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Invitation for Bids (IFB) Construction of Low-Cost Houses, Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District

Construction of Low-Cost Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District
ONB No.: ZCCM-IH/115/2020

  1. ZCCM Investments Holdings Plc. has received financing from own sources toward the CAPEX for the 2020 Financial Year, and it intends to apply part of the proceeds of this financing to payments under the Contract for the Construction Works in Kasenseli, Mwinilunga District; Contract No.: ZCCM-IH/115/2020.
  2. ZCCM Investments Holdings Plc now invites sealed bids from eligible and qualified bidders for the Construction Works in Kasenseli, Mwinilunga:

    Lot 1 – Construction of Two (02) x 3-Bedroomed Low-Cost Houses in Kasenseli, Mwinilunga District (Duration – 16 weeks);
    Lot 2 – Construction of a Rural Health Centre in Kasenseli, Mwinilunga District (Duration – 16 weeks); and
    Lot 3 – Siting, Drilling, and Equipping of a Borehole at the Rural Health Centre in Kasenseli, in Mwinilunga District (Duration – 6 weeks).

  3. Bidding will be conducted through the Open National Bidding (ONB) procedures specified in the Public Procurement Act of 2008 and the Public Procurement Regulations of 2011 and is open to all bidders from Eligible Source Countries as defined in the Bidding Documents. The following CEEC preferential treatment shall be applied as part of the evaluation:
    1. Citizen-influenced company – 4%
    2. Citizen-empowered company – 8%
    3. Citizen-owned company – 12%
  4. Interested eligible bidders may obtain further information from the address below and inspect the Bidding Documents at this address from 08:00 – 13:00 and 14:00 – 17:00 local time, Monday to Friday inclusive.
  5. Qualifications requirements include:
    i) Experience as a prime contractor in at least two (02) contracts of a similar nature and scope in the last five (05) years;
    ii) A minimum amount of liquid assets and/or credit facilities as follows:
    Lot 1 – ZMW338,536;
    Lot 2 – ZMW320,248; and
    Lot 3 – ZMW196,000.
    iii) Average Annual Turnover for the past three (03) years as follows:
    Lot 1 – ZMW5,501,120;
    Lot 2 – ZMW5,204,030; and
    Lot 3 – ZMW6,361,244.

  6. A complete set of Bidding Documents in English may be purchased by interested bidders ON THE SUBMISSION OF A WRITTEN APPLICATION to the address below and upon payment of a non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00).

  7. Due to the COVID-19 pandemic, ZCCM-IH is requesting all potential bidders to deposit the non-refundable fee of Zambian Kwacha Five Hundred (ZMW500.00) stated in item 6 above into the following ZCCM-IH Account:
    BANK: STANDARD CHARTERED BANK
    BRANCH: Main Branch
    ACCOUNT NAME: ZCCM INVESTMENTS HOLDINGS PLC
    ACCOUNT NUMBER: 0100110001501
    Currency: ZMW or USD equivalent.

  8. Bids must be delivered to the address below at or before 10:00 hours on Friday, 8th January 2021. Electronic bidding shall not be permitted. Late bids will be rejected. Bids will be opened physically in the presence of the bidders’ representatives who choose to attend in person at the address below immediately after 10:00 hours on 8th January 2021. All bids must be accompanied by a Bid Securing Declaration.
  9. There will be mandatory site visits and pre-bid conferences as follows:
    Lot 1 – Construction of Two (02) 3-Bedroomed Low-Cost Houses in Kasenseli, Mwinilunga District on Tuesday, 29th December 2020 at 14:00 hours.
    Lot 2 – Construction of a Rural Health Centre in Kasenseli, Mwinilunga district on Tuesday, 29th December 2020 at 14:00 hours; and
    Lot 3 – Siting, Drilling, and Equipping of a Borehole at the Rural Health Centre in Kasenseli, in Mwinilunga District on Tuesday, 29th December 2020 at 14:00 hours.
    Bidders to meet at the District Commissioner’s Office in Mwinilunga at 13:00 hours.
  10. The address referred to above is:

    K D Kabwe (Mrs.)
    ZCCM Investments Holdings Plc.
    ZCCM-IH Office Park, Stand No. 16806
    Alick Nkhata Road, Mass Media Complex Area
    Lusaka, Zambia
    Tel: +260-211-388000
    E-mail: kabwek@zccmnew.wpenginepowered.com; and temboc@zccmnew.wpenginepowered.com

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Construction of Low Cost Houses, Rural Health Centre and Drilling of a Borehole in Kasenseli in Mwinilunga District

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Illegal Miners Invade Kasenseli Gold Mine

A group of illegal miners in Mwinilunga District have brought down a parameter fence covering Kasenseli Gold Mine.

And the group has allegedly stolen undisclosed quantities of alluvial gold after invading the mining premises.

Mwinilunga District Commissioner Anolt Mapulanga who confirmed the incident has expressed disappointment with the recent developments.

Mr. Mapulanga said those behind the behaviour need to realise that the infrastructure they are destroying belongs to Zambians and their act is irresponsible.

He stated that the Zambia Police has been directed to step up its security to ensure installations are not tempered with.

Mr. Mapulanga added that his office will not watch criminal elements disregard the law with impunity and engage in retrogressive activities.

“Government will sit down and allow criminality, the installation by ZCCM Gold is being done on behalf of all Zambians and it is it sad to see the same zambians vandalising the infrastructure.

Source: https://zambiareports.com/2020/12/03/illegal-miners-invade-kasenseli-gold-mine/
Industry News, ZCCM-IH News

ZCCM IH reduces appetite for banking and milling

Finance, ZCCM-Investment Holdings Plc

Written by 

During the last six months of the 2020 financial half-year of ZCCM IH, a proposal was tabled that would see the investment group reduce its stake in banking and milling.

According to sources close to the matter, ZCCM IH has been in the process of recrafting their strategic plan. This refinement in strategy comes with the blessings of IDC who are the parents of the investment group.

“Industrial Development Corporation (IDC) Group CEO Mr Mateyo Kaluba has said ZCCM-IH will take up a more active role as an investor in the mining sector rather than being a holding company for the Government’s minority shares”, read a statement published on the ZCCM IH website after the IDC CEO toured Kabundi Resources Limited mine, ZCCM-IH’s manganese mining operation in Serenje district.

This was a very strong signal that indicated that IDC along with ZCCM IH would seek out a strategic path that would see IDC increase its investment umbrella by snapping up ZCCM IH’s banking and milling interests.

According to a SENS announcement published on 1st October 2020, through the IDC Reorganization Transaction initiative, the Board of ZCCM-IH considered and approved the proposed IDC/ZCCM-IH Group reorganization exercise whereby:

  1. IDC transfers its 25% equity stake in Kagem Mining Limited, at fair market value, to ZCCM IH;
  2. ZCCM-IH transfers its 71.4% equity stake in Investrust Bank PLC, at fair market value to IDC; and
  • iii) ZCCM-IH transfers its 100% stake in Mushe Milling Limited to IDC at fair market value.

These 3 corporate actions listed above will be undertaken simultaneously as a corporate group reorganization exercise involving IDC and ZCCM-IH and constitute the proposed Group Portfolio Rationalization and Reorganization.

Based on the IDC CEO’s statement, it can be deduced that the stars are being aligned for ZCCM IH to increase its focus on mining whilst reducing its arm of influence over sectors that have potential to be a distraction. What this entails is ZCCM IH seeking out a healthier chunk in shareholding for mining assets that become available over the near and long term.

No doubt CEO Mabvuto Chipata will be aligning his charges and ensure that they apply their skills sets on the refined strategic mandate that is beginning to unfold.
Investee Companies, Investee Company News, ZCCM-IH, ZCCM-IH News

ZCCM-IH to appeal court decision asking it to enter arbitration with Vedanta

ZAMBIAN mines minister, Richard Musukwa, said the country’s government remained steadfast in its desire to find a buyer for control of Konkola Copper Mines (KCM), currently owned by Vedanta Resources.

“It is still the government’s wish to find a new equity investor with technical and financial capacity to recapitalise the mine and operate it effectively,” Musukwa said after the state mining arm ZCCM-IH signalled its intention to appeal a court ruling in favour of Vedanta.

Earlier this month, a Court of Appeal ruled that ZCCM-IH should go into arbitration with Vedanta regarding disputes related to KCM. Vedanta owns 80% of KCM with ZCCM-IH owning the balance. Musukwa, however, said the country wanted KCM to be put into liquidation proceedings.

In 2019, Zambia accused Vedanta of failing to live up to its investment and dividend promises and barred the Indian company from accessing KCM assets. Vedanta argued that any dispute between shareholders should be negotiated in terms of their agreement.

“ZCCM-IH has already indicated that they are appealing because they are not happy with the court judgment,” Musukwa told Zambia’s parliament on Thursday.

Potential buyers of KCM were awaiting a resolution to the dispute, Musukwa said, adding that steps taken by the government should not be “considered as nationalism”.

Vedanta was not immediately available for comment, said Reuters.

Source: miningmx
Investee Companies, Investee Company News

UPDATE 1-Zambia to appeal court ruling backing Vedanta in KCM mine dispute

LUSAKA, Nov 26 (Reuters) – Zambia’s state mining arm ZCCM-IH plans to appeal a court ruling in favour of Vedanta , which has sought arbitration in a dispute over its jointly owned copper mine that is facing liquidation, the mining minister said.

India-based Vedanta has been locked in a protracted dispute with the Zambian government since May 2019, when Lusaka appointed a liquidator for the mine.

 

“ZCCM-IH has already indicated that they are appealing because they are not happy with the court judgment,” Mining Minister Richard Musukwa told parliament on Thursday.

Last week, a Zambian court ordered a halt to liquidation proceedings for Konkola Copper Mines (KCM) to allow Vedanta and ZCCM-IH, which owns 20% of the operation, to proceed to arbitration.

Potential buyers of KCM were awaiting a resolution to the dispute, Musukwa said, adding that steps taken by the government should not be “considered as nationalism”.

“It is still the government’s wish to find a new equity investor with technical and financial capacity to recapitalise the mine and operate it effectively,” he said.

Vedanta was not immediately available for comment. (Reporting by Chris Mfula; Writing by Zandi Shabalala; Editing by Edmund Blair)

Source: Reuters 
Industry News, ZCCM-IH, ZCCM-IH News

Kansanshi Holdings Limited Commences Confidential Arbitration Proceedings Against ZCCM Investments Holdings Plc

In compliance with the requirements of the Securities Act No 41 of 2016 and the Lusaka Securities Exchange (“LuSE”) Listings Requirements (the “Rules”), shareholders are informed that on 11 November 2019, KHL filed a Request for Arbitration in London against ZCCM-IH (as Respondent) and KMP (as Nominal Respondent). These Arbitration proceedings are strictly confidential as between the parties. The Arbitration proceedings follow a criminal complaint made by ZCCM-IH against the allegedly unauthorised transfer by KMP of KMP monies to a KHL related party/affiliate.

The matter is yet to be determined and may have a material effect on the price of the Company’s securities.

Shareholders will be updated as the case progresses.

Accordingly, shareholders of ZCCM-IH are accordingly advised to exercise caution when dealing in securities of the Company until further information is published.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Wednesday, 25 November 2020

Source: Financial Insights
Industry News, ZCCM-IH News

Zambia’s copper output increases amid foreign debt default

Zambia, Africa’s second-largest copper miner, produced 646,111 tonnes of the metal in the first nine months of 2020, up from 590,321 tonnes in the same period last year, official figures show.

The country’s mines and minerals ministry attributed the 9.45% rise to increased mine output. He said the in southern African nation now expects total production for the year to reach 820,000 tonnes, driven by rising copper prices.

This comes as good news to Zambia, which missed a $42.5 million interest payment on part of its international debt last week, becoming Africa’s first bond default during the coronavirus pandemic.

ZAMBIA’S MINING ASSETS HAVE BEEN IN THE SPOTLIGHT AS THE COUNTRY’S FINANCIAL SITUATION DETERIORATED THIS YEAR AND THE PANDEMIC PROMPTED GLENCORE TO SHUT ITS MOPANI COPPER MINES

Pesident Edgar Lungu’s government, which is battling for re-election next year, has blamed covid-19 for problems managing the country’s $12 billion debt.

While it seeks a compromise with bondholders, the government has announced it has no plans to sell its shares in mining companies it has stakes in to raise cash.

Zambia’s mining assets have been in the spotlight as the country’s financial situation deteriorated this year and the pandemic prompted Glencore (LON: GLEN), one of the biggest miners operating in the country, to shut its Mopani Copper Mines (MCM).

The move angered the government, which threatened to revoke Mopani’s mining licenses and temporarily blocked its chief executive officer Nathan Bullock from leaving the country. 

Glencore reacted by putting its 73.1% stake in the operation on the table, hoping to reach a deal with authorities.

No plans to sell mining stakes

Zambia said earlier this week that negotiations with Glencore about increasing the government’s stake in Mopani were nearing a conclusion, although no information about the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire was given.

The government, which was in arbitration over mining assets it seized last year from billionaire Anil Agarwal’s Vedanta Resources, lost an important battle in the case on Friday.

A local court ordered a halt to liquidation proceedings KCM to allow owners Vedanta and ZCCM-IH to proceed to arbitration.

The ruling hands a significant win to Vedanta, which is seeking the removal of the liquidator appointed by ZCCM-IH — which owns 20% of KCM on the government’s behalf — to run the company.

Other copper miners have halted $2 billion of planned investments because of a dispute over royalty taxes.

Zambia has promised to address the issue at a mining conference later this year.

– With files from Reuters and Bloomberg

Source: Mining.com
Industry News, ZCCM-IH, ZCCM-IH News

Zambia: government wants to complete buyout of Glencore’s stake in Mopani Copper Mines within a month

(Ecofin Agency) – Zambia is expected to complete a majority stake in Switzerland’s local subsidiary Glencore, which owns various copper mines in the country, within a month. According to the Minister of Mines, financing will not be a problem, despite the current state of public finances.

In Zambia, Glencore could soon cede to the state all or part of its interest (73.1%) in Mopani Copper Mines, a local subsidiary active in the copper mines of the Swiss commodities giant. At least that is what emerges from the words of Barnaby Mulenga (photo), permanent secretary at the Zambian Ministry of Mines, who foresees the end of the negotiations within a month, without specifying the importance of the participation that the national company ZCCM Investments Holdings is trying to acquire.

If the country has been in “payment default” for several weeks, according to the rating agency S&P, raising the necessary funds for the operation does not appear to be a problem. However, we learn, the funding will not come from the public treasury.

“The resource attracts money, so the question of financing is the last worry for the Zambian government,” Mulenga told Bloomberg as Glencore valued the various operations at $ 704 million.

As a reminder, the decision to acquire a majority stake in Mopani Copper Mines came earlier this year, after tensions with Glencore. The company wanted to put its mines on a maintenance and upkeep regime, against the advice of the government, which currently holds only 10% interest through ZCCM-IH, the rest belonging to First Quantum Minerals.

Source: Agence Ecofin
Investee Companies, Investee Company News

Zambia Sees Deal With Glencore Over Mopani Within a Month

(Bloomberg) — Zambia expects to conclude talks over buying Glencore Plc’s stake in Mopani Copper Mines Plc within a month, according to Barnaby Mulenga, permanent secretary in the Ministry of Mines.

Mulenga declined to disclose the size of the stake that state-owned ZCCM Investments Holdings is trying to acquire. ZCCM-IH currently has 10% of Mopani, with Glencore holding 73.1% and Vancouver-based First Quantum Minerals Ltd. 16.9%.

Zambia wants to raise its holding after clashing with Glencore earlier this year over the company’s plan to mothball Mopani’s operations. But it’s unclear how the cash-strapped government, which last week defaulted on a Eurobond interest payment, would finance a deal. While impairments of $1.14 billion at Mopani contributed to Glencore posting a first-half loss, the Switzerland-based commodity giant still assigned a value of $704 million to the operations.

Mulenga expects a deal to be announced in the coming weeks by Mines Minister Richard Musukwa, who said in September that both companies were prepared to sell their entire holding in Mopani. Zambia won’t have trouble raising finance for the deal, according to Mulenga, even though no money will come from the Treasury.

Zambia Says Glencore, First Quantum Willing to Sell Mopani

“The resource attracts money, so the issue of financing is the least of the worries for the Zambian government,” Mulenga said in an interview on Thursday, referring to Mopani’s copper-mining operations. He didn’t give further details.

A spokesman for Glencore declined to comment. First Quantum spokesman John Gladston also declined to comment.

Mining Disputes

Glencore shelved its plans to place the operations under care and maintenance for 90 days, after Zambia threatened to revoke its mining license in April. The government strategy is driven by a need to safeguard jobs at Mopani, rather than any desire to raise its shareholding, said Mulenga.

Zambia’s increasingly tense relations with investors in the key copper-mining industry may partly reflect maneuvering by President Edgar Lungu ahead of next year’s elections. The government is also in arbitration over mining assets it seized last year from billionaire Anil Agarwal’s Vedanta Resources Ltd.

Other copper miners have halted $2 billion of planned investments because of a dispute over a royalty tax. A mining conference later this year will seek to address that issue, Mulenga said.

Zambia, Africa’s No. 2 copper producer, relies on the metal for about 70% of its export earnings. The impact of the coronavirus pandemic is forecast to cut output this year to about 764,188 tons, far short of the nation’s target of 1 million tons, according to Zambia Chamber of Mines.

“Hopefully we will come to some consensus to what should this tax regime look like,” Mulenga said.

(Updates with copper output in penultimate paragraph)

©2020 Bloomberg L.P.

Source: Swissinfo.ch
Investee Companies, Investee Company News

KCM dispute to go to arbitration

Zambia’s Court of Appeal has ruled that Vedanta can proceed to arbitration with state mining firm ZCCM, in a dispute over the Indian mining major’s copper assets in the central south African nation.

Vedanta’s 79.4% owned Konkola Copper Mines (KCM) in Zambia were seized and ordered to be liqudated in May 2019 over alleged mismanagement.
The assets at the heart of dispute are KCM’s Nchanga copper smelter, the largest in Zambia, and the Konkola and Nchanga mines.

The Indian mining giant has invested more than $3 billion in the asset since acquiring it from Anglo American in 2004, according to Vedanta’s website. The remaining stake is held by ZCCM.
KCM’s provisional liquidator, Zambian lawyer Milingo Lungo, said the latest court ruling, in Ndola on November 20, will let the parties proceed to arbitration to settle the dispute.
During the arbitration process, Lungo will remain in control of KCM operations as mandated by the Zambian High Court in May 2019.

In November 2019, Lungo told Fastmarkets that the best option was to increase the value of the disputed KCM assets and ready them for a new owner.
But the latest ruling comes at a time when Covid-19 uncertanties are making it more difficult for major miners and smelters around the world to attract investors to buy assets or to help with developmental and operational costs.

The Zambian government previously approached different parties, including China Non-Ferrous Metal Mining Group (CNMC) over sale of KCM’s operations. However, legal risks, existing debts and operational issues have made KCM sale difficult.

When the Zambian government originally filed the liquidation order in May 2019, it sent shockwaves through the Zambian copper industry.

Liquidator Lungu said Vedanta’s deferral of a service fee payment to contractors and staff had led to output disruptions and that had prompted the government to step in at Nchanga and Konkola.
Since the liquidation order, Vedanta has been actively defending its rights under international law to proceed into arbitration with the Zambian state mining firm.

Zambia is the second-largest copper producing country in Africa and its copper exports are a major source of foreign income. One of its biggest export category is intermediate copper products – blister copper and anodes.

Fastmarkets’ spot refining charge (RC) for 98-99% blister copper on a cif China basis, stood ta $150-160 per tonne at the end of last month.
Julian Luk

Source: Zambia Watchdog