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Investee Companies, Investee Company News

ZCCM-IH hires Rothschild & Co for Mopani Copper Mines restructuring

Zambian mining investment firm ZCCM-IH has hired investment bank Rothschild & Co for a strategic review of Mopani Copper Mines “to ensure its sustainability and continued development”, the state-owned company said on Wednesday.

In April, ZCCM-IH said it was seeking a financial adviser to restructure Mopani and help find a new external investor for the mining complex, which Glencore had sold back to the state in January last year.

Copper production at the more than 90-year-old mine and smelter complex has fallen and it has been struggling to pay suppliers on time.

“ZCCM-IH is committed to see that MCM delivers to its optimal production levels in order to contribute to the national production target of 3 million metric tonnes of copper by 2030,” the state firm said in a statement.

Restructuring is expected to be completed in six months, it added, with the option of a six-month extension. Rothschild & Co’s involvement would not disrupt business operations at the mine, the state firm said.

ZCCM-IH said it chose Rothschild & Co after a competitive procurement process in which five other domestic and international companies participated.

 

Source: https://www.mining.com/web/zambias-zccm-ih-hires-rothschild-co-for-mopani-copper-mines-restructuring/
Archived Tenders, ZCCM-IH

NOTICE OF BEST EVALUATED BIDDER

The Procurement Committee has authorised to award the contract for the procurement requirement to the “best evaluated bidder” as detailed below.
It is the intention of the Procuring Entity to place a contract with the named bidder after ten (10) working days from the date of display given below.

Procurement Reference Number ZCCM-IH/038/2022
Procurement Description Supply and Delivery 2,000 Ltrs Fuel Bowser (Diesel), 20,000 Ltrs Water Bowser
Method of Procurement Open National Bidding
Name of Best Evaluated Bidder: Lot 1. Saro Agro Industries Limited

Lot 2. Alidon Supplies Limited.
Address of the Best Evaluated Bidder:  Lot 1. Saro Agro Industries Limited, Plot No. 5284, Buyantanshi, Road Heavy Industrial Area, P.O. Box 35168, Lusaka, Zambia.

Lot 2. Alidon Supplies Limited, Plot No. 3515/18 Matandani Close, Lusaka Zambia.
Proposed Contract Prices Lot 1- ZMW135,346.63 VAT Inclusive, with a Delivery Period of; within 80 Days from Contract Date

Lot 2- ZMW1,918,703.30 VAT Inclusive, with a Delivery Period of; within 80 Days from Contract Date
Date Notification Issued 14Th June 2022
Date for End of Notification Period: 28th June 2022

Kindly note that this Notice does not constitute an award of contract to the bidder mentioned above. Bid acceptance and contract placement shall be in accordance with Part X of the Public Procurement Regulations.

Bidders have the right to appeal against the proposed award in accordance with Section 70 of the Public Procurement Act and Section 170 to 172 of the Regulations, provided the appeal is made within ten (10) days of the date of this notice.

Read the full document here: NOTICE OF BEST EVALUATED BIDDER – Supply and Delivery 2,000 Ltrs Fuel Bowser (Diesel), 20,000 Ltrs Water Bowser
Archived Jobs, ZCCM-IH

Job Advertisement: Risk Manager, Financial Accountant, Legal Assistant

ZCCM Investments Holdings PLC is an investments holdings company with diversified interests in mining, energy, and other sectors of the Zambian economy. The Company’s majority shareholder is the Industrial Development Corporation Ltd (IDC), an investment company wholly owned by the Zambian Government and the rest of the shareholders are institutional and private shareholders spread across the world.

The vision of the Company is “To be a World class investment holding company with a focus on mining”.

The Company “wishes to invite applications from suitably qualified and experienced persons who are innovative, energetic and performance driven to fill the following vacancies:

Table: Vacancies

JOB TITLE DIRECTORATE /
DEPARTMENT		 GRADE NO. REQUIRED SERVICE TYPE STATION
Risk Manager Risk ZH3 1 Fixed Term Contract Lusaka
Financial Accountant Finance ZH4 1 Permanent & Pensionable Lusaka
Legal Assistant Legal ZH5 1 Permanent & Pensionable Kitwe

Download Full Job details Below:

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JOB DESCRIPTION – RISK MANAGER

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JOB DESCRIPTION - FINANCIAL ACCOUNTANT

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JOB DESCRIPTION - LEGAL ASSISTANT

Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than Wednesday 15th June 2022.

Chief Human Resource & Administration Officer
ZCCM Investments Holdings Plc
ZCCM IH Office Park, Alick Nkhata Road
P O Box 30040
LUSAKA
Alternatively, forward your application to jobs@zccmnew.wpenginepowered.com
Investee Companies, Investee Company News, ZCCM-IH News

Why ZCCM-IH’s Courting of Copperbelt Energy Corporation Plc is Strategic

After leaving everyone in the dust at the recently ended mining Indaba in Cape town, Zambian mining players are shifting levers to ready for greater expansions and exploration investments. However to achieve that, power supply stability remains critical and this necessitated ZCCM-IH’s visit to power transmissions giant the Copperbelt Energy Corporation (CEC) Plc in the week.

The strategic nature of the visit is that it happened in the wake of a hat – trick of positives for Africa’s red metal producer namely record high base metal prices on the London Metal Exchange (LME), a newly signed Bulk Supply Agreement (BSA) after a 2 year bitter divorce between CEC and ZESCO Ltd and increased mining investment prospects to support the 3 million metric ton forecast for copper in the next 5-10 years time. Democratic Republic of Congos expansion prospects also pose a good fortunes for CEC as it supplies power to the Copperbelt of Africa. These factors further spell increased shareholders value for which ZCCM-IH is 24.1% in CEC Plc a company whose outlook is positive and whose shares are a must buy as energy demand is set to scale higher.

The decline in political risk post August has been a winner for the energy supplier following policy changes that supported a reversal in draconian statutory instrument 57 targeted at making the state utility a common carrier and this cost CEC massive impairments on its 2020 number. ZCCM – IH has a new board that have demonstrated strong business will to tap into Zambias mining boom with recently appointed board chair Dolika Banda leading the team on the mining road show as they court investee companies.

The mining investment vehicle has been strategic enough to create partnerships that will also ensure that financing is catered for to support smaller businesses such as SMEs that are tagged as downstream entities in the value addition chain in the faculty. ZCCM-IH inked a memorandum with Zambias largest bank Zanaco Plc to provide support to small to medium sized enterprises in their contribution to socio economic development.

Key areas of clarity that the mining fraternity will require is the recapitalization of Mopani copper mine with $300 million injection sought and a clearer path of the Konkola Copper Mine quagmire as these two areas continue to dampen investment posture. ZCCM-IH was spotted at Kagem mining where it holds 25% stake another lucrative investee company that is responsible for the worlds best emeralds.

Zambia will seek to drive strong economic recovery through mining which is currently bolstered by global decarbonization in the wake of the need to drive climate risk mitigation and adaptation stronger.

 

Source: https://thebusinesstelegraph.com/2022/06/04/why-zccm-ihs-courting-of-copperbelt-energy-corporation-plc-is-strategic/
Annual Report Summaries, Investee Companies

Kansanshi Mining Plc (Kansanshi) Extract from 2022 Annual Report

2022 was an operationally challenging year for Kansanshi on two main fronts, geology and hydrology. As the mine has gone deeper and the oxides are depleted, grades have deteriorated from an average of 1.0% in 2021 to 0.6% through 2022. This has significantly affected recoveries of both copper and gold. Similarly, mining at depth has increased water levels in the pit at a faster than anticipated rate, which also slowed down production. The challenges above resulted in substantial production declines. Copper produced was 146,282 tonnes, a sharp drop from 202,159 tonnes in 2021. Similarly, gold for the year was 109,617 ounces, declining from 128,199 ounces in 2021.  

For the year ended 31 December 2022, Kansanshi recorded revenue of ZMW25.98 billion (US$1.52 billion)(2021: ZMW39.57 billion (US$2.01 billion)). Net profit over the period also substantially reduced to ZMW2.62 billion (US$153.93 million) from ZMW12.09 billion (US$614.26 million) in 2021.  

The S3 expansion, which involves the setting up of an additional brand-new concentrator to address the challenge of the depleting oxides that have led to a reduction in ore grades and ultimately production volumes as the mine goes deeper and transitions into a predominantly sulphide mine from an oxide mine is scheduled to commence in 2023. The new concentrator will ensure that the mine has sufficient capacity to process additional lower grade ore to produce desired copper and gold production volumes.  

On 1st December 2022, ZCCM-IH and First Quantum Minerals reached an agreement where some of ZCCM-IH’s dividend rights would be converted to a 3.1% gross revenue life of mine royalty. The transaction is subject to the fulfilment of several conditions, including shareholder approval. It is expected to be completed in the first quarter of 2023.  

Dividends declared and paid during the year ended 31 December 2022 amounted to US$1.27 billion (2021: US$184 million).  
ZCCM-IH, ZCCM-IH News

ZCCM-IH and ZANACO sign MoU to support local SMEs’ participation in the mining supply value chain

ZCCM Investments Holdings Plc (ZCCM-IH and Zambia National Commercial Bank Plc (Zanaco) have signed a Memorandum of Understanding (MoU) aimed at fostering and providing growth opportunities that contribute to the participation of small and medium sized enterprises (SMEs) in the mining supply value chain in Zambia.

The MoU provides a framework of cooperation and collaboration between the two entities, that goes beyond identifying opportunities for increased local participation in the mining sector, to providing general corporate funding facilities availed by ZANACO.

Speaking during the signing ceremony, ZCCM-IH Board Chairperson Ms. Dolika Banda, said “this cooperation will help us identify opportunities for increased local participation in the mining sector predominantly, and this resonates with Government’s agenda of building a resilient and sustainable mining industry anchored on investments that deliver benefits to all Zambians. This agenda cannot be complete without local participation in the sector. We want to see our SMEs play a critical role in our mining value and supply chains.”

Speaking at the same function, ZANACO Board chairperson, Mr. Patrick Wanjelani said as a home-grown Bank, ZANACO believes in contributing to Zambia’s economic transformation, adding that “through this partnership, ZANACO will endeavour to provide financial support to qualifying SME’s through suitable banking products”. Mr Wanjelani further stated that the Bank will also provide capacity building through financial literacy training programmes on the products available to the mining value chain, urging local players to take advantage of this opportunity.
The agreement sets out terms that will ensure SMEs are equipped with the necessary tools, information and resources to actively participate in the industry and gain value to expand their businesses, create jobs and contribute to the social-economic development of our country.

This collaboration is aligned with the Government’s call to build and promote linkages aimed at promoting value addition in the mining sector.
Archived Tenders, ZCCM-IH

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR AN EQUITY INVESTMENT IN LIMESTONE RESOURCES LIMITED

REQUEST FOR EXPRESSIONS OF INTEREST (EOI) FOR AN EQUITY INVESTMENT IN LIMESTONE RESOURCES LIMITED

  1. Introduction

ZCCM Investments Holdings PLC (“ZCCM-IH” or the “Company”) is an investment holding company with significant interests in the Zambian mining industry. ZCCM-IH also has exposure to the financial services, energy and real estate sectors.
The Company has a primary listing on the Lusaka Securities Exchange, and secondary listings on the Paris Euronext and London Stock Exchanges.
The Zambian Government (GRZ) directly holds 17.25% shares in ZCCM-IH through the Ministry of Finance, and 60.28% indirectly through the Industrial Development Corporation (IDC), an investment company wholly owned by the Zambian Government. The remaining 22.47% is held by various institutional and individual shareholders. The geographical spread of the minority shareholders, who number around 4300, covers over 29 countries in Europe, Africa, the Caribbean, Australia, Asia and the USA.

Read the full document here: Limestone Resources Limited – CALL FOR EXPRESSION OF INTEREST
Investee Companies, Investee Company News

Mopani plans to resume cobalt production as prices rise

Zambia’s Mopani Copper Mines (MCM) plans to resume cobalt production that was halted more than a decade ago after international prices collapsed, an executive at state-owned ZCCM-IH said on Tuesday.

Accelerating sales of electric vehicles have fuelled a scramble for nickel, cobalt and lithium, propelling prices of the battery materials to multi-year highs.

Brian Musonda, chief investment officer at ZCCM-IH, Zambia’s mining investment arm, said the rising prices were a strong economic reason to restart cobalt processing.

“Going into next year, Mopani will start to process concentrates for cobalt and our plan is to produce something between 4,000 and 5,000 tonnes per year,” Musonda told Reuters.

Mopani would later ramp up production of cobalt, which the company historically mined as a by-product of copper, Musonda added.

“We have some material sitting on the surface. It was mined already as part of the copper ores but it could not be processed because the cobalt price was too low.”

Copper production in Zambia dropped to 800,696 tonnes last year from 837,996 tonnes the year before, data obtained from the nation’s statistics agency showed in March.

Cobalt production also dropped to 247 tonnes last year from 316 tonnes a year earlier, according to the Zambia Statistics Agency.

ZCCM-IH last year agreed to buy Glencore’s majority stake in Mopani Copper Mines in a $1.5 billion deal funded by debt and said it would seek a new investor.

The sale followed Glencore’s attempt to suspend operations at Mopani due to low copper prices and Covid-19 disruptions, prompting a government threat to revoke the company’s licences.

 

Source: https://www.mining.com/web/mopani-plans-to-resume-cobalt-production-as-prices-rise/
Annual Report Summaries, Investee Companies

CEC 24th AGM – Transcript of Proceedings

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

Download Full Transcript
Annual Report Summaries, Investee Companies

CEC 24th AGM – Transcript of the Auditor’s Presentation

Disclaimer:
The following transcript of proceedings of the 24th Annual General Meeting (AGM) held on 27 April 2022 is being delivered uncertified by Copperbelt Energy Corporation Plc (CEC).

The information in this transcript is for general information only. It should not be used as a substitute for specific and professional advice. Responsibility is disclaimed for any inaccuracies, errors or omissions. All expressions of opinion or advice are published on the basis that they are not to be regarded as expressing the official opinion of Copperbelt Energy Corporation Plc unless expressly stated. CEC accepts no responsibility for the accuracy of the opinions of information contained in this transcript.

Download Full Transcripts