INVESTRUST BANK invests over K150m in digital platforms

INVESTRUST Bank PLC has invested over K150 million in the last four years in upgrading its digital platforms to service its customers better.

Bank managing director Simangolwa Shakalima said the bank moving into using digital platforms to try and serve its customers better and had in the last four years invested over K150 million in upgrading its platforms.
Mr Shakalima said the bank was now able to offer mobile banking services, internet banking and was the bank behind the Zamtel Kwacha programme.

He was speaking in an interview after he toured the Times Printpak Zambia Limited stand at the just-ended 91st Agriculture and Commercial Show held under the theme: “Promoting a Green Economy.”

“The concept of providing services 24/7 is incomplete without banking across various channels. We have invested over K150 million in the last four years to upgrade digital platforms to service customers better.

“We are now offering mobile banking, our internet banking system is one of the best, we are moving away from paper based transactions to more of electronic but also with those electronic transactions, we are bringing in convenience and accessibility,” Mr Shakalima said.

He said the bank had also embraced its reach by introducing what it was calling agency banking, which meant that it was no longer relying on its branches to offer banking services to its clients but the agents across the country for that purpose.

Mr Shakalima said currently the bank had close to 500 agents across the country and was in the next 18 months intending to get 1,500 more in places where the bank was not represented.

“So the agents will be offering basic services such as opening an account, depositing cash and withdrawing cash,” he said.

Investrust head of retail and business banking Geoffrey Ndama said the bank was committed to bringing improved accessibility to financing for small and medium enterprises through agents banking.

“We will come up with a product which is a card called ‘invest go’, the card is one of the money transmission elements that you can use.

“All you need to do is go to our branch to a machine and pay a K40 and buy a card, you can load cash on the card which is a visa-enabled card which you can use anywhere even abroad,” he said.


Source: TIMES

A Zambian success story

The 24-year nationalisation period (1973-1997), during which Zambia’s mining industry was in government hands, has left a noteworthy legacy – a reservoir of high-level mining skills that has served the country well.

One of the crowning achievements of that era was the formation of the University of Zambia’s School of Mines in 1973, which has turned out more than 1 000 graduates in mining engineering, geology, and metallurgy and mineral processing. In addition, the nationalised mining industry under Zambia Consolidated Copper Mines (ZCCM) sent large numbers of Zambians to study at leading universities overseas – not just in mining, but in related fields too. They brought back valuable skills which helped to build a solid intellectual foundation.

“The mining skill level of Zambia improved so much that later, when the mines were re-privatised, the new owners did not need to employ many expatriates,” according to a paper, Copper Mining in Zambia – History and Future, published in the journal of the Southern African Institute of Mining and Metallurgy (June 2016).

A 2014 study by the International Council on Mining and Metals (ICMM) found that the proportion of mining expatriates in Zambia is less than 2% of the industry workforce, compared to 8% in Peru and 17% in Tanzania.

Dr. Osbert Sikazwe, Dean of the School of Mines at the University of Zambia in Lusaka, says academic standards at the institution are high. “Our lecturers have studied at overseas universities. Our graduates hold their own, both in the mining industry and when they pursue post-graduate studies at international universities.”

Graduates of the School of Mines can be found in high-level careers, both in mining and academia, in countries as diverse as Finland, South Africa and Australia. Those prominent in Zambia include Dr. Pius Kasolo, CEO of government’s investment-holding company ZCCM-IH; Emmanuel Mutati, one-time CEO of Mopani Copper Mines; and Keith Kapui, Vice-President at Konkola Copper Mines (KCM).

The skills bequeathed to Zambia by the nationalised mining industry were a good beginning, but there was still much to do because the industry had been starved of investment and innovation for so long. Mining had moved on. The level of technology now coming on stream worldwide – and the higher level of skills needed to operate it – was at a whole different level.

So from 1997 onwards, the new investors in Zambia’s rundown mines poured billions of dollars into expansion, upgrading the technological base and starting new greenfield projects. As a natural consequence, they upgraded the skill base of the industry too. This was done very strategically, and has formed part of an ongoing process which continues to this day.

For example, Barrick Lumwana spends more than $100 000 a year on some 400 school and tertiary scholarships. Since 2007, KCM has offered around 500 scholarships, at school and university level, and has sent many students to top universities in Australia, India, Namibia and South Africa. Since 2005, First Quantum Minerals (FQM) has spent more than $50 million on a broad basket of initiatives which include scholarships, apprenticeships, and the construction and funding of trade schools.

“The focus on skills is a response to the growing sophistication of mining”
And in a bold initiative to train miners at the highest level, Mopani recently opened a $20-million technical training centre in Mufulira. It features world-class technology, including simulators, and will eventually receive students not just from other Zambian mines, but from other countries too. “You can’t just teach miners to pass exams,” says Lourens de Klerk, who heads the centre. “You also need practical, hands-on training where people learn to identify faults and handle unexpected situations. It is this which makes our school unique, even by international standards.”

The Zambian mining industry’s focus on skills is primarily a response to the rapidly advancing technological sophistication of the global industry. Like their international competitors, Zambia’s mines operate some of the world’s most sophisticated – and expensive – machinery and equipment. At FQM’s Sentinel Mine, for example, drivers learn to operate multimillion-dollar, 300-tonne haul trucks in state-of-the-art simulators which are able to mimic all kinds of weather, scenarios and driving conditions.

The growing technological sophistication of mining is one of the first things university graduates encounter. Dr. Sikazwe of the School of Mines explains: “While the intellectual base of our graduates is solid because of the quality of the teaching, they have to spend time on the job learning about the latest mining technology because they haven’t always been exposed to it. We would love to see more students accepted on internships before they graduate.”

Copperbelt University (CBU), in Kitwe, also has a School of Mines and Mineral Sciences, which was established in 2010. It offers not just degree courses, but also diploma programmes in areas such as mine ventilation, surveying and chemical technology.

Perhaps the biggest challenge facing local universities is that they depend on a cash-strapped Zambian government for funding. While this has less of an effect on the quality of teaching, it does affect the standard of laboratory equipment and technology – as well as the infrastructure, much of which is in need of refurbishment.

Outside help is always appreciated. The Dutch government recently funded a new boardroom at the School of Mines in Lusaka, as well as two scholarships at the University of the Witwatersrand in South Africa. Mines such as FQM, Mopani and KCM have financed library facilities, donated books, refurbished rundown infrastructure, sponsored student awards and accepted students on internships. Kagem Mining recently provided full scholarships to two geology undergraduate students, while Barrick Lumwana has been providing one scholarship a year to study mining engineering at Master’s level.

More than 40 years after the first wave of Zambia’s mining engineering students started graduating, the industry’s skill base has grown steadily. Today, it is one of the country’s competitive strengths. The challenges facing Zambia’s mining sector are well documented, but a lack of homegrown skills is not one of them.


Source:

Misenge constructs Chibalashi Dam in Mansa

The construction of Chibalashi Earth Dam at Chibalashi in Mansa District, Luapula Province at a total cost of about K7.4 million was undertaken by Misenge Environmental and Technical Services Ltd (METS).

Completed in January 2017, the project which was financed by the Zambian Government from a World Bank loan, was awarded to Intergrity Enterprises Limited, of Kabwe, by the Ministry of Water Development, Sanitation and Environmental Protection.

Intergrity subsequently subcontracted METS in 2016 to construct and manage the project in five months with the official contract commencement date of 8th July 2016 and the defects liability period of 12 months.

The scope of works included among other things; site clearing, river diversion works, excavation works for the core trench, the construction of dam embankments, excavation and construction of spillways with their associated structures, irrigation intake structures and canals and laying the low flow pipe.

Due to unfavourable weather conditions the contract was extended for 45 days and the project was finally completed on 17th January 2017.

The construction of Chibalashi dam will significantly boost agriculture and fisheries activities in the area throughout the year.

About Misenge

Misenge Environmental and Technical Services Ltd (METS) is a former Environment Department of the ZCCM Investments Holdings Plc (ZCCM-IH). Following the privatization of ZCCM Ltd and the transformation of the Company into ZCCM-IH the ZCCM Ltd Group Environmental Services (GES) was transformed into an Environmental Department.

In 2012, ZCCM-IH decided to transform the Department into a subsidiary Company – Misenge Environmental and Technical Services Ltd (METS).

METs offers the following services: environmental consultancy, radiation and safety Management, analytical services and engineering services.


METS – Constructs Chibalashi Dam in Mansa

Maamba Collieries plans to increase generation

MAAMBA Collieries Limited (MCL) is engaging key stakeholders in the mining industry on possibilities of increasing its thermal-generated power plant to 600 megawatts (MW) in view of the growing electricity demand in the country.

Last year, President Edgar Lungu commissioned the 300MW of power at MCL and connected to the national grid through Zesco Limited.

Company corporate affairs senior manager Mayford Chikoya said in an interview on Tuesday that under phase II, the coal-fired power plant will cost around US$850 million.
“We have started discussions with the mines for phase two of the project. A committee has been formed to look at all the necessary documentation for the construction of the phase two project.

“Construction of the phase two of the thermal power plant is expected to start early next year,” Mr Chikoya said.

The committee is composed of officials from MCL, Ministry of Finance, Energy and selected stakeholders that deal in electricity.

He said the company will source for financiers once documentation for the project is finalised soon.

Mr Chikoya said the construction of the power plant will not take long like the first phase because basic infrastructure is already in place.

“We will still use the same power lines running from the thermal power plant to Muzuma, same water pipe line and coal handling plant. The first phase is running smoothly… The project is expected to be commissioned end of this month and hopefully, the power plant will be stable,” he said.

Mr Chikoya, however, said constant supply of power is being affected by Zesco Limited as it is still upgrading its transmission lines from Muzuma power station to Kafue from 220-330 kilovolts.

He said because of the major works being undertaken by Zesco, the power plant is constantly cutting on supply.

Currently, MCL is producing 300MW of power, and 265MW is supplied to Zesco, while the remaining 35 is used for the thermal plant.


Source: Daily Mail

KCM pays ZCCM-IH $100 million

ZCCM-INVESTMENT Holdings (IH) has todate received US$47 million in payments to recover over US$100 million owed by Konkola Copper Mines (KCM). Last year, ZCCM-IH commenced legal proceedings against KCM Plc in the London Courts to recover over US$ 100 million it was owed after the court’s ruling that the latter pays ZCCM-IH.

ZCCM-IH chief executive officer Pius Kasolo said the two organisations which, continue to enjoy a cordial relationship, agreed on a payment plan and has been making payments from January to April.

“KCM paid US$20 million, US$22 million in February US$2.5 million in March and another US$2.5 million in April.

“Subsequent to the judgment ZCCM-IH and KCM agreed on a payment plan favourable for both parties in the interest of the business. KCM has since been making payments as agreed, and I must say we continue to work together as partners,” he said.

Dr Kasolo said ZCCM-IH remains committed to work closely with mining companies as they are partners in the development of the country and is confident about the fundamentals of the mining industry in general and those of copper.

“Overall, we will continue to grow our portfolio beyond mining and will further increase our foothold in the energy sector, agriculture sector and real estate so that the company continues to maximise shareholder value.

“We are focused on driving sustainable long-term growth and value creation in our investment portfolio,” Dr Kasolo said.


Source: Daily Mail

Konkola Copper Mines Kicks Off Ambitious Bio Diesel Project

CHINGOLA, APRIL 4, 2017 – Konkola Copper Mines (KCM) today took a major step towards the coming to life of a bio-diesel project, which will be a first for a tailing storage facility in Zambia and for elite Pongamia Pinnata trees to be used in mine rehabilitation.

KCM teamed-up with the Minister of Works and Supply and Chingola MP Honourable Matthew Nkhuwa and other local leaders to plant 500 elite Pongamia trees on a four-hectare overburden site to bring to 2,000, trees planted all as part of the pilot programme to determine the viability of producing bio-diesel from the trees.

The project has the potential to create 500 direct jobs and 1,000 indirect jobs for the youths in agro-forestry, farming, bio-energy processing, and energy service delivery. The commercial project is targeted for 650 hectares of land with 400,000 trees to be planted at an estimated cost of US$7 million.

Mr Nkhuwa noted that, “the government is spending huge amounts of money to import fuel into the country every month. With projects such as this, the burden on the government will be lighter and resources will be channeled to other areas for holistic development.” He added that, “The government is creating an enabling environment for public private partnerships such as this one in order to foster development.”

KCM Chief Executive Officer Steven Din said during the event that the project attested to the company’s commitment to invest in clean energy as an integral part of the KCM vision for sustainable development. “The trees we have planted here will revegetate a disused dump site, suck-up impurities and fix back nitrogen to the soil, improving its fertility.

In addition to all this, employment will be created for the local people,’’ Mr Din noted. The company is working in partnership with Better World Energy on the project seeking to re-fertilise bare land which KCM currently cannot use for agriculture purposes.

In addition, the project will provide a cheap and environmental-friendly source of energy for KCM. Pongamia is an ideal plant for recovering a variety of waste burdens such as saline soil reclamation. It brings soils back to life as the nitrogen and carbon feed rich soil microbial communities enabling other plants to grow on previously dead soil. Virtually, every part of the Pongamia tree is useful, with the seeds producing biodiesel and seedcake from the trees used to make briquettes for cooking and cattle feed after removing toxins.

The slurry can be used as a fertilizer, and because the tree is repulsive to animals naturally, bio-pesticides can be made from it.


Source: kcm.co.zm

METS Extract from 2017 Annual Report

Misenge Environmental and Technical Services Limited (METS) earned a total of K8.80 million as revenue for the year ended 31st March 2017 (2016: K6.22 million).

K2.63 million of the total revenue, was realised from recurring services to ZCCM-IH (2016: K5.15 million) and K6.17 million was from non-ZCCM-IH sources (2016: K1.10 million). METS recorded a loss before tax of K1.25 million (2016: K2.90 million loss).

During the year under review, ZCCM-IH advertised for the purchase of Fume extractors and Dust extractors to be installed at the Kabwe Analytical Laboratory. When the remaining works at the laboratory are complete, METS will be in a position to provide more analytical services at the laboratory and increase revenue.

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

Investrust Plc Extract from 2017 Annual Report

Investrust Bank Plc (Investrust) recorded an 8.22% decrease in net interest income to K40.82 million during the year ended 31st December 2016 (2015: K37.72 million). Interest rates on loans and advances were adjusted upwards following the removal on the lending rate caps for commercial banks. Nonetheless, the growth in net interest income remained constrained due to the high cost of funds on term deposits which form a significant part of Investrust’s deposit base.

Total operating expenses reduced by 19% to K148 million (2015: K183 million). This was mainly attributed to a non-recurring expense in respect of redundancy and severance booked the previous financial period. Salaries and staff benefit costs declined by 4% to K65 million (2015: K67 million). During the year under review, the bank recorded a loss of K48 million (2015: K51 million).

During the financial period, Investrust embarked on a capital raising exercise through a Clawback Rights Offer to meet the minimum capital requirement set by Bank of Zambia. ZCCM-IH fully underwrote the offer. Subsequent to the completion of the Rights Offer, ZCCM-IH’s shareholding increased from 10.6% to 48.6%. In the latter part of the financial period, Investrust undertook another capital raise through the issuance of non-voting preference shares, which saw the bank’s primary capital increase beyond the minimum capital requirement.

The bank’s share price on the LuSE closed the period under review at K13.50 (2014: K13.50).

There were no dividends declared during the financial year ended 31st December 2015 (2014: Nil).

CEC Extract from 2017 Annual Report

The Company continued to be listed on the LuSE and has 50% direct shareholding in CEC Liquid Telecommunications Limited, a joint venture company registered and domiciled in Zambia. CEC Liquid Telecom wholly owns Hai Telecommunications Limited.

During the financial year ending 31st December 2016, adjusted EBITDA was K888.12 million (US$90 million) compared to K520.35 million (US$80 million) the previous period posting an increase of 12.5% average. The increase in adjusted EBITDA is attributed to increased power trading income and the aggressive cost management initiatives, which impacted positively on the results.

Revenue at K3,503.14 million (US$355 million) was equivalent to the revenue in 2015 despite a drop of about 15% in domestic power supplies which had an equivalent reduction in domestic power sales from K2,743.3 million (US$278 million) to K2,180.83 (US$221 million.)

The increase in power trading supplies resulted in an overall increase of 86% in power trading revenue, which compensated for the drop in domestic power sales. Overall, domestic power sales remain the prime revenue source contributing 62% of the total revenue down from 78% the previous year, with power trading revenue increasing from 18% the previous year to 34% of total revenue.

The demand for electricity is expected to increase following plans to ramp up production on account of NFCA’s South East body project, MCM’s Synclinorium and KCM’s Konkola Deep Mining Project.

CEC Liquid Telecom continues to outperform past financial and operational results. Revenue at K207.23 (US$21 million) grew at 17% while gross margin and EBITDA increased by 10% and 33% respectively. The above financials are based on consolidated results of CEC Liquid Telecom incorporating Hai. The company, during the year, secured long term funding to support its expansion projects; mainly new backhaul bandwidth fibre connecting Zambia to Botswana and Namibia. This enables the creation of a robust network, reinforcing the strategy of operating the Zambian network as a regional hub. Further, the business commissioned its first investment in LTE spectrum, a wireless solution for provision of connectivity solutions as an alternative to fibre solution. Further investments are planned in this area to grow the business and realize the expected market disruption.

Effective 30th December 2016, CEC Africa was separated from the CEC Group and is now a sister company to CEC Plc rather than its wholly owned subsidiary. At an EGM held on 9th December 2016, the shareholders, on the proposal of the board, resolved to dividend out CEC Africa as a distribution to the shareholders of CEC. Hence, a dividend in specie of CEC Africa from CEC Plc to its shareholders was made. The effect of that transaction is that both CEC Plc and CEC Africa are now held by the same shareholders. The action was premised on the assumption that shareholders must be allowed to measure the performance of the two entities separate from each other as they face very different risks, and to enable the shareholders retain any upside that may occur in CEC Africa in the future.

The future business outlook for CEC Plc is positive, with growth expected to be derived from the increase in local power supply demand arising from the commissioning of new mine projects currently under construction.

The positive outlook in the copper price demand forecast has further ignited mining activities in Zambia and the DRC, creating an opportunity for increased demand. Lastly, growth is expected to come from the strategy around power trading and focus on the DRC mining supplies market in addition to the support for industry-wide cost reflective tariffs.

During the year, the Company paid out two dividends to its ordinary shareholders, the first being a cash dividend of K161.84 million (US$16.4 million) paid in the first quarter of 2016. The second dividend was a dividend in specie of CEC Africa of K9.68 (US$1). This dividend was paid on 30th December 2016.

The CEC Board on Tuesday, 7th February 2017 recommended an interim dividend of US Cents 1.29 per ordinary share, which translates to 12.80 Ngwee (K0.1280) per share, using the Bank of Zambia mid-rate applicable on the date of declaration. The dividend was paid to the shareholders registered in the share register of the Company at the close of business on Friday, 3rd March 2017.

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