KoBold Metals commits $150m investment in Zambia copper mine

US-based artificial intelligence exploration firm KoBold Metals has reportedly pledged a $150m investment to own, explore, and develop the Mingomba copper-cobalt mine in Zambia.

As part of the investment deal, KoBold agreed to pay $115m to the owners of the Lubambe Copper Mine, in which private-equity firm EMR Capital owns an 80% stake, reported The Wall Street Journal (WSJ).

In exchange, KoBold will receive a majority stake in the nearby Mingomba deposit, which is formerly known as the Lubambe Extension Project.

 

Furthermore, KoBold will invest $35m on exploration work at the Mingomba project, which is claimed to be the world’s highest-grade undeveloped large copper deposit.

 

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Source: Mining Technology

3.1% ZCCM-IH Revenue Royalty Model with Kansanshi Copper Mine is a good deal for Zambia – Watson Lumba

A Local Economist has dispelled assertions that the ZCCM-IH sold its 20 percent shareholding in the First Quantum Mine owned Kansanshi Copper mine of Solwezi and advised Zambians to avoid politicizing matters bordering on national wealth creation.

Watson Lumba stated that it is unfortunate that Zambians are finding comfort in politicizing everything and anything, a trait he cites to have potential to plunge the nation into a crisis especially when it borders on the economy and wealth creation.

Mr Lumba who was speaking when he appeared on Tuesday’s edition of Let the People Talk programme on Radio Phoenix said there is no way ZCCM-IH could sell its shares and still remain on the board with voting rights adding that people must stop politicizing good policies.

He noted that the decision by ZCCM-IH to forgo its dividend royalty in preference for the revenue royalty model of 3.1% is a good move that allows the investment holdings which only has 20% share holding in the mine to receive its share regardless of the status of the mining company instead of waiting for profit dividends which are not guaranteed.

“It is not true to say ZCCM-IH has sold its interest in the mine. What is true however is that the investment holdings still have a stake in the mine, and it will receive its money which will be calculated according to sales and not profits as is the case with dividends. Mind you, ZCCM-IH with its 20% shareholding in the mine had very little say despite having voting rights as the other shareholders have more than 50 +1 % giving them the ultimate decision making power. But under the new model, whatever decisions the majority shareholders make will not affect ZCCM-IH and its money as it is guaranteed through sales,” Mr Lumba explained

He further explained that the revenue royalties will ensure the stability of revenue inflow into ZCCM-IH coffers because it is based on the gross value of production as opposed to dividends which are centered on profit and added that the production value is less volatile than the profit value because of the cost element in the latter and the fluidity of the dividend policy that is at play.

Mr Lumba further disputed assertions from especially members of the opposition political parties that the government and the people stand to lose under the revenue royalty despite being the owners of the mine.

“Let us separate the two. The government on behalf of the people of Zambia owns the land and the minerals underneath the land but is not engaged in any form of production and does not incur any costs. Because of that, the government is getting the mineral royalty tax by virtue of it owning the land and minerals underneath. Then we have ZCCM –IH which sits as a shareholder on the board with voting rights but with no or less power to change any decision,” he said

“Under this arrangement, ZCCM –IH was only told what the major shareholders had planned to do with the profits and could do nothing other than take the company to court if not satisfied with the majority decision which was a cost on both entities. But under the revenue royalty model, ZCCM –IH will get its money according to the sales and will not be bothered by any investment decisions by the majority shareholder. The more they invest, the better for ZCCM –IH as it is assured of an increase in returns on its 3.1% royalty. This is a good deal. Let us just not politicize economic policies as that will affect the growth of our economy,” he added

Source: Lusaka Times

Investrust Bank PLC Extract from 2022 Annual Report

Investrust generated revenue of ZMW 150.8 million(2021: ZMW170.7 million) and net loss for the year was ZMW2.6 million (2021: ZMW15.1 million in profit). For the twelve-month period ended 31st December 2022, the Bank’s financial performance exhibited signs of improvement despite the inadequate capital. The Bank recorded a decline in bottom line income compared to the prior period. The decline in bank performance was largely attributed to the Bank’s inadequate capital which had a negative ripple effect on its ability to make advances and loans, attract deposits and invest in new IT infrastructure.  

ZCCM-IH, alongside other key stakeholders in Investrust, continued to strategize on the best possible option to recapitalise the Bank in order to make it competitive and enable it to play its rightful role in the Zambian financial sector.  

The Bank’s share price on the Lusaka Securities Exchange closed the period under review at ZMW25 (2021: ZMW15).  

There were no dividends declared during the period under review (December 2021: Nil).

VP hails Maamba Collieries for taking “huge corporate social responsibility

VICE-PRESIDENT M u t a l e N a l u m a n g o says contrary to certain perceptions, an investor is not any enemy of the people, arguing that there is need to tell the story that investors mean well. And Sinazongwe UPND member of parliament Gift Sialubalo has commended Maamba Collieries Limited (MLCs) for being “the most committed to corporate social responsibility firm in Zambia”. Speaking when she toured MLC, Monday Vice-President Nalumango described the firm’s CRS undertaking as huge. “The corporate social responsibility is huge here. I think every Zambian village or town is looking for a private investor to go to them if everybody behaves in the manner that like Maamba Collieries is behaving, it is huge. We care as government about the displacement because people come, they set up and after they have set up their company, the people are displaced, and they go right back probably in the worst situation like that house you showed me my sister. But look at what you have done, you have respected people in a better housing facility. Is that not what we are looking for to change the livelihoods of our people? And that starts with the housing, we commend,” she said “Colleagues, look at the roads, that is what we expect, and would anybody complain? Because I know our people, when they hear investor, [they think it] is an enemy of the people. But what we need is to tell this story that an investor is not an enemy of the people, an investor means well because what is happening here, and I am so happy because the MP is here, they are the ones who give us all sorts of sleepless nights about everything and everyone but the MP, member of parliament here honorable Sialubalo has confirmed that you have been working.” She said government was grateful that MLC was not just complying with the law but fulfilling people’s expectations. “Now that I am here, I am so grateful, you are truly working to comply with not just the law of our country but also expectations of our people. Like my colleagues that have already commended, and I would invite you to diversify into other areas,” Vice-President Nalumango said.

She encouraged the company to ensure environmental protection in its operations. “And another thing that I should talk about is smart mining that you are doing, being able to even fill up the holes that were left earlier and for that, I commend you. We encourage you to go on and care for your people like your own, you have only one earth on the issue of environmental sustainability. You only have one earth and Zambia sits on this earth so anything you do that makes us avoid climate change is important,” said VicePresident Nalumango.

And Sialubalo also commended MLCs’ commitment to CSR. “Madam, when I visit your office talking about Maamba Collieries, don’t term me praise singer of Maamba Collieries. Maamba Collieries has been a major partner in the development of Sinazongwe. Apart from what you have seen, they constructed a shelter at the same hospital where we are heading to [and] right now, what they are doing is they are patching up Batoka-Maamba road which is in a bad state. I just wrote a letter to them to say as we wait for government to come in, what can we do together [and] within a week, they were on site. They are doing a commendable job, there is no investor, Madam, that I have seen in Zambia who is more committed to CSR rather Maamba Collieries, they deserve our support as government,” said Sialubalo.

Meanwhile, MLC senior electrical engineer Robby Mwelwa said the firm injected over 250 megawatts into the national grid per day and contributed about K2 billion to the national treasury as
at September 30. “We inject 267.6 megawatts into the national grid, so we generate 300, the rest we use it for auxiliary consumption and what remains is what we inject in the national grid. So our
operations here, your honour, are actually in tandem, we collaborate with ZESCO our shut down, whatever we need to do, we are in contact with ZESCO and ZESCO will always advise on what we need to do. This is our thermal power plant performance your honour, as of 30th September 2022, we have been able to inject 9,663 megawatt hours into the national grid,” he said.

We have now been able to inject about K2.166 billion in the national treasury as of 30th September, we are working in tandem with the 8th National Development Plan, and we contribute 10% to the national installed capacity. So, as you can see your honour from the pie chart here, most of the power generated in Zambia is hydro sitting at 81% and for us Maamba we are able to contribute
10% using this coal which was regarded as waste.”

Mwelwa reaffirmed the company’s commitment to CSR. “You honour, here, our philosophy is that as the company grows, we need to grow the community where we are operating in. Our motto is
making a difference. As MCL, we believe in making a difference in our operational areas so for us to be able to achieve or deliver, we have areas which we consider. So for our CSR activities, they are centred on education, health and sports, environmental as well as infrastructure development,” said Mwelwa.

CEC bags 2022 ZEMA Green Award

CEC has scooped the 2022 Green Award, conferred by the Zambia Environmental Management Agency (ZEMA) at this year’s Environmental and Climate Change Awards ceremony held on Thursday, 29 September.

It’s the second time in six years that CEC has taken the nation’s overall recognition for sustainable business conduct judged through improved environmental management practices. The Company’s maiden ZEMA Green Award came in 2016.

ZEMA’s criteria to be considered for this award includes demonstrated application of effort sufficient to meet environmental standards by making use of clean technology, waste minimization, pollution prevention and recycling and ecosystem restoration.

Senior Manager HSES & Risk, Caroline Sinkamba, commented: “We rewrite our green history not just once, because sustainability is our life.”

In the last 10 years, CEC has taken various environmental stewardship awards, including the top Environmental Award for Overall Contribution to Sound Management Practices in Industry in 2021.

Misenge Environmental and Technical Services Limited (METS) Extract from 2022 Annual Report  

Misenge Environmental and Technical Services Limited (METS) generated a total of ZMW 4.93 million in revenue for the year ended 31st December 2022 (2021: ZMW17.11 million). METS reported a net loss of ZMW4.39 million (2021: ZMW2.51 million profit)  

During the period under review, METS continued the implementation of its Strategic Turnaround and Marketing Plan. ZCCM-IH capitalised the company with ZMW45.323 million during the year. Management 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 2021: Nil)  

Copperbelt Energy Corporation Plc (CEC) Extract from 2022 Annual Report

During the year ended 31 December 2022, CEC reported total revenue of ZMW6.34 billion (US$374.44 million), (2021: ZMW6.74 billion (US$342.52 million)) and profit after tax of ZMW1.68 billion (US$98.71 million), (2021: ZMW1.01 billion (US$51.25 million)).  

The Bulk Supply Agreement between CEC and ZESCO that expired on 31 March 2020 was renewed after the year end on 7 April 2022. This delay negatively impacted the business’ margins and performance. Nonetheless, CEC proved to be a resilient business and continued to thrive and diversify its operations in spite of the challenges faced.  

Further, CEC successfully contested Statutory Instrument (SI) No.57 of 2020 that declared its transmission and distribution lines as common carrier. The declaration was quashed by the high court and replaced by SI No. 24 of 2021. The court did not pronounce itself on the said SI, as the new government took the decision to repeal the SI No. 24 of 2021. This action has fully restored CEC’s commercial rights over it’s own infrastructure. For the year under review, the CEC share price opened at ZMW 1.10 per share and closed at ZMW 1.95. Based on the period-to- 30 September 2021 performance, CEC management did not budget for any dividend payment. However due to unexpected improvements in financial performance.  

The Company declared and paid a dividend of US$ 50.37 million with ZCCM-IH receiving US$ 10.3 million (2021: US$9 million).  

Kabundi Resources Limited) Extract from 2022 Annual Report

For the year ended 31 December 2022, Kabundi Resources Limited (KRL) reported total revenues of ZMW13.64 million (2021: ZMW 5.58 million) with a net profit of ZMW5.5 million (2021: ZMW 1.95 million net loss).  

Kabundi Resources Limited (KRL) began its own mining operations to try and boost revenues in addition to the existing royalty arrangement that had been in place since inception. A total of 26,133 tonnes of manganese was produced during the year ended 31st December 2022.  

In the period under review, Kabundi made progress with phase 2 which included starting own mining and conducting additional exploration activities. This was made possible through additional funding that was provided by the shareholders.  

During the period under review KRL continued its mining activities on Three (3) sites namely “Kabundi A & B” and also in Ntenge where KRL had acquired another mining license. Going forward, the Company’s focus will be to acquire mining equipment and further Kabundi paid management fees totalling ZMW 0.9 million to ZCCM-IH in the period under review.  

There were no dividends declared during the period under review (December 2021: Nil).  

Konkola: Key to hitting 3 million tonnes copper target

The new dawn government of President Hakainde Hichilema has set its vision clearly when it comes to copper mining – it wants to ramp up production to three million tonnes per annum in the next decade.

With current production standing around 800,000 metric tonnes (mt) per annum, it is quite an ambitious plan – too ambitious, some in the industry have argued.
But there is good motivation for such efforts – an expected huge demand for copper driven by the nascent electric car industry, and the price for the red metal, which peaked above US$10,000 per tonne about two years ago.

Copper prices reached an all-time high of US$10,512 per metric tonne on May 9, 2021, but have receded to about US$8,000 in the recent past, which is still a good price for copper producing countries such as Zambia.

Some mining companies in the country are already responding accordingly to the prospect of high demand, making new investments to increase production. But one major player, Konkola Copper Mines (KCM), cannot rush to the table yet, held back by

 

Read more: http://www.daily-mail.co.zm/konkola-key-to-hitting-3-million-tonnes-copper-target/