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Zambia Shores up Gold Reserves

This week, Bank of Zambia Governor Mr Christopher Mvunga told the media that the institution would continue to purchase gold monthly to cushion the country against the shocks caused by COVID-19.

The gold purchases are being done through the state-owned ZCCM IH and Kasenseli Gold Mining Limited as part of efforts to stabilise the kwacha.

”We are receiving various inquiries as to whether we are selling the gold or not but we have made it clear that we are not and we are principally buying the commodity as an international instrument and not trading,” Mr Mvunga said.

“We are foreseeing that at some point the exchange rate would stabilise and show some signs of recovery as there is a strong investor confidence in the economy making inquiries and others are already coming on the market.”

He said at the appropriate time, the Bank of Zambia would start selling gold.

Zambia is now one of at least 10 countries that have been net buyers of gold since 2020, among them Russia and China who collectively added 483 tonnes of bullion to their reserves.

The Bank of Canada has liquidated most of its reserves in recent times while Venezuela is in the process of doing the same to pay off its debts.

Source: https://southerntimesafrica.com/zambia-shores-up-gold-reserves/
Annual Report Summaries, Investee Companies

Zambia Gold Company Limited (ZGC) Extract from 2021 Annual Report

Zambia Gold Company Limited (ZGC) reported revenue of ZMW68.29 million (2020: ZMW59.7 million) for the year ended 31 Dec 2021. During the period under review, 62.02 Kg of gold was sold to the Bank of Zambia. Net profit recorded for the period was ZMW5.76 million (2020: ZMW32.02 million). 

For the period under review, ZGC produced a total of 49.99 kg of gold against a budget of 183.56 kg. This variance was largely due to lower production at the Kasenseli mining project due to equipment unavailability in the first 2 quarters of the year and optimization of the processing lines installed in the financial year.

Further, following a review by the Ministry of Mines and Minerals Development (MoMMD), mining operations at the Kasenseli mine were suspended due to safety concerns among other things. Management at ZGC shall continue to engage MoMMD to resolve this matter in order to resume operations. 

ZGC shall continue conducting exploration activities with an estimated resource statement to be completed in 2022. 

There were no dividends declared during the period under review (December 2020: Nil)
All Posts, Investee Companies

Increasing production & not finding equity partner for Mopani is our focus – ZCCM IH

ZCCM Investments Holdings (ZCCM-IH) has dispelled assertions that they are more focused on finding an equity partner than driving production and keeping Mopani Copper Mines in local Zambian hands.

ZCCM IH acquired Mopani Copper Mines from Glencore and FQM. The move received wide ranging support from the mining unions, suppliers and communities on the Copperbelt and accross the country as it was seen as a move to have a wholly owned Zambian Coppper mine. But comcerns have been raised after indications from the mines ministry that that foreign equity partners have expressed interest in taking over the mines.

However, ZCCM IH which is the holding company has told the Zambian Business Times – ZBT that they are currently focusing on ensuring the development and growth of Mopani Copper Mine Plc’s production to generate more revenue for the company. ZCCM-IH Public Relations Manager Loisa Mbatha-Kakoma said the focus for Mopani Coper Mine was on mining and producing copper to ensure more revenue was generated for both current and future operations.

When asked on how far plans have gone to get onboard an equity partner and if the move confirmed fears that a local Zambian management cannot run the large copper mine, Mbatha-Kakoma said, “As you can understand, this is a high quality asset of which there are not many out there in the world. “Therefore it is not surprising that we were approached by several interested parties.

“Our focus for now is to ensure the development and growth of the mine in terms of production by the current Mopani management team who have so far had a provided a good track record,” she said. Mbatha-Kakoma said post deal closure, Mopani has continued operating normally and able to meet its operational needs.

She said all jobs have been retained with a new collective agreement concluded in record time. Mbatha-Kakoma said the Company is currently using its sales revenue to sustain its operations.

“Both Mining and Processing have continued without disruptions and the focus now is on mining and producing Copper so that more revenue is generated for both current and future operations,” he said. Government through ZCCM-IH acquired a majority stake in Mopani Copper Mine following a conclusion in negotiations with Glencore recently.

Source: https://zambianbusinesstimes.com/increasing-production-not-finding-equity-partner-for-mopani-is-our-focus-zccm-ih/
Investee Companies, Investee Company News

1kg of gold now fetching K1.2m – ZCCM IH

Zambia Consolidated Copper Mines Investments Holdings (ZCCM-IH) says it is currently offering a very competitive price for buying gold in the country at K1,150 per gram (about K1.2m for 1kg of gold), which is in line with global gold prices.

ZCCM-IH public relations manager Loisa Mbatha-Kakoma told the Zambian Business Times – ZBT that ZCCM-IH’s pricing has been competitive considering its presence in the market since it started and has raised the prices from the previous prices of about K250 per gram to have more market reflective pricing.

“Our pricing has actually been competitive considering our presence in the market since we started; we raised the prices from the previous unofficial exploitative ones of K250 per gram to have more market reflective pricing. We reached as high as K1,150 per gram from December 2020 to early this year,” she said.

Meanwhile, the price of gold being offered on the black market or by private buyers is currently K1,100 per gram.

Mbatha-Kakoma said in addition, ZCCM-IH does not charge any tax when buying the gold as it pays the tax on behalf of the artisanal small-scale miners.

“We do not charge any tax when buying the gold, as a matter of fact; we actually pay the tax on their behalf. Therefore, our pricing still remains competitive on the market and reflective of the global prices,” she reiterated.

Mbatha-Kakoma said the buying programme of gold is ongoing, and that ZCCM-IH has continued undertaking stakeholder awareness and engagement on the program. She said further, the company has so far set up gold-buying centres in strategic panning areas such as Lumezi, Vubwi and Rufunsa districts.

She also disclosed that from June 2020 to March 2021, the Zambia Gold Company, which is part of ZCCM-IH, has produced cumulative of 91 kilograms (KGs) of gold. Mbatha-Kakoma said that monthly production of gold varies depending on the availability of ore material.

She said in terms of formalizing artisanal small scale miners, ZCCM-IH’s role is working with licensed artisanal miners. Mbatha-Kakoma said so far, it was working with registered and licensed cooperatives in Rufunsa, Vubwi and Lumezi.

In March 2020, ZCCM-IH started buying gold from artisanal and small-scale miners in the country. However, some artisanal gold miners had complained to ZBT stating that the black market prices were more attractive, leading to most Gold not being mopped up by the formal market.

Source: https://zambianbusinesstimes.com/local-gold-prices-now-very-attractive-zccm-ih/
Annual Report Summaries, Investee Companies

Mushe Milling Company Limited Extract from 2021 Annual Report

Mushe Milling Limited (MML) earned a total of ZMW38.15 million in revenue for the year ended 31 

December 2021 (2020: ZMW106.46 million). MML recorded a net loss of ZMW48.14 million (2020: 

ZMW19.65 million loss). 

The Company remained undercapitalised with a negative equity position and current liabilities in 

excess of ZMW45 million. Due to its consistent weak financial position, only minimal debt amounts 

could be settled by the Company during the period and operations were temporarily halted 

due to MML’s inability to purchase its own maize stock. ZCCM-IH intervened by entering into a 

maize supply agency agreement with MML in order to revive operations in Q1 of 2021. 

There were no dividends declared during the period under review (2020: Nil). 
ZCCM-IH, ZCCM-IH News

Copper price reaches $10,628 a tonne

KALONDE NYATI, Lusaka

WITH copper prices yesterday climbing to record high in both London and Shanghai markets, Zambia Consolidated Copper Mines -Investments Holdings (ZCCM-IH) is optimistic that the development will boost revenue for Mopani Copper Mines.
The prices have continued rising breaching the US$10,000 mark as hopes of improved demand and tight supply fuelled sentiment.
Three-month copper on the London Metal Exchange touched its all-time high level of US$10,660 a tonne earlier in the session before easing to US$10,628 a tonne, but still up by two percent.
The most-traded June copper contract on the Shanghai Futures Exchange climbed by 4.2 percent to 77,260 yuan (US$12,014) a tonne.
ZCCM-IH chief investments officer Brian Musonda said with the acquisition of the mine by his organisation on behalf of CLICK TO READ MORE

Source: http://www.daily-mail.co.zm/copper-price-reaches-10628-a-tonne/
ZCCM-IH, ZCCM-IH News

GWEMBE OIL EXPLORATION STILL ACTIVE

By JOHN KOMBE GOVERNMENT is still carrying out explorations to ascertain the presence of oil in the Gwembe Valley and that results cannot be rushed without concluding the process. Gwembe District Commissioner Timothy Siakaziba, said Government had tasked ZCCM-IH to carry out the investigations and was confident that the company would deliver its mandate. Mr Siakaziba was reacting to sentiments by some stakeholders who included traditional and civic leaders, who accused Government of delaying the oil exploration in the valley. He said that ZCCM-IH had visited the area and collected samples for further investigations. According to him, the undertaking was a mammoth that required systematic investigations before a conclusive position could be made. Mr Siakaziba said Government was on top of things and the public and stakeholders would get the position once the investigations were concluded. He wondered why some stakeholders were asking ZCCM-IH to declare that it had failed the project when the holding firm was following the technical procedure on the matter. Mr Siakaziba said that rushing the results was not the best option as resolutions must be based on scientific evidence. And ZCCM-IH public relations manager, Louisa Kakoma, earlier confirmed that the company was still carrying out investigations on the samples and would submit results once the process was completed.

Source: http://www.newszambia.co.zm/gwembe-oil-exploration-still-active
ZCCM-IH, ZCCM-IH News

MINERS THANK GOVT

By Musenge Mulimba:

Miners in Kitwe on the Copperbelt have thanked government for saving thousands of jobs through the takeover of Mopani Copper mines by ZCCM-IH.

National Union of Miners and Allied Workers -NUMAW- President James Chansa has commended President Edgar Lungu for prioritizing the plight of Miners in the Country.

Speaking during a joint media briefing with the Mine Workers Union of Zambia, Mr. Chansa urged miners to work hard and improve productivity amid the high Copper prices.

And MUZ President Joseph Chewe appealed to Government through the ministry of mines to consider paying Mopani miners their terminal benefits before transferring them to ZCCM-IH.

Mr. Chewe also pleaded with Stanbic bank to consider renegotiating charges on various loan and financial packages given to the miners.

 

Source: https://www.znbc.co.zm/news/miners-thanks-govt/
Investee Companies, Investee Company News

STATE PRIORITISES GOLD PROCESSING

GOVERNMENT has engaged ZCCM-IH Gold Mining Company to start processing and grading gold from all mining sites in the country, Ministry of Mines and Mineral Development director of mines, Fred Banda has said.

Mr Banda said that gold processing was a very important part of the gold value chain and hence the government’s resolve to prioritise the venture.

He said ZCCM-IH Gold would work with the gold mining cooperatives and ensure that the gold was processed and graded for sale to the Bank of Zambia

Mr Banda said that the gold mining company would not fix the price, but this would be done in liaison with the cooperatives who were a key stakeholder in the gold mining value chain.

He urged all gold mining cooperatives to work with the gold mining company incorporated by ZCCM-IH to be responsible for processing of the gold.

Mr Banda assured the cooperatives that the government would ensure that they get value for their input.

“We will ensure that they get a good price for their gold,” he said.

Mr. Banda also urged the miners not to trade with illegal buyers, but only do business with ZCCM-IH who were the government buyer for the commodity.

And Rufunsa’s Chimwetu Gold Mining Cooperative chairman, Emmanuel Tembo thanked the government for the support to the small-scale miners.

Meanwhile, Pokela Gold Mining Cooperative vice chairman, Josias Malunga assured the government that the cooperatives would process and sell their gold to the Zambia Consolidated Gold Mining Company so as to ensure that they got the best out of their mining activities.

Source: https://dailynationzambia.com/2021/05/12/state-prioritises-gold-processing/