that Mopani reduce its operating cost. We would like to speak survival modes and it is to use local contractors who are at low cost. The 90 days notice is not meant to stop operations. It is meant to ensure that a survival mode is structured, that is in the spirit of the law.”

Source: https://diggers.news/business/2020/05/18/chibuluma-to-go-on-care-and-maintenance/