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ZCCM-IH declares K250m dividends

ZAMBIA Consolidated Copper Mines Investment Holdings (ZCCM-IH) shareholders have approved payment of a K250 million dividend to Government.

ZCCM-IH investor relations officer Joseph Lungu announced at a press briefing yesterday that the decision was made at the firm’s annual general meeting (AGM) in Lusaka.

“Today, our shareholders approved payment of a final dividend of K1.56 per share which had been recommended by the directors,” Mr Lungu said.

This is the first dividend that ZCCM-IH has paid since its transformation into an investment holding company in 2000.

Mr Lungu said the dividend has come as a result of the steps government took to convert the debt of K1.8 billion that ZCCM-IH owed it into equity through a clawback rights offer which was completed in March this year.

This has also led to the company raising K257 million as capital.

“This has really positioned the company strongly to exploit investment opportunities that will benefit the shareholders and the nation,” he said.

Mr Lungu said the capital market has recognised the steps the company has taken and this is evidenced by the performance in the share price.

He said this year alone, the company’s share price has gone up by 134 percent, valuing the company at over US$1 billion, which makes it one of the largest companies on the Lusaka Stock Exchange by market capitalisation.

“In fact, since 2011, the share price has gone up by 300 percent which is a remarkable return for our shareholders,” Mr Lungu said.

He also said the company has incorporated a representative of the minority shareholders.

Financially, the company performed well this year with a revenue of K803 million compared to K305 million in the previous year, representing a 163 percent rise.

The company’s profit after tax was K892 million from K567 million, while total assets were K8.7 billion from K7.3 billion.

The group had a revenue of K1 billion and profit after tax of K277 million.

Source: Daily Mail
ZCCM-IH News

ZCCM IH group pays US$40 mln in dividends to shareholders

Zambia Consolidated Copper Mines Investment Holdings, the London, Lusaka and Euronex listed group paid US$40 million in dividends to shareholders as share value rose.

The dividend of K1.56 per share to be paid to its shareholders since the company’s formation in 2002, the forerunner to Zambia Consolidated Copper Mines (ZCCM), entails that the owners or shareholders will pocket a total of K25,000,000 (US$40 million) next month during the share pay out, the company said in its report to shareholders during an Annual General Meeting held in Lusaka, Oct. 7.

The remittance of the dividends will be paid to shareholders on or before 7 September this year was achieved after the shareholders, Zambian Government inclusive made to convert the debt that the company owed into equity through the claw back rights offer process which was completed in March this year.

The claw back further entails that it eliminated the debt of K1.829 billion that made it difficult for the company to remit dividends to shareholders including the Government, which owns about 87 percent in the company. It further raised capital to K257 million and also repositioned the company to exploit investment opportunities to benefit the shareholders and the nation at large, the report stated.

The Capital Market further recognized the Company’s efforts to realign itself into a profit making venture as evidenced by the good performance in the share price, which this year alone, allowed the share price to jump to 134 percent, valuing the company at slightly over US$1 billion, making it one of the strongest companies trading its shares on the Lusaka Stock Exchange (LuSE) in capitalisation.

As at 2011, the share price had more than doubled to 300 percent, a remarkable return for the shareholders and with the dividend declared, the turn of events has been historical for the company that had for long grappled with escalating debts.
Earlier this year, the company considered the views and participation of the minority shareholders and decided to consider their participation in the company affairs and since appointed a non executive director, to serve their interests for the first time ever in the history of the company.

During the year 2014, the company revenue as a group rose 163 percent on the year, rising to K803,013,000 from a paltry K305,481,000 recorded a year earlier with profit after tax rising 57 percent to K892,657,000 from a low K567,925,000 earlier.
Total Assets rose 19 percent to K8752,010,000 from K7,359,067,000 reported last financial year, with the group revenue rising to K1,000,538,000 from K520,104,000 in 2013 with profit after tax recording in excess of K277,186,000 from K762,021,000 a year earlier, the report added.

“ZCCM IH is now well placed and poised for the future. With our mission to maximize shareholder value as our guiding principle, we aim to use our strong financial position to make sustainable investments that will continue to benefit our shareholders now and in future,” the report stated.

ZCCM Investments Holdings Plc (ZCCM-IH) is one of Zambia’s prime investments holdings companies with the majority of its investments in the copper mining sector of Zambia.
It is quoted on the Lusaka, London and Euronext Stock Exchanges. The Company’s shareholders are the Government of the Republic of Zambia (GRZ) with 87.6 percent shareholding and private equity holders with 12.4 percent. Minority shareholders are spread throughout the world in various locations.

ZCCM-IH is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM Ltd).Prior to privatization in 2000, ZCCM Ltd was a consolidated copper mining conglomerate which owned and operated a number of mining divisions which at privatization were sold off as independent mining companies.

ZCCM Ltd was majority owned 60.3 percent by the Government of the Republic of Zambia, 27.3 percent by Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc and 12.4 percent by private investors.

Source: Zambian Informer

Investee Company News

Murray & Roberts cementation continues to excel at Lubambe copper mine LTD

Murray & Roberts Cementation’s second contract, for the trackless high speed development at Lubambe Copper Mine in Zambia, has been extended by a further two-year period.

The Lubambe Copper Mine which is a joint venture between African Rainbow Minerals, VALE and Zambia Consolidated Copper Mines Investment Holdings, is expected to produce 45 000 tonnes of contained copper at steady state by 2015.

The current contract involves all horizontal development work using trackless high speed technology in Ramps 1, 2, 3, 4 and 5.

In addition, the Murray & Roberts Cementation team was also requested to undertake the vertical development of return airways, service raises and silos and maintenance work on the surface infrastructure, provided by Murray & Roberts Cementation on the first phase of the contract, will continue for the duration of the entire contract.

Murray & Roberts Cementation Senior Project Manager at Lubambe Wyllie Pearson, added that they will continue with several projects that were started under the first contract.

“We will continue the development of infrastructure for two conveyor belt systems and supply and install all temporary compressors and air piping reticulation necessary for the development works and diamond drilling section. Furthermore, we will install all temporary ventilation fans and ducting,” he said.

“We also operate and maintain the owner’s equipment fleet. Six Sandvik TH 540 dump trucks, four Sandvik LH 410 and one Sandvik LH 514 LHD, as well as nine Sandvik TH540 40-ton articulated dump trucks allocated to load and haul. Face charging is performed with three Getman emulsion charging units and the transport and lifting equipment consists of two Getman scissor lifts, a Fermel scissor lift and two Getman cassette handlers. A Fermel grader and Manitou 742 telehandler complete this fleet,” added Pearson.

Allocated to drilling are five Sandvik DS320 double boom split-feed jumbos, a DS320 fixed rail jumbo and a DS 420 long hole rig used for raise mining. The support and supervision vehicles are Toyota Land Cruisers, which have been converted to mining specifications.

“All maintenance work on this equipment as well as the Murray & Roberts Cementation equipment fleet is undertaken in our well-equipped on-site workshop by a highly experienced team of mechanics and technicians, to ensure optimised operability and uptime. All consumables are supplied by the mine,” he revealed.

Pearson said that the contract is characterised by a high level of cooperation between the Murray & Roberts Cementation and Lubambe Copper Mine teams.

“We have developed a mutually beneficial relationship that sees us providing our client with a ready and continuous supply of power and water handling facilities, to ensure efficient interaction within overlapping areas. In addition, the mine provides our team with rock bolts, split sets, mesh and cement, while diesel and lubrication oils are supplied as free-issue items.”

Since the extension of the first contract by 15 months, a total of 24 653 metres has been developed against a target of 23 458 m.

“We have made excellent progress to date and met every one of our scheduled targets. The two main underground tipping arrangements consisting of four tipping points and two silos were completed and commissioned within the scheduled construction dates. A mineral sizer was installed and commissioned ahead of schedule on the tips,” Pearson said.

The six level crusher chamber was rehabilitated and supported with welded mesh and 6 m cable anchors, with the crusher and equipment in place. In order to assist with the main return air system, a series of ventilation raises were developed from the ramp 3 225 Level and two 225 kW surface fans installed and commissioned.

The project has not been without its challenges. Some parts of the Lubambe ore-body can only be accessed by mining through a very weak zone of sand-like material. The sand zone developing and support project comprises four successfully completed sections with a fifth in progress.

These sand zones require specialised support methods developed specifically for Lubambe and are similar to civil tunnelling support methods. Pearson explains that this has been effectively achieved by using Titan soil nails, Becker Arch Sets, 5,6 mm welded mesh and shotcrete as support mediums. Sand is excavated out of the face using a Hyundai 35Z7 mini excavator.

At the request of the client, a drop raising programme was undertaken, with 12 345 metres completed concurrently with contractual development.

Pearson expressed belief that the success of the project to date can be attributed to a number of factors, including the creation of a highly efficient team of experienced and multinational operators, supervisors and management, mostly with previous expatriate experience. The drilling team is a mixture of Australian decline mining specialists and Filipino and South African expats.

The team comprises 405 employees, with approximately 12% expatriates. The Zambian national component of the team is made up of HR staff, surveyors, accounts and administration staff, skilled operators, officials and workmen. The expat component of the crew consists of site management, safety and training staff and expert miners, operators and maintenance staff.

Similarly, training plays a big role in ensuring that the requisite regulations and quality standards are achieved and maintained.

“The training at Murray & Roberts Cementation’s Bentley Park facilities included trackless mining modules. The nature of the ore bodies in Zambia is such that most of the mining is fully trackless, with the exception of the haulage levels. There is a vast pool of fully trained and experienced mine workers available to recruit from, which has greatly simplified the human capital element of the project,” Pearson pointed out.

He said there was a successful transformation from a small highly skilled decline sinking crew, to a team responsible for ore and main development, sometimes in remote and scattered areas of the mine.

Employees also have access to a modern e-learning centre which has been opened at Murray & Roberts Cementation’s Synclinorium shaft sinking project in Kitwe

“This centre provides the same high quality standards as the Bentley Park facility in South Africa. The comprehensive Murray & Roberts electronic library and learning system is available for learners and facilitators alike,” quipped Pearson.

Appropriate and successful training is reflected in the safety record achieved on site, with no Lost Time Injuries (LTI) recorded for the first year. There have also been no fatal incidents on the contract to date, a noteworthy achievement given the nature of the project.

The award of the Synclinorium shaft sinking project, as well as the shaft sinking and development of the Mufulira Deeps project are a true reflection of the company’s reputation in the region.

In addition, Murray & Roberts Cementation’s Raise Boring Division is presently operating in Kansanshi, a further indication of the significant growth in the company’s presence in Zambia.

“Murray & Roberts Cementation has demonstrated complete commitment to its Zambian projects through the formation of a Zambian division with corporate offices situated in Kitwe. We are presently able to offer prospective clients a full shaft sinking and development portfolio, including training and administration from Zambia, with the benefit of technical and logistical support from Murray & Roberts Cementation in South Africa,” Pearson said.

Source: Mining News Zambia
Corporate Announcements

ZCCM-IH Annual Report 2014

The latest ZCCM-IH Annual Report is embedded below. ZCCM-IH is the investments holding company majority owned by the GRZ and holds minority equity interests in the successor mining companies created after the unbundling and privatization of Zambia Consolidated Copper Mines (ZCCM) in 2000. It is public listed on the LuSE. Its shares also trade on the Euronext stock exchange in Paris.

Under the current shareholding structure, GRZ holds 87.53 % whilst 12.47% is held by minority shareholders. Following privatization of ZCCM in 2000, ZCCM-IH inherited debt of approximately USD 363 million on its balance sheet. And for the next ten years the company was technically insolvent – and therefore unable to pay any dividends to its shareholders on account of this legacy debt.

In 2013, ZCCM-IH undertook a major internal restructuring exercise to expunge the legacy debt from its balance sheet. This was done via a share rights offer. Prior to the balance sheet clean up, the share price of ZCCM- IH on the LuSE was K12.50 on 2nd January, 2013. After the successful rights offer of May 2014 and elimination of the legacy debt from the balance sheet, the price of ZCCM –IH shares on the LuSE has risen significantly and was K40 as at the beginning of October, 2014. This represents a capital gain of 220% over a period of 21 months.

With a clean balance sheet, ZCCM-IH is now in a position to declare and pay dividends to its shareholders based on the dividend revenues it receives from its investee companies and operating subsidiaries. ZCCM-IH recently did just that. It declared dividend – and at the AGM held on 7th October, 2014, shareholders approved a total dividend of K250 million which is approximately US$40 million .With a market capitalization of US$ 1 billion, ZCCM-IH is now the company with the largest market capitalization on the LuSE.

In the 2015 Zambia national budget, Government announced that it ntends to scale down its shareholding in ZCCM-IH from 87.53% to 60%. This sell down of 27.53 % shareholding represents approximately US$ 270 million in current value terms. The plan is to sell the shares to “Zambian citizens”. The net effect is that the free float of ZCCM-IH will increase significantly from the current 12.47% to 40%. This will improve the liquidity in the stock and on the LuSE as a whole.

We shall return to the question of ZCCM-IH in due course.

AUTHOR
Chola Mukanga
Economist | Researcher

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Corporate Announcements

ZCCM-IH | Appointment of Chief Executive Officer

The Board of Directors of ZCCM Investments Holdings Plc (ZCCM-IH) is pleased to announce the appointment of Dr Pius Chilufya Kasolo as the new Chief Executive Officer of ZCCM­IH with effect from 1 October 2014.

Dr. Kasolo holds a PhD in Economic Geology from the University of Southampton, United Kingdom as well as an MSc in Mineral Evaluation from Nancy Ecole de mine, France. Dr. Kasolo also holds a BSc in Geology from the University of Zambia. He holds various other business and technical qualifications.

Dr. Kasolo has over 20 years experience in the mining sector as a consultant and at senior management level, during which he has worked in, and provided consultancy services to, organisations with major international mining interests. He has undertaken various high level research studies, consultancy assignments and evaluations in the mining industry and other business sectors for the European Union, BHP, the University of Southampton and the Zambia Revenue Authority among others. He has held various senior positions in the mining industry including that of Exploration Manager for JCI Limited of South Africa (then Part of the Anglo American Corporation) covering various countries namely Ivory Coast, Burkina Faso, Senegal, Ghana, Mali and Gabon. Dr. Kasolo has served as Director on several companies in Africa including Firestone an Australian Listed company.

Prior to this appointment, Dr. Kasolo was owner and Chairman of Zambezi Holdings, a diversified Investment company and Chief Executive Officer for Zambezi Mining Services (a concrete lining products firm based in South Africa). The Board takes this opportunity to congratulate and welcome Dr. Kasolo and is confident that he will contribute greatly towards the achievement of ZCCM­IH’s vision to become Zambia’s leading investment company.

Dr. Kasolo takes over from Mr Mukela Muyunda who was ZCCM­IH’s CEO until 7 August 2014. The Board would like to take this opportunity to thank Mr Muyunda for his valuable contribution to the Company during his tenure of office and wishes him success in his future endeavours.

Issued on behalf of the Board

Cosmas Mwananshiku
NON­EXECUTIVE DIRECTOR
Lusaka, 01 October 2014
Investee Company News

KCM remits over K700 million to Government in taxes

Despite the various problems afflicting Konkola Copper Mines in recent months in addition to a commercial standoff with Copperbelt Energy Corporation over US$44 million in energy services, the miner has upheld its tax obligations and remitted over K700 million in taxes to Zambia Revenue Authority two years ago.

Deputy mines minister Richard Musukwa told lawmakers in Lusaka, Sept. 30 that KCM remitted a total of K782,269,066.72 in taxes to the Zambia Revenue Authority (ZRA) and that the company was not selling copper to Vedanta Resources but was selling at the international market on the London Stock Exchange.

Responding to oral questions from who wanted to know the total number of workers employed by Vedanta Resources Plc, whether KCM sold copper to Vedanta Resources, how much copper was sold in 2012 and how much money was paid by KCM in form of taxes to the ZRA in 2012 Musukwa stated that the company had a total number of 7,553 workers as of August 29, 2014.

The lawmakers further sought clarifications as to whether the miner had been audited in view of reports that the company had been undeclaring its earnings in Zambia. Recently, its chairman Anil Agarwal was reported to have mocked Zambians over a US$500 million profit the mine earns in Zambia annually after investing a paltry US$25 million in 2004.

However, Musukwa stated that the Government was working to ensure it cleared suspicions that Kim was under declaring its taxes so that the Zambians get the best in terms of taxation.

Recently, KCM spokesperson Shapi Shachinda lamented that the company was among the highest paying in electricity tariffs in Zambia under the Bulk Power Supply Agreement with Copperbelt energy Corporation, the distributor of power to the mines, which is claiming US$44 million debt from the miner.

In a statement recently Shachinda stated that KCM was facing power restrictions following a commercial dispute between the two parties. KCM now pays more than K700 million (rebased currency) per year in power tariffs.

The dispute follows CEC’s unilateral increase in power tariffs since April 2014 contrary to the provisions of the Power Supply Agreement (PSA) between KCM and CEC. The CEC has also been refusing to generate invoices based on electricity tariffs agreed through the PSA to facilitate payments of bills by KCM for power supplied to the mine, Shachinda added.

It should be noted that prior to April 2014, CEC had increased power tariffs by over 100% in accordance with the PSA and this has resulted in KCM having the highest power tariffs in the mining industry in Zambia.

The restriction in power supply will adversely affect Konkola Copper Mines’ operations and compromise safety of the employees and job security. The operations of the Nchanga integrated business unit have already grossly been affected.

KCM regrets that CEC has chosen not to pursue this matter in accordance with the PSA provisions on dispute resolution.

Investee Company News

KCM grapples to remain operational in Zambia

Operational problems at Konkola Copper Mine (KCM) have heightened because of a myriad of problems besieging the country’s leading producer of copper and cobalt.

Until Friday, Sept.26, KCM had power restricted to a number of operations including the concentrator at the Tailings Leach plant and the underground section which later was flooded with water, following a US$44 million debt accrued in unpaid energy bills to power supplier on the Copperbelt – the Copperbelt Energy Corporation (CEC).

Despite the unpaid bills, CEC decided to restore 100 percent power to KCM premised on the understanding that the company would meet its obligation as directed earlier by the Lusaka High Court that the company pay the US$44 million which had been outstanding since April this year.

CEC spokeswoman, Chama Kalima said the restoration of full power supply to KCM was done out of goodwill despite KCM failing to meet its financial obligations adding that is not right for any business that means well to wait for court orders for it to pay for services consumed.

“It is our hope that in response to this show of good faith, KCM will pay all its outstanding bills and begin to pay all their future bills as they fall due,” she said.

CEC believes it is important that all parties take learning points from this incident and begin to uphold obligations in accordance with the Power Supply Agreement (PSA), she added in a statement following interventions by the Ministries of Mines to have the matter harmonized to avoid ‘sabotage’ to the economy.
“Irrespective of this decision, CEC still reserves all its rights per provision of the PSA with KCM, which CEC will exercise should it become imperative to do so in the near future,” Kalima added.

The refusal by KCM to pay against invoices issued for about six months, even on undisputed amounts, has adversely affected CEC’s business and subjected the power company to subsidizing and sustaining KCM operations for the said period.

As a consequence, CEC has also been unable to fully discharge its obligations to ZESCO Limited.

Despite their continuous defaulting on payments, KCM also argues that they are not liable to pay interest, in complete contravention of the PSA.

“All this is unacceptable in normal business practice and should not be encouraged,” Kalima stated.

KCM spokesperson Shapi Shachinda has since confirmed the restoration of power to affected areas of the mines but lamented that the discharge of water from underground would take some weeks to be undertaken.

This is in the wake of the company losing US$3.3 million in revenue as well as 482 tons of copper in interrupted production of the red metal over the past few days.

on the operations of the mines by the management and seeks that the miner should revive its operations by injecting fresh capital into the company, these sentiments were brought to light by Vice President and leader of Government business in Parliament, Guy Scott.

Responding to lawmakers, Scott said it was his view that fresh capital be pumped into the mining company.

The lawmakers wanted to know the future of the mining company in view of reports in the media to which Vice President replied; “Our Government’s view is that KCM needs a fresh capital injection. Our experts, consultants and advisors say there is a requirement to put in more money if KCM is to be more viable.

”When Government suggested to KCM to recapitalise the mine, the other shareholders, Vedanta, responded by saying Government itself through ZCCM Investment Holding must put in money, Scott added.

Vedanta had also further suggested that they be allowed to borrow money from the local banks.

Dr Scott said the idea of borrowing money locally would not be okay as other sectors such as agriculture would be affected, he told lawmakers during question and answer sessions on Sept. 26.

Meanwhile, Minister of Mines, Energy and Water Development Christopher Yaluma earlier on Sept. 25 cited poor management of Konkola Copper Mines (KCM) as the major reason the mining firm has failed to pay the Copperbelt Energy Corporation (CEC) US$44 million in electricity bills.

KCM is currently going through serious financial challenges and that Government is closely monitoring the situation at the company to ensure it does not result in job losses.

He told lawmakers that is sad that the giant mining firm will not be able to meet the set production levels in the next quarter due to the power supply which has been restricted to 90 percent by CEC instead of the required 100 percent.

“Mr Speaker, although KCM is capable of running the mine, it will not manage to meet the production levels we have set in the next quarter due to the power restriction.

“But what I have to state is that KCM is going through serious financial challenges due to poor management of the mine and this has also resulted in the company failing to pay the money it owes CEC in electricity bills,” the Minister said.

Earlier, KCM, through its parent company Vedanta Resources mocked Zambians over its U$500 million profit being made annually in the Southern African country since it invested a paltry US$25 million in 2004.

And President Michael Sata had earlier warned the company against undertaking its planned mechanization of the mining company in which over 1,579 workers were to be laid off to replace them with machinery.

President Sata had also warned Vedanta to follow the country’s policy of seeking to create employment than facilitate “redundancies” to the nationals.

However, Shachinda in a statement has reaffirmed KCM’s commitment to remain in Zambia and contribute to the country’s growing economy and that there were no plans to leave the country in spite of the current problems being faced.

Vedanta Resources have since 2004 invested close to US$4 billion in operations and corporate social responsibility programs.

Source: Mining News Zambia
Industry News

‘Erratic power supply’, delayed vat refunds cost Chambishi Metals PLC revenue, affects mine expansion-ZCCM IH

Erratic power supply coupled with unpaid for US$23 million owed in Value Added Tax forced Chambishi Metals Plc, a unit of Enya Holdings Ltd. to incur losses during the just ended financial year, Zambia’s Holding company-ZCCM IH says in a report.

ZRA has withheld over US$600 million in value-added tax repayments to mining companies that have failed to provide importer documentation required to qualify them for VAT reclaim on the zero-rated copper exports.

In its report ahead of the planned Annual General Meeting (AGM) on 7 October in Lusaka, ZCCM IH, which holds 10 percent shares in the copper, cobalt and nickel producer says the Copperbelt based Chambishi metals lost US$9.5 million as a result of erratic power supplied to the mines.

Copperbelt Energy Corp. buys power from the country’s utility, Zesco and sells an average 520 megawatts daily to mines operating on the Copperbelt, Chambishi Metals Plc inclusive, to run and produce various metals including copper for onward exports to the international metal market.

According to the report, ZCCCM IH adds that the erratic power supply affected copper cobalt and nickel production at the miner during the financial year ended 31 March 2014, the report said citing ZCCN IH acting Chief Executive Officer, Mabvuto Chipata.

Accordingly, the erratic power outturn resulted in the mine losing out 3, 300 tons of Copper and 410 tons of Cobalt said Mr Chipata adding that during the year under review, Chambishi Metals Plc faced two notable strategic challenge.
“Chambishi’s copper production performance continued to be adversely affected by power fluctuations, which the company estimated resulted in losses amounting to $9.5million, of which $6.8 million resulted from lost production of 3,300 tons of Copper and 410 tons of Cobalt,” Chipata added.

The problem was compounded by the delayed resolution of the monies owed to various mining companies in Zambia by Government in value Added Tax (VAT) and the miner is one of those affected by the withheld tax refunds.

According to the report by Chipata, Chambishi Metals Plc is owed $6.5 million by ZRA in audit claims carried out during the period 2006 to 2011.

Additionally, it is owed a further $23 million by ZRA as at March 2014 relating to a Value Added Tax (VAT) refund, all which have contributed to the poor liquidity of the company.

“The matter remains unresolved but given that Chambishi estimates that 90 percent of its input costs are VAT related and deductable, the suspension has had a material effect on its day to day operations,” Chipata stated in his report.

Non Ferrous Mining Africa (NFA)’s capital expenditure on the South East Ore Body (SEOB) project is estimated at US$61.6 million during the year ended 31 March this year.

The expected investment cost for the project was estimated at approximately US$830 million and the project is expected when completed in or around 2017, create about 5,000 jobs.

Loan financing of US$548 million is being arranged from the Export-Import Bank of China to partially finance the South East Ore Body project with the balance coming from internally generated funds,” Chipata adds of the project.

The SEOB project involves mining and processing of copper ore to concentrate stage for onward processing into finished copper cathodes at the Zambian smelters within Chambishi, Mufulira and Kitwe.

ZCCM-IH has 10 percent equity in Chambishi Metals Plc while Enya Holding BV (ENRC Group, which once owned Luanshya Copper Mines before abandoning it at the height of the global financial crisis, owns 90 percent in the Chambish project.

Chambishi is a mining, tolling and refining company with extensive copper and cobalt reserves. It has undertaken several improvement and expansion projects that will streamline its operations and increase both the cobalt and copper production.

Source: Mining News Zambia
ZCCM-IH News

ZCCM-IH Pays first dividends to shareholders since inception

Zambia Consolidated Copper Mines Investment Holdings (ZCCM IH), the country’s mine holding company has since inception over 10 years ago paid dividends to the country, the company says on its website according to Bloomberg News wire.

According to the report, the company (MLZM), the company formed to hold the Zambian state’s minority stakes in local copper mines, has for this year managed to raise capital to pay dividends to the state since 2000.

The government will receive 220 million kwacha ($35 million), helping to bolster state revenues that Finance Minister Alexander Chikwanda last month said were “severely constrained.” Bloomberg cites finance minister Alexander Chikwanda as saying recently.

The company which is scheduled to hold its Annual General Meeting on 7 October in Lusaka this year disclosed the dividend in the 2014 annual report posted to its website. It’s the first since its formation, according to ZCCM data.

Zambia, Africa’s biggest copper producer after the Democratic Republic of Congo, owns 87.5 percent of ZCCM Investments.

The company holds stakes ranging from 10 percent to 30 percent in businesses that moved into private hands in the 1990s after the government reversed former president Kenneth Kaunda’s nationalization program.

ZCCM Investments Holdings Plc (ZCCM-IH) is one of Zambia’s prime investments holdings companies with the majority of its investments in the copper mining sector of Zambia. It is quoted on the Lusaka, London and Euronext Stock Exchanges.

The Company’s shareholders are the Government of the Republic of Zambia (GRZ) with 87.6% shareholding and private equity holders with 12.4%. Minority shareholders are spread throughout the world in various locations. ZCCM-IH is a successor company to Zambia Consolidated Copper Mines Limited (ZCCM Ltd).

Prior to privatization in 2000, ZCCM Ltd was a consolidated copper mining conglomerate which owned and operated a number of mining divisions which at privatization were sold off as independent mining companies.

ZCCM Ltd was majority owned 60.3% by the Government of the Republic of Zambia, 27.3% by Zambia Copper Investments Ltd (ZCI), an associate company of Anglo American Plc and 12.4% by private investors.

According to data on ZCCM IH website, the company owns 100 percent stake in Ndola Lime Company, 35 percent in Maamba Collieries Limited, 20.6 percent in Konkola Copper Mines, 20 percent in power provider to mines on the Copperbelt-Copperbelt Energy Corporation or ( CEC), 20 percent shares in Kansanshi Copper mine, a unit of First Quantum Minerals and 20 percent in Luanshya Copper Mine.

Other mines are 15 percent in Chambish Non Metals Corporation (CNMC), Luanshya Copper Mines, 15 percent, 10 percent in Non Ferrous Corporation Africa (NFCA plc), 10 percent in Chambishi Metals Limited and 10 percent in Mopani Copper Mines Limited, a unit of commodity trader, Glencore Xstratra.

Source: Zambian Mining Magazine
Investee Company News

Enviro company limits dust at Zambia copper mine

Environmental management company I-Cat Environmental Solutions is supplying Zambian copper mine Kansanshi, owned and operated by mining companies First Quantum Minerals and ZCCM-IH, with its GreenGrip gravel road sealant.

The sealant eliminates dust on the mine’s semipermanent roads, preventing the adverse effects of dust on miners and reducing maintenance costs caused by dust-related failures, explains I-Cat Zambia director Chris Smit.

He notes that GreenGrip, which is an environment-friendly polymer-based product, was first applied at the mine in June 2013.

“Normally, mines use water to get rid of dust, but by applying GreenGrip, you prolong the effect, as GreenGrip has a special ingredient mixed with the polymer that binds soil and seals the road.

Dust is a huge problem on Zambian mines, particularly at this time of year, owing to the dry and windy conditions

– Chris Smit

“Instead of water bowser trucks constantly spraying water, GreenGrip needs to be applied only once every two to three days, depending on the dust levels at the mine. This significantly reduces maintenance and associated costs,” Smit tells Mining Weekly.

He notes that, while Zambia currently has air-quality laws in place, Zambian mines do not often adhere to them. This, however, is starting to change, says Smit, as international companies, which need to adhere to a country’s laws to remain operational, are becoming more prevalent in Zambia’s mining industry.

Smit highlights that dust is a huge problem on Zambian mines, particularly at this time of year, owing to the dry and windy conditions.

“Many people work in plant and pit areas, and on haulage roads, which are very dusty. Dust affects their health and, by applying these products, mines can reduce the dust levels by 40% to 50%, making a significant difference to the health of mine personnel,” he emphasises.

Smit adds that temporary roads, particularly around pit areas, that are not treated with GreenGrip are, however, treated with RDC 20, which is a more cost-effective dust palliative product offered by I-Cat.

Supplying Zambian Mines
He notes that I-Cat has been supplying the Zambian market since 2011 with its liquid soil additive RDC 20, which binds fine soil into heavier particles to prevent dust from becoming airborne. I-Cat has also introduced its new bitumen-based GreenBit product, which can primarily be used on main haulage roads to prevent roads from being washed away by rain.

“Owing to heavy rainfall in Zambia, GreenBit was developed in 2013 for application on main haulage roads and is currently being used on ferrous metals miner Assmang’s Bruce and King mines, in the Northern Cape, South Africa, with huge success. We apply this product to roads in Zambia to stabilise the roads during rainy seasons,” he explains.

GreenBit, as the name suggests, has an additive mixed with a lower dose of bitumen, which reduces the environmentally harmful impact of the more traditional bitumen-based products.

“We are an environment-friendly company and, as such, we strive to supply products to mines that have the same effects as a bitumen road – commonly known as asphalt – but with lower toxicity levels.

“Our mission is to prevent environ- mentally harmful products from spilling into runoff streams and dams, which is why we developed green products such as GreenGrip and RDC 20.

I-Cat Zambia has been registered with the Zambian Environmental Management Agency (Zema) since 2012 and all its products have been tested and declared environment-friendly by Zema.

Source: Mining Weekly