Nava Bharat Ventures has rallied 13% to Rs 250, also its 52-week high on the BSE, after the company announced that its Zambian subsidiary, Maamba Collieries Limited (MCL) has repaid the sponsor bridge loan to Nava Bharat Group in full.

“The company’s Zambian subsidiary, Maamba Collieries Limited (MCL) has concluded accession of additional long term debt. With this, MCL’s integrated coal and power project is funded, with long term external total debt of USD 590 million,” Nava Bharat Ventures said in a BSE filing.

Total debt including the debt of US$ 515 million for which the financial closure was announced earlier, it added.

Meanwhile, the stock has outperformed the market by surging 51% in past one month, after the company reported more than doubled net profit of Rs 58 crore for the quarter ended March 2016 (Q4FY16) against Rs 24 crore in a year ago quarter. The S&P BSE Sensex was up 0.7% during the same period.

The company attributed better performance during the quarter owing to a combination of positive factors like better margins for power and sugar with better volumes of sale for power and ferro alloys.

At 12:29 AM, the stock was up 10% at Rs 243 on the BSE. A combined 1.57 million shares changed hands on the counter on the NSE and BSE.

Source: Business Standard

Nava Bharat Ventures Ltd’s Zambian subsidiary, Maamba Collieries Limited (MCL) has concluded accession of additional long term debt. With this, MCL’s integrated coal and power project is funded, with long term external total debt of US$ 590 million (including the debt of US$515 million for which the financial closure was announced earlier).

Following the disbursement of loan by the additional lender, MCL has repaid the sponsor bridge loan to Nava Bharat group in full, pursuant to common terms agreement with the lenders.

Shares of NAVA BHARAT VENTURES LTD. was last trading in BSE at Rs.220.85 as compared to the previous close of Rs. 217.25. The total number of shares traded during the day was 49542 in over 1655 trades.

The stock hit an intraday high of Rs. 224.15 and intraday low of 218.75. The net turnover during the day was Rs. 10983874.

Source: Equity Bulls

NOMSA NKANA, Lusaka

CHIBULUMA Mines earned more than US$70 million in 2015, a senior company official disclosed recently.

Chibuluma country manager Jackson Sikamo said the company sold 13,303 tonnes of copper in 2015, earning US$71 million in gross revenue.

Mr Sikamo also said as at May 31, this year, Chibuluma spent US$14.4 million on development.

He said Chibuluma’s current major project is the company-financed US$24 million Chifupu copper development project.

Mr Sikamo was speaking in Lusaka during the just ended 6th Zambia International Mining and Energy Conference which was held under the theme, ‘Mining and energy on the growth path to support and grow the Zambian economy.’

“However, the mine’s performance in the financial year 2015 has been characterised by low production volumes, and this, coupled with the continuously falling copper prices, has put severe pressure on the company’s cash flow,” he said.

He said Chibuluma Mines is facing operational challenges due to, among other issues, the copper price reduction and increasing cost of production.

Mr Sikamo said other challenges facing the company are current resources mined out by 2019 (excluding the Chifupu reserve), skills retention, underground collisions, supervisor safety culture, historically supervisor- dependent and equipment availability and reliability, among others.

He said to address the challenges, Chibuluma Mines is looking for acquisitions, explorations and joint-venture partnerships with local or foreign companies to expand its operations in the country.

Chibuluma Mines plc is a modern mechanised underground copper mine which is 85 percent owned by Jinchuan Group Company Limited and 15 percent by ZCCM-IH plc.

Source: Zambia Daily Mail

The 800 million dollar Maamba thermal power plant project has reached pre-commissioning stage.

Maamba Thermal Power plant chief executive officer Venkat Shankar says the tests on the plant are going on smoothly with some adjustments being made to reach the required parameters.

Mr. Shankar has told ZNBC news in a telephone interview that all systems have been checked and found to be correct.

He has however not disclosed when the plant will fully start generating electricity for commercial use but was quick to state that the plant is close to doing so.

Mr. Shankar further said the tests on the plant have been going on for over a month now.

The Maamba Thermal Power Plant will start producing one hundred and 50 mega watt, which will be increased to 3 hundred mega watts.

Source: ZNBC

First Quantum Minerals Ltd. agreed with a trio of unions on pay increases over three years for workers at its copper operations in Zambia.

Wages will rise in increments of 6 percent to 7 percent starting in January 2017 and education allowances will also be increased in stages, the company said in an e-mailed statement from London on Thursday.

Miners in Africa’s second-largest copper-producing country are struggling with higher production costs and lower metal prices, which are cutting into profits and have led companies to announce thousands of job cuts. Facing sluggish economic growth and soaring inflation, the government is under strain to ease public discontent before elections in August.

“Even though our profitability has been hit by falling copper prices and rising operational costs, the company understands the pressure that increasing costs of living place on its employees and their families,” FQM said in the statement.

FQM owns 80 percent of the Kansanshi mine, located about 180 kilometers (112 miles) northwest of the Copperbelt town of Chingola, which has the capacity to produce 340,000 tons of copper and 120,000 ounces of gold every year. Copper output at the mine declined 14 percent to 227,000 tons last year, which together with lower prices for the metal cut gross profit by 70 percent, the company said on Thursday.

Kansanshi, which has a workforce of 2,841, is the largest producer of copper on the continent, FQM said. ZCCM Investments Holdings, the company formed to hold Zambian state’s minority stakes in local copper mines, has the remaining ownership of Kansanshi, according to FQM’s website.

Source: Bloomberg

MOPANI Copper Mines says it will sink two more shafts in excess of 2,000 metres at its Mufulira and Mindola Mines in Kitwe as part of its US$1.1 billion investment earmarked for high profile projects.

President Edgar Lungu last week launched a US$323 million Synclinorium Shaft that is aimed at extending the life of the mine at Nkana beyond the current expected depletion dates of the existing reserves by 25-30 years.

Announcing the projects, Mopani chief executive officer Johan Jansen said the two shafts that would be sunk at Mufuliraand Mindola would be the deepest ever sunk in Zambia and the deepest copper mines on the African continent.

“Investments from our major shareholders Glencore since 2000 stands US$3.04 billion and is one of the single largest private investments in Zambia. A further US$ 1.1 billion investment has been earmarked for a number of other high-profile projects over the coming years,” Jansen said.

He said the shafts would help make operations more efficient and cost effective.

He said like the Synclinorium Shaft, the two would add a further 25-30 years of mining life to Mindola and Mufulira mines.

“What we want is to develop a world class operation that is safe, efficient and cost effective as well through investment and value to our stakeholders,” Jansen said.

He further congratulated Mopani’s major contractor for the Synclinorium Shaft, Murray and Roberts, for delivery of a world-class project.

Jansen said through such huge projects, the company would continue to significantly contribute to the government treasury for many years, amongst many other benefits.

Further, Jansen said Mopani wanted to realise its vision to be a profitable, sustainable and world-class copper producer by 2023.

Source: The Post Zambia

President Edgar Lungu has commissioned the synclinorium shaft at Mopani Copper Mines in Kitwe.

The 3 hundred and 23 Million US dollars project is set to extend the life span of the mine to between 25 and 30 years.

Speaking when he commissioned the shaft, President Lungu says the shaft is a mark of confidence in governments resolve to turn around the economy of the Copperbelt and the country as a whole.

The President urged Zambians not to be cheated because the PF is ready and able to deliver development.

The President disclosed that Genclore the owners of Mopani Copper Mines has further set aside 1 point 1 billion US Dollars for a number of projects aimed at transforming Mopani into a modern mining operation.

The President noted that these investments will make the mine more resilient to global metal price shocks because they will be cost effective and more adaptive to various other challenges.

This investment covers two other similar investments in Mufulira and Mindola where Mopani is sinking two deep shafts to be the deepest in Africa.

And speaking at the same function, Mopani Copper mines Chief Executive Officer Johan Jansen said the commissioning of the shaft has given a beacon of hope to employees and various business entities on the Copperbelt.

Mr Jansen said the project is of great economic significance not only to Mopani but the whole country.

And Minister of Mines Christopher Yaluma says despite the slump in commodity prices , Zambia ‘s mining sector has continue to record positive growth.

Mr Yaluma says the sector has recorded a 2 percent growth following Copper Production of 7 hundred and 10 thousand 5 hundred and 60 Metric tonnes compared to last year’s 7 hundred and 8 thousand 2 hundred and 4 metric tonnes.

Meanwhile, Mines Workers Union of Zambia President Chishimba Nkole appealed to Mopani Copper Mines to re-engage some of the retrenched miners at the shaft.

Mr Nkole says Mopani’s massive investment has given a ray of hope to the country’s economy and job sustainability.

And Kitwe Chamber of Commerce President Allan Nyirenda has urged small and medium entrepreneurs- SMEs to explore new business opportunities in the city.

Mr. Nyirenda says SMEs should take advantage of the development projects in Kitwe to grow their businesses.

He cited the construction of the Edgar Lungu Shopping mall, which he says will create opportunities for SME’s in the Province.

Mr. Nyirenda however advised small and medium scale entrepreneurs to provide quality products and services to the public.

He was speaking this morning when he appeared on Kitwe’s Morning Live News and Current Affairs Programme.

Source: ZNBC