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Annual Report Summaries, Investee Companies

Consolidated Gold Company of Zambia Limited (CGCZ) Extract from 2022 Annual Report

Consolidated Gold Company of Zambia Limited (CGCZ) is a joint venture partnership between ZCCM-IH (45%) and Karma Mining Services and Rural Development (55%). Incorporated in the year 2020, this Special Purpose Vehicle is focused on developing a gold processing and trading hub in Zambia.  

During the year ended 31 December 2022, the Company produced 50.7kg (2021: 46.6kg) of gold majority of which was sold to Zambia Gold Company. Income for the year ended 31 December 2022 was ZMW50.81 million (2021: loss of ZMW 44.97 million). CGCZ recorded a loss for the year of ZMW8.76 million (2021: -ZMW10.22 million).  

Due to persistent lack of profits as a result of the Company’s lack of control of the supply of gold feedstock, the ZCCM-IH Board approved a divestment from CGCZ. ZCCM-IH will still recover its initial investment of US$1.568 million over a period of three years.  
Investee Companies, Investee Company News

KANSANSHI DONATION TO CBU A MILESTONE

KANSANSHI Mine’s donation of mining survey equipment to the Copperbelt University (CBU) School of Mines could not have come at a better time than now. This is because survey equipment will not just serve as teaching aids but will help CBU to align its curriculum to industry needs. The modern equipment, one of the best on the market, will also improve teaching standards and practical aspects among students as they prepare to join the mining industry. For a long time, there seemed to be a mismatch between industry and the academic world. People who develop curriculum are usually not in sync with the demands of industry. Even when they are, they do not have appropriate equipment, so students graduate half-baked because they have no practical tools to work with.

As a result, graduates struggle and take long to settle in industry. This tends to make employers uncomfortable. At times, employers suspect that graduates may have forged the qualifications, when not. So, the gesture by Kansanshi is indeed commendable because the mining giant understands the need for learning institutions to have appropriate teaching aids. Rather than join the chorus of complaints about high learning institutions not aligning their curriculums to industry, the mining firm has chosen to walk the talk. Kansanshi has done well to make available state-of-the art equipment, which includes an electronic theodolite with a tripod and accessories critical for underground mine surveys. Assessments by institutions such as CBU are aligned with learning outcomes that help students reach the desired educational levels. The theory and practice reinforce what learners need to master and help them track their progress in the course and afterwards. Kansanshi Mine, as a potential employer, is being proactive by helping CBU shape the curriculum in line with the market demands CBU management will therefore take advantage of the equipment by revising the curriculum for students to have a clear understanding of what is expected of them in the field.

The CBU School of Mines will greatly improve teaching standards and practical aspects among students as they prepare to join the mining industry. The equipment from Kansanshi will aid CBU to review the current curriculum. This will see CBU graduating ready-for-work students. Research on curriculum alignment shows a strong correlation to student achievement. It also helps to modify courses and programmes to better target student post-tertiary success and make better use of human resources. Beyond this is the gesture by Optron Company, which supplied the equipment at a 10 percent discount after they learnt that the equipment was being bought for a learning institution.

The donation by Kansanshi to CBU is also timely as the new dawn administration embarks on economic diversification. Other companies should emulate Kansanshi by working closely with tertiary institutions. Donation may not necessarily be equipment but manpower, educational materials and internships. Apart from the equipment being used by the School of Mines, companies and individuals in need of such equipment should be able to lease it at a fee. Mining will continue to be part of the country’s economic mainstay, hence the need by CBU to continue aligning itself with the mining industry. In fact, the School of Mines should be doing a lot of consultation in the mining sector for the benefit of the lecturers, students and the school.

 

Read more: http://www.daily-mail.co.zm/kansanshi-donation-to-cbu-a-milestone/
Corporate Social Investment, ZCCM-IH

ZCCM-IH Donates to M’tendere Community Care Centre in Commemoration of International Women’s Day

ZCCM Investments Holdings (ZCCM-IH) in collaboration with Zambia Gold Company (ZGC) donated 8 foldable children’s wheelchairs, 1 walker, and assorted grocery items to the M’tendere Community Care Centre (CCC). The Centre caters to differently able children, offering community-based care to address therapeutical, mobility, and nutritional challenges.  

The M’tendere Community Care Centre (CCC) is run by the Special Hope Network (SHN), a faith-based organization in Zambia that works to combat various challenges faced by about 400 children who are differently-abled from four Community Care Centers. 

ZCCM-Investments Holdings (ZCCM-IH) undertakes a corporate social responsibility (CSR) activity to support a cause that benefits the disadvantaged in our communities, particularly women, children, and the youth, to commemorate International Women’s Day.  This year’s theme “Gender equality today for a sustainable tomorrow” allowed them to demonstrate their commitment to driving equality and support for the vulnerable in our communities. 

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ZCCM-IH, ZCCM-IH News

COPPER, CRUDE OIL PRICES KEEP RISING

PRICES of commodities such as crude oil and copper have continued rising on the international markets owing to concerns regarding supply disruptions as a result of the ongoing conflict between Russia and Ukraine.

In yesterday’s trading on the London Metal Exchange (LME), copper rose by 0.8 percentage point to US$10,291 a metric tonne and on the Shanghai Futures Exchange, it was trading at US$11,545.46 a metric tonne.

Other minerals such as lead gained 1.6 percent to US$2,536.5 and zinc also rose by 1.2 percent to US$4,186 a metric tonne, with gold trading at US$2,053.99 per ounce.

Crude oil prices have continued to surge as Russia’s invasion of Ukraine intensified and oil buyers shunned barrels from the world’s second-largest exporter, Russia.

Crude prices posted their largest weekly gains since the middle of 2020, with the Brent benchmark up 21 percent and United States crude gaining 26 percent. The most commonly traded oil futures closed at

Read more: http://www.daily-mail.co.zm/copper-crude-oil-prices-keep-rising/
Annual Report Summaries, Investee Companies

Resources Limited (LRL)/ Ndola Lime Company Limited Extract from 2022 Annual Report

Limestone Resources Limited (LRL) was barely operational for the most part of the year as both primary kilns (VK1 and VK2) were not functional. The collapse of refractory bricks on VK1 in 2021 had not yet been resolved while the historical fuel system challenges on VK2 were only resolved in July 2022. These works included multiple modifications to have the kiln operate using coal as the fuel, a much cheaper commodity than Heavy Fuel Oil in the original design.  

ZCCM-IH provided working capital funding to ignite and commission the kiln in August 2022 and the Kiln was fired up in September 2022. Even though the kiln is operational, it takes several months to attain stability in quality and production as different operating parameters are monitored and observed, and adjustments made accordingly. Further, LRL was not adequately capitalised for a long time and therefore continued to experience underperformance of its operating plant and equipment.  

ZCCM-IH continued to support the Company for its turnaround strategies.  

As a result of only being productive for the last 3 months of the year, LRL’s performance was substantially impacted, recording revenue of only ZMW26.8 million (2021: ZMW 119 million). The loss for the year was ZMW90.78 million (2021: ZMW39.7 million).  

There were no dividends declared during the period under review (December 2021: Nil)
ZCCM-IH, ZCCM-IH News

WE’RE ON TOP OF THINGS IN TERMS OF RESOLVING KCM, MOPANI ISSUES – MUSOKOTWANE

FINANCE and National Planning Minister Dr Situmbeko Musokotwane says government is working behind the scenes to resolve issues surrounding Konkola Copper Mines (in liquidation) and Mopani.

In an interview, Dr Musokotwane said government was already dealing with legacy issues from existing mines in order to increase mining output.

“In the plan to increase mining output, the government is already dealing with legacy issues from the existing mines. You know when the PF left, they left a big mess in KCM, put it under liquidation, so the output from that mine is obviously adversely affected. Government is working behind the scenes through ZCCM to resolve the issues of KCM. I can’t go into more details because these are delicate issues. Similarly, under PF, Mopani was also left in a limbo, the previous investors Glencore left behind a debt of billion Dollars. So once again that is a problem, if we don’t deal with that all the money coming out from the mines [will go] to service that debt left behind by the PF. There will be no money to develop the mine further so that it produces more copper. So once again this is something that is being done behind the scenes to see how we can get partners so that the mine is properly funded and it can contribute towards copper production,” he said.

Dr Musokotwane said powerful steps were being taken to increase copper production in the country.

“These are very powerful steps that are being taken so that we produce more copper. Look, the Congolese, who 10 years ago were only producing half of Zambia’s copper, today they are producing double that, of what Zambia produces in copper. Hence you see all this money that is [being] thrown around in Congo DRC, because it is from Copper, meaning we are behind. The good thing is that the government is on top of things to resolve all the legacy issues. We have also said that we are negotiating with investors so that there is copper value addition. We have been speaking to investors to say ‘in Zambia, we have an opportunity of turning into a country that makes more of the car engines in the world’, because car engines are moving away from petrol, to electrical motors. So we can actually manufacture most of the car engines of the future. Those are discussions that are underway with investors,” said Dr Musokotwane.

 

Source: https://diggers.news/business/2022/03/08/were-on-top-of-things-in-terms-of-resolving-kcm-mopani-issues-musokotwane/
ZCCM-IH, ZCCM-IH News

DEVELOPMENT OF ZAMBIA’S NEW MINING POLICY COMPLETED

Government has completed developing Zambia’s new mining policy that will speak to the aspirations of the new dawn administration’s objectives for the sector and will announce the consolidated document by June this year.

Mines and Minerals Development Minister Paul Kabuswe disclosed to Phoenix News that the team of technocrats at the ministry that was tasked to come up with the document have submitted it to his office and that he is currently reviewing the document.

Mr. Kabuswe says the document is comprehensive but once reviewed, is expected to take into account, comments from various stakeholders, resolutions made at the 2021 Zambia mining indaba from which the mining fiscal regime was already changed in the 2022 national budget, and to shape the trajectory of the sector going forward.

He adds that the document will soon be availed to stakeholders before it is released to the general public although he was quick to mention that while the approach is all-inclusive and will appreciate comments from numerous interest groups, there will be a few submissions that may not be admitted into the impending mining policy.

 

Source: https://www.phoenixfm.co.zm/business/developing-of-zambias-new-mining-policy-completed/
Annual Report Summaries, Investee Companies

CNMC Luanshya Copper Mines Plc (CLM) Extract from 2022 Annual Report

For the year ended 31 December 2022, CLM recorded revenue of ZMW 7.95 billion (US$ 466.26 million), (2021: ZMW 10.17 billion (US$ 516.69 million)). The drop in year-on-year revenue was attributable to a slight reduction in copper prices and production. CLM produced a total of 55,597 tonnes of copper for the year under review compared to copper output of 57,786 tonnes produced in the 2021 financial year.  

For the year ended 31 December 2022, the Company recorded a profit of ZMW1.68 billion (US$ 99.71 million) (2021: ZMW2.83 billion (US$ 143.71 million)).  

Due to the positive equity position, the Company declared dividends of ZMW 1.63 million (US$ 80 million) with ZMW 0.31 million (US$16 million) paid to ZCCM-IH (2021: Nil).  
ZCCM-IH, ZCCM-IH News

ZAMBIA’S PRESIDENT TO ATTEND AT INVESTING IN AFRICAN MINING INDABA

Investing in African Mining Indaba (www.MiningIndaba.com) is pleased to announce that the President of the Republic of Zambia, Hakainde Hichilema has confirmed his attendance at the Investing in African Mining Indaba, taking place in Cape Town from 9 – 12 May 2022.

Newly elected President Hichilema, who was inaugurated in August 2021, has been hailed as an inspiration after he reversed his fortunes – having been imprisoned for 127 days after the 2016 elections he went on to secure a landslide victory in the 2021 polls.

Now the seventh president of Zambia, President Hichilema has pledged to foster a better democracy through respect for the rule of law, restoring order, and protecting human rights. He also hopes to restore confidence in the country as a mining investment destination.

Zambia’s mining investment climate deteriorated in recent years as the previous administration pursued resource nationalism, leading to damaged relationships with investors and lower levels of investment. According to the Zambia Extractive Industries Transparency Initiative, mining accounted for 79.5% of Zambia’s total exports and nearly 31.4% of government revenues in 2020.

President Hichilema is expected to share his vision of a new dawn for Zambia, in which macroeconomic stability is restored and sustainable, inclusive economic growth is promoted. Believing that the mining sector can be an important catalyst for national development, his government is looking to significantly increase the production of copper and other minerals so that Zambia can reclaim its place as a leading miner on the continent. To support these ambitions President Hichilema has already introduced a friendlier mining tax regime and made clear his intention to bring stability to the sector, as well as ensuring regulatory fairness and the elimination of obstacles that stand in the way of new investment.

The President believes that stronger relationships – between the government, miners and local communities – will improve equitable growth and help the country to deliver for its citizens.

The Mining Indaba is back in person this year and we are looking at the future, at moving forward. The programme content for 2022 is geared towards exploring the key drivers of investment decisions within the African mining market and forging the future direction of the African mining industry.

The overarching theme: ‘Evolution of African Mining: Investing in the Energy Transition, ESG and the Economies’ is set to inspire new approaches, spark conversations and encourage partnerships that will truly transform mining on the continent.

 

Source: https://www.devdiscourse.com/article/business/1943004-zambia-president-to-attend-at-investing-in-african-mining-indaba
ZCCM-IH, ZCCM-IH News

ZCCM IH REGISTERS K2BN PROFIT

ZCCM Investments Holdings (ZCCM-IH) has recorded a 273% increase in profit to K2.13 billion as at December, 2020 from K307 million in 2019.

The company attributes the increase in profit in associate companies to K1.48 billion from K420 million recorded in December 2019.

ZCCM-IH company secretary, Chabby Chabala said this is due to increase in the profitability of Maamba Collieries Limited, CNMC Luanshya Copper Mines Plc, Non-Ferrous Corporate Africa Mining Pls and Kansanshi Mining Plc.

Mr Chabala also said the company recorded an increase in revenue to over K113 million from about K62.4 million.

 

Source: Daily Mail Zambia