ZCCM Investments Holdings Plc. has received financing from own sources toward the CAPEX for the 2018/2019 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 and Renovations to Zambia Gold Company Limited Offices at ZCCM-IH Office Park in Lusaka; Contract No.: ZCCM-IH/076/2020.
ZCCM Investments Holdings Plc now invites sealed bids from eligible and qualified bidders for the Construction Works in Kasenseli, Mwinilunga District and Renovations to Zambia Copper Company Limited Offices at ZCCM-IH Office Park in Lusaka: Lot 1 – Construction of Gravel Road to Kasenseli Mine in Mwinilunga District (Duration – 12 weeks); Lot 2 – Renovations to Zambia Gold Company Limited Offices at ZCCM-IH Office Park (Duration – 12 weeks); and Lot 3 – Construction of a Processing Plant at Kasenseli Mine in Mwinilunga District (Duration – 12 weeks).
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:
3.1 Citizen-influenced company – 4%
3.2 Citizen-empowered company – 8%
3.3 Citizen-owned company – 12%
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.
Qualifications requirements include:
Experience as a prime contractor in the rehabilitation of 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 – ZMW5, 885,660; Lot 2 – ZMW1, 332,974; and Lot 3 – ZMW916, 355
iii) Average Annual Turnover for the past three (03) years as follows: Lot 1 – ZMW76, 513,582; Lot 2 – ZMW17, 328,669; and Lot 3 – ZMW11, 912,610
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). The method of payment will be either by Cash or Bank Certified Cheque.
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
Bids must be delivered to the address below at or before 10:00 hours on Tuesday, 29th September 2020. 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 29th August 2020. 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 Gravel Road to Kasenseli Mine in Mwinilunga District on Tuesday, 15th September 2020 at 14:00 hours. Bidders to meet at the District Commissioner’s Office in Mwinilunga at 13:00 hours. Lot 2 – Renovations to Zambia Gold Company Limited Offices at ZCCM-IH Office Park on Friday, 18th September 2020 at 09:00 hours. Bidders to meet at ZCCM-IH Office Park in Lusaka at 09:00 hours; and Lot 3 – Construction of a Processing Plant at Kasenseli Mine in Mwinilunga District on Tuesday, 15th September 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 in clause 8 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
Glencore will likely sell its entire 73.1% stake in Zambia’s Mopani Copper Mines to the government’s mining investment arm ZCCM-IH rather than becoming a minority stakeholder, two sources with direct knowledge told Reuters.
Zambia and Swiss-based Glencore are at “cross purposes” over Mopani, Zambian Mines Minister Richard Musukwa had said on Tuesday when he announced ZCCM-IH aims to increase its shareholding in Mopani to 51% “or even more”, from 10% currently.
Glencore’s plans to put Mopani on care and maintenance prompted the Zambian government to threaten in April to revoke the firm’s mining licences.
Two sources with direct knowledge of the negotiations said Glencore is looking to exit the asset entirely.
“As of now, we are discussing a potential sale of their stake in Mopani,” said one of the sources.
A Glencore spokesman declined to comment. First Quantum , which owns 16.9% of Mopani, did not respond to a request for comment.
The move by ZCCM-IH to take control of Mopani is part of its strategy shift away from minority stakes and towards running mines as an operator.
Glencore wrote off the value of Mopani by $1.144 billion in its half-year earnings report earlier this month, saying the estimated recoverable value was $704 million, including tax receivables.
Mopani’s total liabilities exceeded its total assets by $2.562 billion in 2019, the company reported in a financial statement, indicating “a material uncertainty in relation to the going concern assumption”.
Mopani produced 51,275 tonnes of finished copper in 2019 including purchased materials – accounting for 13.9% of Glencore’s African copper output and 3.7% of its overall copper output.
Glencore, which reported a first-half loss due to the impact of the pandemic, will not reap the benefits of billions spent on expansion projects over the last three years if it sells to ZCCM-IH but investors see this as a way for the miner to cut its losses.
“Mopani has been a big headache for Glencore, the mine has never delivered anything for shareholders,” a Glencore shareholder, who asked not to be identified, said, citing numerous accidents and operational issues.
Glencore will likely sell its entire 73.1% stake in Zambia’s Mopani Copper Mines to the government’s mining investment arm ZCCM-IH rather than becoming a minority stakeholder, two sources with direct knowledge said.
Zambia and Swiss-based Glencore are at “cross purposes” over Mopani, Zambian Mines Minister Richard Musukwa had said on Tuesday when he announced ZCCM-IH aims to increase its shareholding in Mopani to 51% “or even more”, from 10% currently.
Glencore’s plans to put Mopani on care and maintenance prompted the Zambian government to threaten in April to revoke the firm’s mining licences.
Two sources with direct knowledge of the negotiations said Glencore is looking to exit the asset entirely.
“As of now, we are discussing a potential sale of their stake in Mopani,” said one of the sources.
A Glencore spokesman declined to comment. First Quantum, which owns 16.9% of Mopani, did not respond to a request for comment.
The move by ZCCM-IH to take control of Mopani is part of its strategy shift away from minority stakes and towards running mines as an operator.
Glencore wrote off the value of Mopani by $1.144 billion in its half-year earnings report earlier this month, saying the estimated recoverable value was $704 million, including tax receivables.
Mopani’s total liabilities exceeded its total assets by $2.562 billion in 2019, the company reported in a financial statement, indicating “a material uncertainty in relation to the going concern assumption”.
Mopani produced 51,275 tonnes of finished copper in 2019 including purchased materials – accounting for 13.9% of Glencore’s African copper output and 3.7% of its overall copper output.
Glencore, which reported a first-half loss due to the impact of the pandemic, will not reap the benefits of billions spent on expansion projects over the last three years if it sells to ZCCM-IH but investors see this as a way for the miner to cut its losses.
“Mopani has been a big headache for Glencore, the mine has never delivered anything for shareholders,” a Glencore shareholder, who asked not to be identified, said, citing numerous accidents and operational issues.
Cash Constraints
A major hurdle to clinching the deal is Zambia’s lack of funds to pay for the stake and fund the mine’s running costs, sources say.
Glencore’s stake in Mopani is worth $514.6 million, according to its own valuation. Mopani’s 2019 financial statement shows operating expenses of $931 million.
Zambia’s total foreign exchange reserves stood at $1.43 billion at the end of June, equivalent to just 2.3 months of import cover, according to the central bank.
ZCCM-IH’s cash and term deposits together amounted to 828.9 million Zambian kwacha ($43 million) by March 31 2019, according to the latest financial statements on its website.
A ZCCM-IH spokeswoman did not reply to Reuters’ questions about how it would finance the stake purchase.
“The state’s cash constraints point to an amicable solution,” said Eric Humphery-Smith, Africa analyst at global risk advisory firm Verisk Maplecroft.
“The government may have threatened expropriation in the past, but the need for copper revenues likely precludes that option.”
NKOMBO KACHEMBA Kitwe
ZAMBIA CONSOLIDATED Copper Mines-Investment Holding (ZCCM-IH) has started the process of increasing its shareholding in the US$4 billion Mopani Copper Mines (MCM) with a view to having a controlling stake in the giant mining firm.
Mines and Minerals Development Minister Richard Musukwa has disclosed that ZCCM-IH has expressed interest to increase its shareholding in Mopani Copper Mine.
Speaking at a media briefing in Kitwe, Mr Musukwa said ZCCM-IH seeks to increase its shareholding stake from 10% to a controlling position.
He said a team of experts has been constituted to liase with ZCCM-IH and then engage Glencore on the interest expressed by the minority shareholders.
The interest follows Mopani Copper Mine’s earlier application to place the mine on care and maintenance in view of the COVID-19 outbreak.
He said the negotiations to increase its shareholding in the mining firm will not disturb ongoing operations.
Mr Musukwa said a controlling stake in Mopani Copper Mine will allow a new approach to mining and guarantee safety of jobs for Zambians.
He said mine unions are being engaged to ensure the safety of jobs, further assuring stakeholders that operations at the mining will continue normally.
By Paul Shalala- ZCCM Investment Holdings has expressed interest in acquiring more shares in Mopani Copper Mines.
Mines Minister Richard Musukwa says ZCCM-IH, which holds minority shares at 10 percent, seeks to buy shares from Glencore with a view to holding a controlling stake in Mopani.
Speaking during a media briefing in Kitwe today, Mr. Musukwa said government has constituted a team to liaise with ZCCM-IH to negotiate with Glencore.
The Mines Minister said a controlling stake in Mopani will allow a new approach to mining and guarantee the welfare of many Zambians employed by the mining firm.
He has disclosed that government is working with the mine unions to ensure the welfare of the employees is safeguarded.
Mr. Musukwa also assured all stakeholders that during the negotiations, operations at Mopani will not be disturbed.
In May this year, Mopani Copper Mines notified government that it wanted to place its mines in Kitwe and Mufulira on care and maintenance.
Zambia Gold Company is a Zambian newly established company that will oversee the mining, processing, refining and marketing of gold in Zambia. The company is owned by ZCCM- IH (51%) and the Zambian Government (49%) through the Ministry of Finance.
In order to achieve our vision and mission, the Company invites applications from suitably qualified and experienced individuals who are innovative, energetic and performance driven to fill the following positions at Alluvial Gold Project at Kasenseli in Mwinilunga and Gold Trading Centres in Eastern and Lusaka Provinces:
MINES AND MINERALS Development Minister Hon Richard Musukwa has announced that government through the Zambia Consolidated Copper Mine Investment Holding (ZCCM-IH) is working round the clock in ensuring that Kansenseli Gold Mine in Mwinilunga district of North Western Province becomes operational.
Hon Musukwa told journalists in Solwezi earlier today that government will not entertain any illegal mining activities in the area.
He said for a long time, a few individuals have been benefiting from the mineral resource at the expense of the people and country at large.
“And as I speak, ZCCM-IH has already started mining gold from the area,” he said.
He stated that government wants to ensure that Gold as a natural resource contributes to the economic trajectory of the country.
Over the Kalengwa Mine in Mufumbwe, Hon Musukwa disclosed that a mining licence will soon be issued to a suitable mining investor.
He revealed that various firms applied for mining licences and that the selection process has been completed.
Lubambe Copper Mines has completed the US $750 million extension project.
This will see the mine’s production increased to 235 metric tonnes of copper and cobalt ore per year thereby extending mine’s life span to 30 years.
Lubambe Copper Mines Chief Executive Officer Nick Bowen said the expanded mine contains an estimated 8.5 million tonnes of copper making it world class.
Mr Bowen said the grade at the extended mine is good compared to other mines.
He said the average grade at the extended mine is about 3.65% of Copper with 0.05% presence of cobalt thereby giving the mine further opportunity for growth.
Mr Bowen said the 4% of copper grade is good for business because most mines operate under 1%.
He was speaking when Mines Minister Richard Musukwa had visited the mines.
Mr Bowen said the new ore body is located about 6km South of the existing mine, at the depths of over 1000m and is contained on Lubambe’s existing 228 sq kilometer Mining License.
He said Lubambe has completed an advanced concept study which outlines the development of a new mine.
Mr Bowen said the extension Project will involve sinking of new shafts and conveyor declines, developing a new underground mine with initial production of 90,000 tonne of copper (in concentrate) and then expanding to 160,000 tonnes (in concentrate).
He said the new mine has an initial mine life of 30 years with further exploration expected to provide many more years of life Lubambe.
“Our extension project is currently the highest grade, largest undeveloped copper resource in the world. Today we have had a very productive discussions with Government about how we will work together to bring this billion dollar project to realization. There is another two years of detailed studies, design and approval processes to get us ready for construction.
“The current plans are to commence construction in 2023 and bring the new mine into production in 2028. The benefits of this extension project will extend the life of Lubambe past 2050, multi-billion dollar capital investment, creation of approximately 3500 jobs for Zambians from construction phase to production, opportunities for Zambians and Local suppliers. At project execution, approach will be to source as much equipment and materials as possible from Zambia,” he said.
He said Lubambe’s CSR Programmes under the extension Project will continue to focus on four key areas of agriculture, infrastructure, education and Health.
The CEO said the project will contribute to the country’s economic growth through payment of mineral royalties and corporate tax.
While the next steps are to progress the pre-feasibility of the new Lubambe extension project and obtain necessary technical and environmental approvals from Government and other key stakeholders.
Mr Bowen said this is an opportunity to work together to ensure this world class mine can be approved and constructed in the shortest time possible.
And Mr Musukwa told Lubambe and its board including ZCCM-HI to start expediting the process of approval to ensure that the building the mine of this magnitude commences.
Mr Musukwa said that a huge revenue will be added to tax portfolio that is why government through Zambia Revenue Authority and the Ministry of Finance would ensure that the mine is given approvals and necessary undertakings.
He pledged Government’s support to see that Lubambe operations and other mining operations across the country continue beyond the circumstances with corona virus.
Mr Musukwa said that mining remain Zambia’s comparative advantage and it must ensure that under any circumstances it must survive.
He urged the mine management to ensure that under this new normal they put up all the health regulations and measures to ensure that operations go on.
The Minister commended management at Lubambe for ensuring that the operation continue under this circumstances.
Mr Musukwa urged Lubambe management to continue building the team to ensure that that production is increased.
The mine has also put up three mine rescuer teams who gave a demonstration to the ministers delegation.
