On 28 October 2016, ZCCM-IH commenced Legal Proceedings in the High Court of Zambia against First Quantum Minerals Limited, FQM Finance Limited, Philip K.R. Pascall, Arthur Mathias Pascall, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited. The Defendants applied to set aside the Writ of Summons and Statement of Claim for irregularity (“the Defendants’ Applications”).

Further to the Cautionary Renewal released by ZCCM-IH on 14th November 2017 and in compliance with the requirements of the Securities Act No 41 of 2016 and the General Obligations of Disclosure under the Continuing Obligations of the Listings Requirements of the Lusaka Securities Exchange , shareholders are informed that on 25th January 2018, the High Court dismissed the Defendant’s Applications . Shareholders will be updated of any further developments regarding the proceedings.

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 6 February 2018

Lusaka Securities Exchange Sponsoring Broker
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First Issued on 1 November 2016

CNMC Luanshya Copper Mine Deputy Chief Executive Officer, Wang Jingjun said the firm was looking forward to reopen Baluba mine this year after the increase in copper prices on the international market.

Mr. Wang has stated that the reopening of Baluba mine will be enhanced by concerted efforts with the government and the community of Luanshya town.

He has appealed to members of the public to take time to understand and appreciate the challenges the mining company was facing such us increment in the price of sulphuric acid, electricity tariffs by Copperbelt Energy Corporation and paying back of the loan especially now that the operations of Baluba mine were about to resume.

And Luanshya Mayor Nathan Chanda is happy with china nonferrous Mining Corporation, Luanshya copper mine’s plans to reopen Baluba mine in 2018.

Speaking during a meeting with CNMC Luanshya Copper Mine Deputy Chief Executive Officer, Wang Jingjun held at the Mine’s Head Office in Luanshya on Thursday, Mr. Chanda has called on CNMC Luanshya copper mines to support local suppliers and contractors once Baluba opens.

Mr Chanda also urged the mine to employ as many local people as possible in the Baluba mine workforce and first consider all those who are on forced leave and those who may had left on voluntary separation scheme.

Source: Lusaka Times

Association President Augustine Mubanga says the move is progressive and will help boost the mining sectors contribution to the national treasury.

Mr. Mubanga told ZNBC News in Kitwe that the country will only derive maximum benefits from its mineral wealth if adequate measures are put in place to monitor the activities of investors.

He said local suppliers and contractors have been side-lined by some mine conglomerates in the awarding of contracts in preference to foreign entities.

During a media briefing, Copperbelt Province Minister Bowman Lusambo indicated that most mining companies have NOT been making significant investments in their areas of operations.

This follows reports that some named mining firms are abandoning their capital projects to illegally mine from the dump sites left by the defunct Zambia Consolidated Copper Mines-ZCCM.

Source: ZNBC

This follows reports of some named mines abandoning their projects to illegally mine from the dump sites left by Zambia consolidated Copper Mines -ZCCM.

Copperbelt Minister Bowman Lusambo says Government has observed that most mining companies have not made significant investments in their areas of operations.

Mr Lusambo says this is why some mining companies are clearing waste famously known as black mountain left by the defunct ZCCM instead of producing from their areas of investment.

He said the audit to be carried out jointly by the Ministry of Mines and Commerce will establish the levels of foreign direct investment into the sector on the Copperbelt.

Mr. Lusambo said this at a media briefing in Ndola.

Meanwhile, Mr Lusambo has urged mining companies to compel all foreign contractors to partner with Zambians in local business transactions.

Mr Lusambo said it is not right for mining companies to offer businesses to foreign contractors at the expense of local suppliers and contractors.

Source: ZNBC

Ms. Siame says Zambians have been left out in the mining of various minerals in the country and that time has come for the locals to benefit from their God given natural resources.

She was speaking when she presented cooperative certificates to three newly formed mining cooperatives in Rufunsa.

Ms. Siame said illegal mining has also robbed the country a lot of money in taxes.

She said government wants Zambians to benefit from their resources unlike the current situation where foreigners are getting everything.

And ministry of mines permanent secretary Paul Chanda said Zambians should take advantage of government’s new mining policies to register their firms for them to participate in the mining industry.

Mr. Chanda said government will empower the newly formed cooperatives with equipment and capital for them to be producing reflectively.

He said government though the ZCCM-IH will also provide market for the minerals so that miners would not labour to look for market.

And earlier registrar of cooperatives Justin Mwansa said the formation of cooperatives by small mining entities will improve capacity building and enhance productivity.

Mr. Mwansa called for more miners to come up with cooperatives so that dividends can remain in the country.

Source: ZNBC

Speaking when she presented cooperative certificates to three newly formed mining cooperatives in Rufunsa, Ms Siame said Zambians have been left out in the mining of various minerals in the country and that time has come for the locals to benefit from their God given natural resources.

Ms. Siame said illegal mining has also robbed the country a lot of money in taxes.

She says government wants Zambians to benefit from their resources unlike the current situation where foreigners are getting everything.

And ministry of mines permanent secretary Paul Chanda said Zambians should take advantage of government’s new mining policies to register their firms for them to participate in the mining industry.

Mr. Chanda said government will empower the newly formed cooperatives with equipment and capital for them to be producing effectively.

He said government though the ZCCM-IH will also provide market for the minerals so that miners would not labour to look for market.

Earlier registrar of cooperatives Justin Mwansa said the formation of cooperatives by small mining entities will improve capacity and enhance productivity.

Mr. Mwansa called for more miners to come up with cooperatives so that dividends can remain in the country.

Source: ZNBC

In compliance with the requirements of the “Securities Act, Cap 354 of the Laws of Zambia” and the Listing Rules of the Lusaka Securities Exchange, ZCCM Investments Holdings Plc (ZCCM-IH) announces the unaudited results for the six months’ period ended 30th September 2017.

Financial Performance

The Group recorded a turnover of K37.7 million for the six-month period ended 30th September 2017 which was 42% below the turnover of K65.5 million reported during the six months to 30th September 2016. The lower Group turnover was mainly as a result of a decrease in turnover for Ndola Lime Company Limited by 41% from K62.5 million to K36.7 million for the period under review. The Group recorded an operating loss of K123 million (Sept 2016: loss K65.1 million) No Dividends were earned for the period ended 30th September 2017 (September 2016: Nil)…

Operations and Strategic developments

(I) Proposed Joint Venture for setting up of a Cement Manufacturing Company
As part of ZCCM-IH’s strategy to diversify its portfolio, the Company is progressing towards finalizing a Joint Venture partnership which will culminate into setting up of a Cement Manufacturing Company.

ZCCM-IH intends to hold 35% of the shares while its Chinese Partner will have 65%. The planned production capacity of the Plant will be 5000 tonnes per day of Clinker with a 50 MW Thermal Power Plant. Furthermore, the proposed plant will be installed with a waste heat recovery system which will add another 7.5 MW of power. It is expected that the Plant will take 3 years to construct and employ over 1000 people during construction. Once completed, the plant is expected to employ about 400 people.

Commencement of construction is conditional upon financial closure.

(II) Disposal of ARM & Vale’s indirect interest in Lubambe Copper Mine Ltd (Lubambe)
African Rainbow Minerals (ARM) and Vale International SA (Vale) concluded an agreement to dispose ARM and Vale’s combined 80% beneficial interest in Lubambe to EMR Capital
Limited (EMR). The 80% beneficial interest in Lubambe, which is held in equal shares by ARM and Vale included the equity holding in Lubambe as well as loans to Lubambe. Lubambe is owned 40% by ARM and 40% by VALE, both as beneficial owners and 20% by ZCCM-IH…

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 10 January 2018

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First Issued on 10 January 2018

Download the original SENS Announcement

ZCCM-IH Interims to 30 September 2017.pdf

ZCCM-IH chief executive officer Pius Kasolo said in an interview on Monday that KCM has been making monthly payments to the company.

In 2016, the English High Court granted default judgment in favour of ZCCM-IH in its claim against KCM, brought pursuant to a settlement agreement entered by the parties in 2013, for a sum of US$103 million.

The claim relates to outstanding payments under a 2013 copper price participation settlement agreement between ZCCM-IH and KCM.

Source: Zambia Daily Mail Limited

The movement in earnings is mostly due to the continued improvement in performance for most major mining companies in ZCCM-IH’s portfolio. This improved performance is
attributable to stability in energy supply and the increase in copper prices on the international market (London Metal Exchange) by 33% over the 12 months from 30 September 2016 to 30 September 2017.

Shareholders are advised that the information contained in this trading statement has not been reviewed or reported on by the external auditors of the Company.

The Company expects its results for the six months period ended 30 September 2017 to be released via the LuSE SENS and published in the local press on or about 11 January
2018. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.

By Order of the Board

C Chabala
Company Secretary

Issued in Lusaka, Zambia on 9 January 2018

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First Issued on 9 January 2018

Download the original SENS Announcement

• ZCCM-IH Trading Statement

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Showcase the aggressive condition amid the topmost manufacturers, with sales, revenue and market share of Cobalt market. To display the global market by regions, with sales, revenue and market share of Cobalt industry, for each region. Analyze the key regions, with sales, revenue and market share by key countries in these regions. Describe Document Readers Industry sales channel, distributors, traders, dealers, appendix and data source.

In addition, considering that the global economy is altering depending upon several factors, it is vital to take a note that our report entails data that are not only carried out regarding CAGR forecasts but it also analyzes the key parameters such as yearly market growth in order to have complete information about the future of the market worldwide. It also helps in identifying the wide opportunities that will open up for the market. The other key feature included in this report is the analysis of the revenue forecasts of all the important regions and applications, which is in terms of dollars.

Source: SATPRNEWS

COMMENTARY

• The Group’s performance improved during the year owing to increase in copper production for most major mining companies. This was due to stability in energy supply and an improvement in copper prices on the world market. The copper price increased by 23% from US$4,848/ton in March 2016 to US$5,956/ton in March 2017.
• The Group recorded an operating profit of K1, 703 million (2016 Loss: K858 million), mainly attributable to the recovery of K1, 923 million impairment from investee companies whose performance improved during the year.
• The Group’s share of losses of equity accounted investees significantly reduced by 91% from K2, 210 million in 2016 to K194 million in 2017.
• Profit after tax was K1,764 million (2016: Loss K2,912 million).
• Total assets marginally increased by 8% from K9, 797 million to K10, 575 million largely on account of the recovery of the copper price participation receivable that was impaired in the preceding year.
• The Ndola Lime Company Limited recapitalization project is still undergoing a hot commissioning, though the process has been met with a lot of challenges.
• In February 2016, ZCCM-IH undertook to subscribe for all shares not subscribed for by other Investrust Bank Plc (Investrust) shareholders in the Investrust Rights Offer. This resulted in an increase in ZCCM-IH’s shareholding in Investrust from 10.6% to 48.6%. As a result, ZCCM-IH was required to proceed with a Mandatory Offer to all the other shareholders in Investrust in accordance with Rule 56 of the Third Schedule of the Securities (Takeovers and Mergers) Rules, Statutory Instrument No 170 of 1993, issued pursuant to the Securities Act, Chapter 354 of the Laws of Zambia.

  The process is expected to be concluded by end of March 2018.

• Subsequent to the period under review, ZCCM-IH’s subsidiary Mawe Exploration and Technical Services Limited which was scheduled for dissolution in prior year was formally in dissolved in April 2017.

OUTLOOK
Copper prices are expected to increase steadily premised on increased demand from high copper consumer countries. ZCCM-IH’s performance is expected to improve as a result of the improvement in copper prices which drive the performance of the mining portfolio. Furthermore, as a result of good rains experienced during the 2016/17 season, the generation capacity of hydroelectricity is expected to improve thereby stabilising energy supply.

The recovery in copper prices as well as stability in energy supply will contribute to the growth in copper production which in turn will lead to growth in copper exports. The expected growth is further confirmed by additional investments of over $ 2 billion over the next several years announced by major multinational investors in the mining sector of Zambia.

In response to the positive outlook, ZCCM-IH will implement a new Strategic Plan hinged on expansion of its investment footprint in various sectors of the economy including mining with a focus on industrialisation, energy, agriculture, manufacturing, real estate and financial services.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 2 January 2018

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First Issued on 2 January 2018

Download the original SENS Announcement

ZCCM-IH Provisional Abridged to 31 March 2017

The x-ray facilities are expected to speed up radiological diagnostic services for the Konkola Copper Mines medical services which currently serve a catchment population of over 63 000 in four towns, namely: Chililabombwe, Chingola, Kitwe and Nampundwe.

Chingola District Commissioner Mary Chibesa, who commissioned the facilities, said that the facilities would not only benefit mine employees and commended Konkola Copper Mines for their longstanding partnership with the government to delivering quality healthcare.

“My government appreciates the long standing relationship with Konkola Copper Mines and it is our desire to sustain this mutual cooperation aimed at improving the quality of life of the Zambian people,” she said.

Acting Konkola Copper Mines CEO, Enock Mponda, reiterated the company’s commitment to the health and safety of its employees as top priority and stated that the company would continue to ensure that the health and safety of its workforce remained paramount as it embarks on its rigorous growth plan.

“The health and safety of our people is the number one priority for management. By firstly providing our employees with the best possible health care and ensuring that everyone is healthy and well, only then can we can focus on growing production and taking Konkola Copper Mines to even greater heights,” he said.

Konkola Copper Mines manager for medical services Edward Chilekwa hailed the new facilities as a big step in raising the standards of radiological diagnostic services and overall patient care at the Konkola Copper Mines medical facilities.

“The x-ray machine is something we have been looking forward to and it couldn’t have come at a better time than this as it will help us improve diagnostic quality. I am positive that this upgrade will enable our staff to serve patients in much more efficient manner,” said Dr. Chilekwa.

Source: Mining Review

What happened in 2017

The run started on hopes (since dashed) of massive infrastructure investment in the US following the presidential election, but strikes in Q1, which at one point saw nearly a tenth of global production go offline, really set the tone for the year.

By mid-year the rally was flagging, but talk of a Chinese ban on scrap imports saw the price take off again. The year-end surge may have been mostly due to dollar weakness but the buoyant mood evident throughout the year (not least among speculators on futures markets) was underpinned by prospects of a demand spike in coming years on the back of an electric vehicle boom.

How things could change in 2018 (and beyond)

2017 is likely to have been the first year in 12 to see a decline in global mine production, but growth should return this year as world number two producer Peru adds some 300,000 in new production, mines like Norilsk’s Bystrinsky mine in Russia ramp up output, Glencore restarts its Zambian operations and greenfield commissioning such as First Quantum’s Cobre Panama mine begins to factor into supply projections.
“The markets where technology hasn’t substantially shortened the supply cycle, and where cost are rising, (i.e. copper) have the greatest long-term upside in prices”
But as happened last year labour action is likely to crimp any projected output growth. Wage negotiations could trigger disruptions at mines producing about 40% of global supply according to Barclays. INTL FCStone is penciling in a 1.26m tonne or 6% disruption allowance and most analysts see widening – if smallish – deficits.

The upside:

• Factories around the world are buzzing – the JP Morgan composite PMI index is at its highest since February 2011 – and concerted global economic growth could hit 4% this year
• Warehouse and exchange inventories are under control – Comex is up sharply, but Shanghai is down despite winter refinery shutdowns and at 200,000 tonnes, LME is nowhere near peaks seen during copper’s bear years
• China’s pollution clampdown and shake-up of state-owned industry open up gaps for producers elsewhere – refined imports have held up surprisingly well and concentrate shipments are at record highs hitting 1.8m tonnes in November
• The switch to electric vehicles, the build out of EV infrastructure (Beijing’s promised 4.8m charge points by 2020) and green energy investment lives up to the hype
• Long-standing industry issues are not going away: Declining grades, rising costs, dirty concentrates, water and other environmental concerns, stricter regulations, community opposition, agonizingly slow project permitting processes and exploration activity still in the doldrums

On the downside:

• Cooler heads prevail and Chile’s biggest ever year of copper mine wage negotiations concludes without major disruptions
• The Chinese construction market correction turns into full-blown slump, transport slows and the scrapping of subsidies puts the brakes on EV sales – the biggest sources of demand for the metal in a country that consumes nearly half the global total
• Higher prices encourage Chinese miners to ramp up output, domestic secondary supply rises and the purported ban on scrap imports never materialize
• Copper from large scale expansions – Oyu Tolgoi and Grasberg going underground spring to mind – and greenfield projects like Udokan, Wafi-Golpu and Quellaveco – reach the market before new wave of demand from EVs does.

Key event to watch in 2018

Mid-year wage negotiations at Escondida – the globe’s only 1m tonne copper mine – crippled by a 44-day strike last year.

All bets are off if…

The promised $500 billion infrastructure investment program in the US gets off the ground, especially if the money goes into the electricity grid (not gonna happen)

Quote for the year

“The markets where technology hasn’t substantially shortened the supply cycle, and where cost are rising, (i.e. copper) have the greatest long-term upside in prices. The lack of investment over the past few years implies that copper mine production is likely to decelerate notably after 2019, given its long-cycle nature” – Goldman Sachs

MINING.com’s call

Above $3.50 ($7,800 a tonne) by the end of 2018 and a rising trend into 2019. And that may be conservative.

Source: Mining

This is was as a result of unpaid sums due to ZCCM IH pursuant to a settlement agreement entered by the parties in 2013.

This brings the total amount awarded to ZCCM IH to 139 million US dollars in claims against Konkola Copper Mines.

The court has also given directives for the inquiry to determine whether KCM had breached the settlement agreement by making payments to Vendetta group of companies whilst sums remained due and owing to ZCCM-IH.

ZCCM-IH Executive Director Pius Kasolo disclosed this at a media briefing in Lusaka on Tuesday.

Dr Kasolo said the parties have since agreed a repayment plan for the recovery of the additional sums which consists of 21 equal months instalments together with interest at three percent.

He said the final payment is expected on August 31st, 2019.

Dr Kasolo said partners should not take the move as a deliberate attack on them but a move that will make the investment holdings answerable to Zambians.

He however, said that ZCCM IH remains committed to ensuring that the KCM operations continue in Zambia.

Dr Kasolo said ZCCM IH will continue to provide the necessary support to ensure the value of the stake in the company.

Source: ZNBC

The movement in earnings is mostly due to improved performance for most major mining companies in ZCCM-IH’s portfolio. This improved performance is attributable to stability in energy supply and continuous upsurge of copper prices on the international market.

Shareholders are advised that the information contained in this trading statement has not been reviewed or reported on by the external auditors of the Company.

The Company expects its provisional results for the year ended 31 March 2017 to be released via the LuSE SENS and published in the local press on or about 3 January 2018. Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until publication of the results.

By Order of the Board

C Chabala
Company Secretary
Issued in Lusaka, Zambia on 29 December 2017

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First Issued on 29 December 2017

Download the original SENS Announcement

• ZCCM-IH Trading Statement

In the same Announcement, the market was further informed that the Court had given directions for an inquiry to determine whether KCM had breached the Settlement Agreement by making payments to Vedanta Group Companies whilst sums remained due and owing to ZCCM-IH, and whether ZCCM-IH would be entitled to recover additional sums from KCM as a result.

We now advise that ZCCM-IH has successfully brought an application for summary judgment against KCM for such additional sums. Granting the claim in full, the Court has awarded ZCCM-IH a further US$35,991,768, bringing the total amount awarded to approximately US$139 million. ZCCM-IH was also awarded its costs of bringing these proceedings.

The parties have agreed a repayment plan for the recovery of these additional sums, which consists of 21 equal monthly instalments of US$1,713,893.72, together with interest at 3 per cent. The final payment is expected on 31 August 2019.

By Order of the Board

C Chabala
Company Secretary
Issued in Lusaka, Zambia on 29 December 2017

Lusaka Securities Exchange Sponsoring Broker
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First Issued on 10 June 2016

Download the original SENS Announcement

• ZCCM-IH Market Update

EMR will partner with 20 per cent shareholder, ZCCM Investments Holdings, an investment company majority owned by Zambia government, a statement said on Thursday. It added that the acquisition, which was announced earlier in August, will substantially enhance EMR’s copper portfolio.

Lubambe, the mine in Zambia — the second largest copper producing nation in Africa — is an existing underground high-grade copper mine and extension area development project, with a total resource base of approximately 9.2 million tonnes of contained copper metal.

It currently produces close to 20 ktpa of copper in concentrate with EMR planning to optimize operations and ramp up annual production significantly over time.

EMR now has eight operations worldwide, including three copper mines that have potential to expand and other opportunities in the pipeline, EMR chief executive Jason Chang said.

Nick Bowen, a former Macmahon and Orica executive, has been appointed Lubambe CEO and will be based in Chingola, Zambia. His key focus will be the completion of the final feasibility study on the larger extension area orebody (resources greater than 212mt at 3.6% Cu) some 6 km to the southeast of the existing workings.

Taylor Collison acted as financial advisor for EMR while Allen & Overy acted as legal counsel and KPMG was EMR’s accounting and taxation advisor. The specialist mining private equity manager founded by Jason Chang and Owen Hegarty has linkages to Asian markets and has a focus on assets in copper, gold, potash and coking coal that it looks to acquire globally.

The mineral and natural resources investor closed its second private equity fund earlier, EMR Capital Resources Fund II, at $860 million (AU$1.12 billion) and also purchased Golden Grove, a copper zinc mine in Western Australia last year.

Source: Deal Street Asia

In 2016 Zambia enjoyed a strong jump in its attractiveness as a mining destination.

As noted, Zambia fared well on the most recent survey released by the Fraser Institute, being ranked 30th out of 104 mining jurisdictions. In Africa it was the fifth most attractive mining destination in Africa, behind Ivory Coast, Botswana, Ghana, and the Democratic Republic of Congo (DRC).

Zambia’s position as a mining investment of choice had been on a downward trend for some time over the past decade, with a sharp drop in 2015. However, in 2016, as the graph shows, Zambia (represented by the orange line) enjoyed a strong jump in its attractiveness as a mining destination.

According to the Fraser Institute, Zambia’s drop in 2015 was due to the increase in the Mineral Royalty Tax, and the lack of policy certainty around the implementation of the tax. Conversely, the reason for Zambia’s marked advance on the rankings in 2016 was because of improvements in labour regulations, as well as greater availability of labour and skills. The survey may also reflect investor sentiment regarding policy decisions made by governments in a previous year. For example, a drop in Zambia’s ranking in 2015 could reflect negative policy decisions made in 2014.

Source: Mining For Zambia

Zambia’s copper production is next year likely to increase further to reach 1 million tonnes, Yaluma said, citing improved power generation and higher prices.

“As we see it right now there is a good picture. We have sufficient power and the price has gone up. With the new trends, we have projected at least 800-850,000 tonne this year and next year will manage to hit a million,” Yaluma said.

Zambia in September estimated copper production to inch lower to 753,992 tonnes this year mainly due to lower output from Konkola Copper Mines, a subsidiary of London-listed Vedanta Resource.

Source: Lusaka Times

Accordingly, pending completion of the sale of the Government’s 17.3% B Class shareholding in ZCCM-IH, shareholders are advised to exercise caution when dealing in the Company’s securities.

By Order of the Board
Chabby Chabala
Company Secretary
Issued in Lusaka, Zambia on 24 November 2017

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First Issued on 24 November 2017

On 26 October 2016, ZCCM-IH filed a Notice of Arbitration in London against Kansanshi Holdings Limited and Kansanshi Mining PLC. Further, on 28 October 2016, ZCCM-IH commenced Legal Proceedings in Lusaka against First Quantum Minerals Limited, FQM Finance Limited, Philip K.R. Pascall, Arthur Mathias Pascall, Clive Newall, Martin R. Rowley and Kansanshi Mining PLC for various Claims arising from transactions between Kansanshi Mining Plc and FQM Finance Limited.

Further to the Cautionary Renewal released by ZCCM-IH on 26 May 2017, regarding these matters and in compliance with the requirements of the Securities Act No 41 of 2016 and the General Obligations of Disclosure under the Continuing Obligations of the Listings Requirements of the Lusaka Securities Exchange, shareholders are informed that the matters are yet to be determined. Shareholders will be updated as the cases progress.

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 Tuesday, 14^th November 2017

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First Issued on 1 November 2016

1. The Proposed Joint Venture for the setting up of a Cement Manufacturing Company
As part of ZCCM-IH’s strategy to diversify its portfolio, the Company is progressing towards the finalising a Joint Venture partnership which will culminate into the setting up of a Cement Manufacturing Company. Shareholders will be aware that His Excellency, the President of the Republic of Zambia, Mr. Edgar C. Lungu, graced the groundbreaking ceremony on 7 July 2017, for the Cement Project in Masaiti district located in the Copperbelt province of Zambia.

ZCCM-IH intends to hold 35% of the shares while its Chinese Partner will have 65%. The planned production capacity of the Plant will be 5000 tonnes per day of Clinker with a two (2) by twenty-five (25) MW Thermal Power Plant. It is expected that the Plant will take 3 years to construct and employ over 1000 people during construction. Once completed, the plant is expected to employ about 400 people.

Commencement of construction is conditional upon financial closure.

2. Disposal of ARM & Vale’s indirect interest in Lubambe Copper Mine Ltd (Lubambe)
ZCCM-IH Plc shareholders are advised that African Rainbow Minerals (ARM) and Vale International SA (Vale) have concluded an agreement to dispose ARM and Vale’s combined 80% beneficial interest in Lubambe to EMR Capital Limited (EMR). The 80% beneficial interest in Lubambe, which is held in equal shares by ARM and Vale, includes the equity holding in Lubambe as well as loans to Lubambe. Lubambe is owned 40% by ARM and 40% by VALE, both as beneficial owners and 20% by ZCCM-IH.

The purchase consideration for the Disposal is US$97.10 million and will be settled in cash. The final amount receivable is subject to, amongst others, the following adjustments which will be finalised on completion of the Disposal:

• Settlement of Lubambe general banking facility; and
• Additional funding provided to Lubambe by ARM and Vale between 1 May 2017 and the completion date.

Completion of the Disposal is subject to the fulfilment of agreed conditions precedent.
EMR is a specialist resources private equity management firm with a proven investment track record spanning over 20 years. It manages investments of more than US$2 billion.

RISK WARNING
Prospective investors are urged to exercise caution in dealing in securities that, by their nature, are volatile and subject to price fluctuation.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Monday, 16^th October 2017

Lusaka Securities Exchange Sponsoring Broker
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First Issued on Monday, 16^th October 2017

ZCCM-IH Chief Executive Officer Pius Kasolo said ZCCM-IH sold the houses to its former employees and so far 64 per cent of the units had been sold off with all the transactions concluded.

Speaking during the re-opening of the firm’s Kitwe office, which had closed, Mr Kasolo said the initial houses were 45,817 and 29,292 transactions had been completed with title deeds issued.

He said the delays had been due to legal disputes regarding certain houses, the death of former employees, and family disputes, following deceased purchasers.

“With the re-opening of this office, it is anticipated that the processing of tittles will be concluded expeditiously. ZCCM-IH is doing everything possible to resolve the transactions, as such we have come up with a programme that will see the remaining transactions concluded within three years,” he said.

Copperbelt Minister Bowman Lusambo was happy that ZCCM-IH had come up with a three-year programme to complete the transactions.

In a speech read for him by Kitwe District Commissioner Binwell Mpundu, Mr Lusambo said owning a house was an empowerment, hence the need for ZCCM-IH to expedite the process on the remaining transactions.

He said the Government was available to assist ZCCM-IH complete the process and called on former purchasers to work with the firm to complete the process.

“My ministry is anxious to see that all former employees receive their title deeds. The Government’s agenda, among others, is the economic empowerment of citizens. Certainly house ownership forms part of such empowerment,” he said.

Mineworkers Union of Zambia president Chishimba Nkole urged all former employees to visit the office and complete their transactions.

He said former employees had not made efforts to complete their transactions looking at the number of documents that were still in the hands of ZCCM-IH.

Source: Times

ZCCM-IH wishes to inform shareholders and the market that the Company is in the process of obtaining the requisite regulatory approvals in order to proceed with the Mandatory Offer. Thereafter, details of the Mandatory Offer including salient dates and terms will be communicated.

In the meantime, shareholders are advised to exercise caution when dealing in the Company’s securities.

By Order of the Board
Chabby Chabala
Company Secretary

Issued in Lusaka, Zambia on Friday, 22^nd September 2017

Lusaka Securities Exchange Sponsoring Broker
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First Issued on Monday, 29^th May 2017

EMR Capital Group Chief Executive Officer Jason Chang says the mining giant has invested 100 million U.S Dollars in taking over operations at the mine.

Mr. Jason says EMR Capital will invest a further 15 million Dollars in the next 6 to 12 months and continue to re-investing cash proceeds at the mine to expand the mine and double production.

He says EMR Capital will double copper production at Lubambe Copper Mine from its current 15,000 tonnes to about 40,000 tonnes per year.

Mr. Jason has told ZNBC News in Perth, Australia that EMR Capital will localize the company by retaining all the 1-thousand 500 plus jobs including management so that decisions of the company are made by the local management.

And Nick Bowen, the Chief Executive Officer at Lubambe Copper Mine said after looking at other African Countries, a decision was made to invest in Zambia because of its rich mineral resource and stable political environment.

Mr. Bowen said it is the first time that EMR Capital limited is investing in Africa and Zambia.

And Minister of Mines Christopher Yaluma said the take over at Lubambe copper mine is a relief to government.

He said government through ZCCM-IH endorsed the investment deal with EMR because of its enormous appetite of wanting to invest in the country’s mining sector.

Source: ZNBC

Bank managing director Simangolwa Shakalima said the bank moving into using digital platforms to try and serve its customers better and had in the last four years invested over K150 million in upgrading its platforms.
Mr Shakalima said the bank was now able to offer mobile banking services, internet banking and was the bank behind the Zamtel Kwacha programme.

He was speaking in an interview after he toured the Times Printpak Zambia Limited stand at the just-ended 91st Agriculture and Commercial Show held under the theme: “Promoting a Green Economy.”

“The concept of providing services 24/7 is incomplete without banking across various channels. We have invested over K150 million in the last four years to upgrade digital platforms to service customers better.

“We are now offering mobile banking, our internet banking system is one of the best, we are moving away from paper based transactions to more of electronic but also with those electronic transactions, we are bringing in convenience and accessibility,” Mr Shakalima said.

He said the bank had also embraced its reach by introducing what it was calling agency banking, which meant that it was no longer relying on its branches to offer banking services to its clients but the agents across the country for that purpose.

Mr Shakalima said currently the bank had close to 500 agents across the country and was in the next 18 months intending to get 1,500 more in places where the bank was not represented.

“So the agents will be offering basic services such as opening an account, depositing cash and withdrawing cash,” he said.

Investrust head of retail and business banking Geoffrey Ndama said the bank was committed to bringing improved accessibility to financing for small and medium enterprises through agents banking.

“We will come up with a product which is a card called ‘invest go’, the card is one of the money transmission elements that you can use.

“All you need to do is go to our branch to a machine and pay a K40 and buy a card, you can load cash on the card which is a visa-enabled card which you can use anywhere even abroad,” he said.

Source: TIMES

One of the crowning achievements of that era was the formation of the University of Zambia’s School of Mines in 1973, which has turned out more than 1 000 graduates in mining engineering, geology, and metallurgy and mineral processing. In addition, the nationalised mining industry under Zambia Consolidated Copper Mines (ZCCM) sent large numbers of Zambians to study at leading universities overseas – not just in mining, but in related fields too. They brought back valuable skills which helped to build a solid intellectual foundation.

“The mining skill level of Zambia improved so much that later, when the mines were re-privatised, the new owners did not need to employ many expatriates,” according to a paper, Copper Mining in Zambia – History and Future, published in the journal of the Southern African Institute of Mining and Metallurgy (June 2016).

A 2014 study by the International Council on Mining and Metals (ICMM) found that the proportion of mining expatriates in Zambia is less than 2% of the industry workforce, compared to 8% in Peru and 17% in Tanzania.

Dr. Osbert Sikazwe, Dean of the School of Mines at the University of Zambia in Lusaka, says academic standards at the institution are high. “Our lecturers have studied at overseas universities. Our graduates hold their own, both in the mining industry and when they pursue post-graduate studies at international universities.”

Graduates of the School of Mines can be found in high-level careers, both in mining and academia, in countries as diverse as Finland, South Africa and Australia. Those prominent in Zambia include Dr. Pius Kasolo, CEO of government’s investment-holding company ZCCM-IH; Emmanuel Mutati, one-time CEO of Mopani Copper Mines; and Keith Kapui, Vice-President at Konkola Copper Mines (KCM).

The skills bequeathed to Zambia by the nationalised mining industry were a good beginning, but there was still much to do because the industry had been starved of investment and innovation for so long. Mining had moved on. The level of technology now coming on stream worldwide – and the higher level of skills needed to operate it – was at a whole different level.

So from 1997 onwards, the new investors in Zambia’s rundown mines poured billions of dollars into expansion, upgrading the technological base and starting new greenfield projects. As a natural consequence, they upgraded the skill base of the industry too. This was done very strategically, and has formed part of an ongoing process which continues to this day.

For example, Barrick Lumwana spends more than $100 000 a year on some 400 school and tertiary scholarships. Since 2007, KCM has offered around 500 scholarships, at school and university level, and has sent many students to top universities in Australia, India, Namibia and South Africa. Since 2005, First Quantum Minerals (FQM) has spent more than $50 million on a broad basket of initiatives which include scholarships, apprenticeships, and the construction and funding of trade schools.

“The focus on skills is a response to the growing sophistication of mining”
And in a bold initiative to train miners at the highest level, Mopani recently opened a $20-million technical training centre in Mufulira. It features world-class technology, including simulators, and will eventually receive students not just from other Zambian mines, but from other countries too. “You can’t just teach miners to pass exams,” says Lourens de Klerk, who heads the centre. “You also need practical, hands-on training where people learn to identify faults and handle unexpected situations. It is this which makes our school unique, even by international standards.”

The Zambian mining industry’s focus on skills is primarily a response to the rapidly advancing technological sophistication of the global industry. Like their international competitors, Zambia’s mines operate some of the world’s most sophisticated – and expensive – machinery and equipment. At FQM’s Sentinel Mine, for example, drivers learn to operate multimillion-dollar, 300-tonne haul trucks in state-of-the-art simulators which are able to mimic all kinds of weather, scenarios and driving conditions.

The growing technological sophistication of mining is one of the first things university graduates encounter. Dr. Sikazwe of the School of Mines explains: “While the intellectual base of our graduates is solid because of the quality of the teaching, they have to spend time on the job learning about the latest mining technology because they haven’t always been exposed to it. We would love to see more students accepted on internships before they graduate.”

Copperbelt University (CBU), in Kitwe, also has a School of Mines and Mineral Sciences, which was established in 2010. It offers not just degree courses, but also diploma programmes in areas such as mine ventilation, surveying and chemical technology.

Perhaps the biggest challenge facing local universities is that they depend on a cash-strapped Zambian government for funding. While this has less of an effect on the quality of teaching, it does affect the standard of laboratory equipment and technology – as well as the infrastructure, much of which is in need of refurbishment.

Outside help is always appreciated. The Dutch government recently funded a new boardroom at the School of Mines in Lusaka, as well as two scholarships at the University of the Witwatersrand in South Africa. Mines such as FQM, Mopani and KCM have financed library facilities, donated books, refurbished rundown infrastructure, sponsored student awards and accepted students on internships. Kagem Mining recently provided full scholarships to two geology undergraduate students, while Barrick Lumwana has been providing one scholarship a year to study mining engineering at Master’s level.

More than 40 years after the first wave of Zambia’s mining engineering students started graduating, the industry’s skill base has grown steadily. Today, it is one of the country’s competitive strengths. The challenges facing Zambia’s mining sector are well documented, but a lack of homegrown skills is not one of them.

Source:

ZCCM-IH owes its continued existence, to the mining industry, where, at the moment, virtually all of its investments are held. As an investment company, majority-owned by Government on behalf of the Zambian people, we believe that our corporate social responsibility (CSR) activities are expected to spurn the entire country.

ZCCM-IH embarked on the “Clean Water for Zambia” project in 2016, focused on sinking a number of boreholes as its core sustainable social corporate investment. The boreholes were earmarked for remote areas of the country with little or no access to clean and safe water. So far, ZCCM-IH sunk two boreholes in Sinda District in two separate communities with approximately eight thousand community members in total.

With access to clean and safe drinking water, water borne diseases subside and living standards improve, among others. Safe and clean water will also greatly improve the health of mothers, infants and children and consequently reduce the maternal neonatal mortality rate in Zambia. There is also a visible correlation between improvement of girls’ education and access to safe clean water as well as the empowerment of women.

Women and girls move long distances to fetch water and end up using a lot of hours in a day on this activity when they could otherwise be engaged in other social economic activities that would improve their livelihoods such as income generating ventures or education.

This project is aimed at contributing to targets under the Sustainable Development Goal (SDG) number six which aims at “Ensuring access to water and sanitation for all”. Statistics indicate that more than one third of Zambia’s population does not have access to clean water.

Completed in January 2017, the project which was financed by the Zambian Government from a World Bank loan, was awarded to Intergrity Enterprises Limited, of Kabwe, by the Ministry of Water Development, Sanitation and Environmental Protection.

Intergrity subsequently subcontracted METS in 2016 to construct and manage the project in five months with the official contract commencement date of 8th July 2016 and the defects liability period of 12 months.

The scope of works included among other things; site clearing, river diversion works, excavation works for the core trench, the construction of dam embankments, excavation and construction of spillways with their associated structures, irrigation intake structures and canals and laying the low flow pipe.

Due to unfavourable weather conditions the contract was extended for 45 days and the project was finally completed on 17th January 2017.

The construction of Chibalashi dam will significantly boost agriculture and fisheries activities in the area throughout the year.

About Misenge

Misenge Environmental and Technical Services Ltd (METS) is a former Environment Department of the ZCCM Investments Holdings Plc (ZCCM-IH). Following the privatization of ZCCM Ltd and the transformation of the Company into ZCCM-IH the ZCCM Ltd Group Environmental Services (GES) was transformed into an Environmental Department.

In 2012, ZCCM-IH decided to transform the Department into a subsidiary Company – Misenge Environmental and Technical Services Ltd (METS).

METs offers the following services: environmental consultancy, radiation and safety Management, analytical services and engineering services.

METS – Constructs Chibalashi Dam in Mansa

A very unique source of energy generation plant is now being considered in Muchinga Province of the country. In a press release from the Ministry of National Planning, Honorable Lucky Mulusa revealed that district, the state has embarked on a program to diversify the energy sector further by establishing a 400 MegaWatt gas fired and powered plant in Chinsali district the capital of the province at a cost of $900million.

Minister of Development Planning Lucky Mulusa said the establishment of the plant is one of the measures Government has put in place to increase the country’s power generation capacity.

The 400 MegaWatts is projected to propel generation capacity, hence cushioning any deficits the nation may face. The project, he said, will be executed under the Tanzania-Zambia Mafuta (TAZAMA) Pipeline Limited. The gas to power the plant will be sourced from Zambia’s Rift Valley neighbor Tanzania and part of it will come from the Mozambique gas project.

The power generation plant will be located in Chinsali will be supplied with gas from the port of Dar es Salaam via a 36-inch pipeline.The pipeline will be laid alongside the crude oil pipeline in the existing TAZAMA wayleave, with an estimated length of 1,100 km. The plant will have expansion capacity from 400 megawatts to 1,200 megawatts.

The Ministry is yet to advise the mode of capital raising for the project and who will construct the plant.

Speaking during the launch PRESIDENT EDGAR LUNGU says he is concerned with the huge disparity between the rich and poor in Zambia. President LUNGU said despite the poverty decline between 2006 and 2015 there was need for government to do more as rural poverty remains really high at over 70 percent.

The formulation of the 7NDP has been driven by its mother ministry; The Ministry of National Development Planning with wide and extensive consultation from line ministries.

Other involved were Provinces and Districts, Research Institutions, Think Tanks, Civil Society organizations, United Nations agencies and many Cooperating Partners.

The 7NDP which will cover the period 2017 to 2021 is in 2 parts comprising of Volume I and Volume II. Volume I outlines the aspirations of the development agenda for the next 5 years while Volume II is the clear implementation plan of the 7NDP.

The 7NDP has been classified into 5 Pillars namely:

(I) Economic Diversification and Job Creation

(II) Poverty and Vulnerability Reduction

(III) Reducing Development Inequalities

(IV) Enhancing Human Development

(V) Creating a Conducive Governance Environment for a Diversified and Inclusive Economy

The plan gives a direction of Zambia’s broad parameter of government development agenda in the next four years.

The 7NDP seeks to move away from the sectoral approach to the integrated approach; it also seeks to abandon the silo approach that takes away policy harmonization and policy consistency.

And the Head of State has urged Zambians from all sectors of life to support the implementation of the national development plan. This plan will become the broad framework from which annual fiscal budgets and the corresponding monetary policy decisions will be anchored.

Barrick executive chairperson John Thornton met Magufuli for talks in the commercial capital, Dar es Salaam, on Wednesday, the presidency said in an emailed statement. Barrick confirmed the meeting but not the details of what, if anything, had been agreed.

“Thornton said his company is ready to hold talks with Tanzania that will consider the interests of both sides and is ready to pay all the money it’s expected to pay Tanzania,” Magufuli’s office said. The government welcomes such talks and will establish a panel of experts to negotiate how the company will pay the money and how it will conduct future operations in the country, according to the statement.

The meeting took place two days after the Tanzanian leader accused Acacia of operating illegally and demanded it remit unpaid taxes. The accusation followed an audit of the country’s mineral exports over the past 19 years that found mining companies failed to remit taxes of as much as 108.5 trillion shillings ($48.5 billion) since 1998.

The two sides agreed to discussions to reach a “mutually acceptable solution,” Acacia said in an emailed statement, adding that the company will provide a further update during a scheduled conference call on Thursday. Acacia spokesperson Giles Blackham declined to provide further details.

Toronto-based Barrick, which owns 64% of Acacia, also agreed on Wednesday to help Tanzania build a smelter, according to the presidency’s statement, which didn’t provide further details.

Acacia shares traded 10% higher at 300.80 pence by 2:06 p.m. in London.

“The meeting was constructive and open, with the parties agreeing to enter into negotiations to seek a resolution that is in the best interests of all stakeholders, including Tanzania, Barrick, and Acacia,” Barrick said in a statement Wednesday.

Dr Kasolo noted that this approach presents ZCCM-IH as an investment gateway not only into Zambia’s mining sector, but into other sectors as well.

He was speaking during the annual 2017 Zambia Mining Investment Conference in London on 25 April 2017.

“We will continue to grow our portfolio beyond mining and will further increase our foothold in the energy sector, agriculture sector and real estate so that the company continues to maximize shareholder value”, said Dr Kasolo.

While presenting investment opportunities that ZCCM-IH has for potential strategic partners, particularly in energy, and oil and gas exploration, Dr Kasolo highlighted that the goal is to tap into new sources of consistent and stable income while reducing the risk profile of the Company’s portfolio, which currently has an exposure of more than 90% to copper.

He concluded by reiterating ZCCM-IH’s commitment to contribute to the industrialization of Zambia through new investments.

The Zambia Mining Investment Conference was this year mainly sponsored by ZCCM-IH.

The conference is a high level mining conference that looks at the state of the mining industry, and to promote the Zambian mining sector presenting opportunities and potential growth prospects for both investors and mining companies.

A mix of about 100 delegates from mining companies, investors, lenders, resource funds, Analysts, Investment Banks, various professional services organisations and consultants in the mining sector attended the conference.

ZCCM-IH chief executive officer Pius Kasolo said the two organisations which, continue to enjoy a cordial relationship, agreed on a payment plan and has been making payments from January to April.

“KCM paid US$20 million, US$22 million in February US$2.5 million in March and another US$2.5 million in April.

“Subsequent to the judgment ZCCM-IH and KCM agreed on a payment plan favourable for both parties in the interest of the business. KCM has since been making payments as agreed, and I must say we continue to work together as partners,” he said.

Dr Kasolo said ZCCM-IH remains committed to work closely with mining companies as they are partners in the development of the country and is confident about the fundamentals of the mining industry in general and those of copper.

“Overall, we will continue to grow our portfolio beyond mining and will further increase our foothold in the energy sector, agriculture sector and real estate so that the company continues to maximise shareholder value.

“We are focused on driving sustainable long-term growth and value creation in our investment portfolio,” Dr Kasolo said.

Source: Daily Mail

The need to do so arises from the  fact that there are many more avenues we can explore other than depend on copper alone to bring the country the much-needed export earnings.

The abundant God-given resources Zambia has should be put to good use, that is, they should create wealth that will benefit the country’s citizens and lift the index on export earnings.

The current economic challenges have left a negative impact on most enterprises. A number of them are struggling to break even in the realm of a harsh economic environment.

But these challenges have propelled some companies to consider novel ways of keeping afloat while remaining relevant to their customers. At the same time, the novel ways are also earning them more customers.

We have in mind the Zambia Consolidated Copper Mines – Investment Holdings (ZCCM –IH), which is diversifying its operations from mining to agriculture.
In support of such initiatives, government is tailoring its policies towards growing the economy, and the business sector would do well to take advantage of these policies.

Agriculture is not like mining. While mining may offer huge returns, they may not last longer than the ones offered in agriculture.

We are taught, from our secondary school lessons that copper is a wasting asset. Once it leaves the soil, there is no replacing it until we get to a point when we do not have it anymore.

With this in mind, the need to find other options to sustain a livelihood becomes imperative.

We can argue that it is difficult to come up with a sustainable way of mining but this is not the case with farming. As long as we use sustainable methods of preserving land, it will remain usable by future generations.

In comparison to mining, farming is a lot cheaper because it demands less labour and the processes involved in arriving at the final product are less expensive.

We therefore commend the ZCCM–IH for looking at eucalyptus production as an option to its current economic activities.

ZCCM-IH chief executive officer Pious Kasolo says the project will be established in Muchinga Province. It is expected that from the project, ZCCM-IH will produce biomass, fuel, essential oils, fertiliser, among other things.

We want to believe that the establishment of the project means the setting up of a plantation which will host the plants from which the by-products will come.

By its nature, a plantation will provide jobs for the local people and so will other processes that will involve extraction of the by-products from the plants.

If handled well, the project offers positive prospects that will propel not only the economy of Muchinga Province but the country at large and contribute to the gross domestic product.

There are a number of enterprises that are struggling and we are sure they would do well to consider diversifying their portfolio, like the ZCCM-IH has done.

Sticking to the old way of doing business will plunge some of them into further financial woes to the extent that they fail to meet their obligations to suppliers and workers.

Banks are usually available to offer capital for projects and we urge some of these companies to move in this direction. We are convinced the agricultural sector offers a better alternative for the survival of any enterprise.

There are also some new-comer enterprises on the market which are involved in a diversified range of economic activities and their balance sheet is showing positive results.

Zambia’s first ever thermal plant, Maamba is now operating at commercial capacity. Maamba Collieries Chief Executive Officer Venkat Shankar whose firm manages the thermal power plant says the plant has been built at a cost of over US$ 840 million and will generate 300 megawatts of power to mitigate the country’s power deficit.

Kamfinsa Female prisons on the Copperbelt has incarcerated mothers who are living with some of their young children within the facility.  According to the Mother of Millions  Foundation’s Faith Kalungia, the prison currently has seven (7) children between the ages of two (2) years to three (3) years, and three (3) new born babies. The number of children vary between 10 to 30 at a given time. These children face harsh conditions with no amenities provided to meet even their most basic needs.

ZCCM-IH women donated an assortment of items which will included: Small plastic tables, chairs, toys, small blankets, matts, a refrigerator and a TV set; for the Kamfinsa female prisons particularly for the children within the prison where their mothers are serving a sentence.

“We are not just women, we are also mothers. As mothers our hearts are gripped with sadness to see children in here suffering because of the mistakes of their mothers. We are here to offer support to these women and their children, and show them that the community outside has not forgotten about them…” Claudette M. Malambo, ZCCM-IH.

Mother of Millions, an NGO which is involved in helping and providing an early childhood education and recreation facilities within prisons received the donation in the presence of Zambia Prison’s personnel.

“On behalf of our Faith (Mother of Millions Founder), I would like to thank the entire ZCCM-IH team for this very generous donation to the Mother of Millions Foundation . The donation you have made is going to feed, clothe, and educate the children at Kamfinsa Female Prisons.” Mrs. Taonga Shamboko, Mother of Millions Foundation Head – Lusaka.

The donation was made during the commemoration of International Women’s Days on 8^th March 2017 at Lusaka’s Chimbokaila Prisons, where the Mother of Millions has already set-up a nursery school and playground for the children with incarcerated mothers at this facility.

I must mention and emphasize that ZCCM-IH is not in the business of litigating, but in the business of enhancing value for its shareholders.

In the quest to achieve this, there are instances where misunderstandings between parties have to be resolved by an independent body, which in this instance was the courts of law.

This should not be taken as a deliberate attack on our partners or indeed a quest to injure them. The action was undertaken because we are also answerable to our shareholders and various stakeholders which include the Zambian people.

ZCCM-IH remains committed to ensuring that the KCM operations continue in the country, and to provide the necessary support to them, to ensure that we enhance the value of our stake in the Company.

Following the judgment and this joint briefing, we wish to state that the business relationship between ZCCM-IH and KCM will continue, but also to remind our partners that we will do what is necessary to protect our interests.

Going forward, both ZCCM-IH and KCM have committed to manage the business, in a manner that is mutually beneficial to all the parties involved.

Dr. Pius C. Kasolo
Chief Executive Officer

ZCCM Investments Holdings obtained a default judgment in the U.K.’s High Court of Justice against Konkola Copper Mines on Dec. 16, it said in an e-mailed statement Monday. KCM said in an e-mailed statement on Tuesday that it’s consulting with ZCCM-IH and “other relevant stakeholders to resolve all outstanding issues within 30 days, in accordance with the court’s ruling.”

KCM hadn’t paid the money owed under the copper-price participation deal because of “operational and financial challenges,” ZCCM-IH, which has a 20.6 percent shareholding in Konkola, said in its 2015 annual report. The Vedanta unit was in talks with ZCCM-IH and the government to pay the claim, which needed to be settled from available cash flows, KCM Chief Executive Officer Steven Din said Nov. 10. The company was at that point hoping to resolve the matter out of court, after ZCCM-IH filed the case in June, he told investors on a call.

“We are working together to resolve this matter amicably,” Din told reporters at a joint press briefing with ZCCM-IH in Lusaka, Zambia’s capital, on Tuesday.

The court ruled that ZCCM-IH is entitled to recover more money from KCM if it’s found that the company transferred funds to Vedanta, which would have been in breach of the pricing agreement.

ZCCM-IH is also claiming damages from First Quantum Minerals’ Kansanshi unit in Zambia, in which it has a 20 percent shareholding, in the Lusaka High Court, and has started arbitration proceedings in London over the same matter related to a loan it said Kansanshi gave First Quantum that wasn’t at arm’s length terms. First Quantum denies any wrongdoing.

Source: Bloomberg

The ZCCM Investments Holdings Plc (ZCCM-IH) in this financial year (2016-2017) has planned to undertake a project dubbed “Clean Water for Zambia”, where it will focus on sinking 10 boreholes, as its core sustainable social investment.

This project was officially launched on Friday, 05 August 2016, in Chingobe Village, situated 60 kilometers from Sinda District Boma. The village with over 240 residents, and surrounded by 3 other villages, has had no access to clean water since 1964. Women and children, have been going to fetch for clean water from as early as 04:00 hours in the morning, from a hand dug well situated 3 kilometers away. The residents have also been using a nearby well, which was also hand dug, however, the water has not been fit for human consumption.

Headman Chingobe for the village stated that waterborne diseases have been recurrent amongst his people, and that the new borehole, will certainly help reduce cases of these diseases.

Speaking during the launch and handover ceremony of the borehole, ZCCM-IH Chief Executive Officer, Dr. Pius Kasolo said that this project is one way of ZCCM-IH ploughing back to society by sinking a number of boreholes in remote areas of the country with little or no access to clean and safe water such as Chingobe Village. “Chingobe Village is the first to receive this borehole, and we will spread the remaining 9 boreholes to other parts of the country”, said Dr. Kasolo.

He further reiterated that ZCCM-IH coupled with the “Clean Water for Zambia” project will help transform society’s livelihoods by encouraging horticulture farming at small scale by providing irrigation treadle pumps in areas where boreholes will be sunk. Families already into this enterprise with be given a boost, instead of using buckets for watering, they will use treadle pumps which will help increase their productivity. In executing this project, ZCCM-IH is working with NGOs who are currently on the ground working with various horticultural communities. These NGOs are Kickstart (Zambia) (the makers and promoters of the treadle pumps) and Profit+ (who will offer training to the selected potential farmers).

In this regard, 10 women clubs representing more than 280 horticulture farmers received irrigation treadle pumps. In order to make this project sustainable, Profit+ also received 5 treadle pumps which will be given to five lead farmers, who will help train the 10 clubs. Apart from this, the organization will guide these farmers to grow horticultural products that are on demand on the market such as red onion, which is currently being imported. Profit+ will also help in linking these farmers to off-takers on the market. The farmers thanked ZCCM-IH for the noble gesture, stating that the treadle pumps would go a long way in changing their livelihoods.

Eastern Province Permanent Secretary, Chanda Kasolo expressed gratitude to ZCCM-IH for sinking of a borehole and donating the 25 money maker irrigation treadle pumps. Mr Kasolo said all these efforts would go a long way in changing the lives of communities in a sustainable manner.

It will be the first time that most learners will see and use a computer. This development will enable the learners to adequately prepare for their ICT grade 7 and 9 examinations.

The lab was supported by other partners such as Shoprite (Zambia), Acrow (RSA), Katenga (RSA) & Olam.

Because of the computer lab, and the planned school library, Government through the Provincial Education Officer, Dr J. Kalumba, indicated that the school has been upgraded to a secondary school, the only one in the area.

Kateshi Primary School has been in existence since 1981, located inside the Olam coffee Estates premises, 30 km away from the Kasama Central Business District. It is surrounded by 15 villages, and kids often cover on average about 5 km to reach this school.

The school has a total of 940 pupils with six classroom blocks.

ZCCM-IH will continue offering any ICT needs and support for this lab.

Distinguished invited guests, ladies and gentlemen

It is a great honor and privilege for me to address you on this wonderful occasion, during this historic event for Zambia, as we host the 2016 Annual Meetings of the African Development Bank which started today, under the theme “Energy and Climate Change”.I understand that the theme of this year’s meetings draws on one of the Bank’s “High 5” priority areas, which is, to “Light up and Power Africa”.

Allow me to extend a special welcome to our international delegates.

It is my sincere hope that you will have an opportunity to sample some of the rich Zambian hospitality as you attend these meetings.

Distinguished Ladies and Gentlemen

May I take this opportunity to briefly talk about ZCCM Investments Holdings Plc.

ZCCM-IH is a diversified investments holding company, which is listed on the Lusaka Stock Exchange, Paris Euronext and London Stock Exchanges. The Government of the Republic of Zambia (GRZ) indirectly holds 60.28% of the ZCCM-IH shares through the Industrial Development Corporation Ltd (IDC), and 17.25% of the shares directly through the Ministry of Finance, with the remaining 22.47% of the shares held by Institutions and private investors.

ZCCM-IH currently has an investment portfolio of 15 companies, including some of the biggest mines in Zambia, such as Kansanshi Mining Plc, Mopani Copper Mines Plc and Konkola Copper Mines Plc.  Our shareholdings in the 15 companies range from 10% to 100%, with commodities and services that are diversified in nature; such as copper, gold, cobalt, coal, power, telecommunications, limestone, environmental & technical consultancy, financial services and gemstones.

In our strategic diversification efforts, as a company, we have ventured into the energy sector.

Invited Guests, Ladies And Gentlemen

One of the projects under our investment portfolio is a thermal power plant at Maamba Collieries Limited, in the southern part of the country.

The Maamba thermal power plant Project which will be producing 300MW of power is expected to be completed in July this year. ZCCM-IH owns 35% of Maamba Collieries Limited, and with its partners, have invested close to 850 million United States dollars into this project. Further, as ZCCM-IH we are also looking at investing in other alternative energy sources which would in turn provide substantial benefits for our climate, our health, and our economy.

Distinguished Ladies and Gentlemen

In closing, it is my sincere hope that the outcomes of these meetings, as we debate the social and economic development of the continent in line with the theme, will ultimately contribute towards overcoming the current power deficit at a local, regional and continental level in order to foster economic development.

With these remarks, I wish you fruitful deliberations during the next four days of the Conference.

Thank you for listening and May the Good Lord bless you all.

• The Honorable Minister of Mines and Minerals Development in Zambia, Mr Christopher Yaluma
• Your Excellency Ambassador Muyeba Chikonde, Zambia’s High Commissioner to the UK and North Irelend
• Distinguished invited guests, ladies and gentlemen

Thank you for inviting ZCCM-IH to be part of this forum.

Let me start by saying that the previous year has not been good for the extractive sector, particularly mining. We witnessed low prices in the sector slumped by about 30% at the beginning of 2015, dropping to six-and-a-half year low.

However, we have already seen a slight change from trading about 4 thousand dollars per ton in November 2015, to a significant jump, trading at slightly above 5 thousand dollars at the beginning of March this year.

Despite this, ZCCM-IH has put in place steps to respond to the cyclical nature of the commodity prices.

As a Company, we are diversified in nature. But we want to build on this by having a multi-commodity approach as an important part of our resilience.

This approach, presents ZCCM-IH as an investment gateway not only into Zambia’s mining sector, but into other sectors as well, as I shall highlight in a while.

Allow me to give you a very brief background about ZCCM Investments Holdings plc.

We are a Zambian investments holdings company with a rich historical background.

ZCCM-IH stems from the then Zambia Consolidated Copper Mines limited, a copper mining conglomerate that was incorporated in 1982 but with roots going back to the early 20th Century that operated more than 10 mines.

Before I go into details, let me play a short clip about ZCCM investments holdings.

(CLIP DURATION 3 MINUTES 11 SECONDS)
You notice from the video that ZCCM-IH is an Investment holding Company and not a mining company. Most people still call us “Zambia Consolidated Copper Mines limited”, and still think we are a mining company. However, this changed, as I have stated, in 2000 after privatization.

As a company, we retained minority shareholdings in the sold off mines at the time of privatization and started operations with a vision to be Zambia’s leading investments company and a mission to maximize shareholder value with due regard to the interests of all stakeholders.

The Government of the Republic of Zambia retained a significant shareholding in the new entity of about 87.5% at the time with the balance held by individuals and institutional investors spread around the world.

Mid last year 2015, Government launched the sale of some of its shares to the Zambian public. This was in accordance with the Lusaka Stock Exchange minimum free (public) float requirements of 25% of the shares.

As such, Government embarked on the sell down of its shares from 87.5% to 60.3% through the preferential secondary market offer.

The first sell down was done, successfully, as one of the leading pensions authority in Zambia bought about 15%. The second sell down specifically to the general public, was done late last year. GRZ still has 17.25% of the shares to sell down.

Currently government’s shares of about 17.25% and about 60.28% are being held by the Industrial development corporation (IDC) in Zambia.

Again if you saw, ZCCM-IH is listed on 3 stock Exchanges: a primary listing on the Lusaka Stock Exchange and also on the London Stock Exchange and the Euronext (Paris – Marche Libre).

On the LuSE, ZCCM-IH is the largest company by market capitalization.

Current Portfolio
ZCCM IH occupies a very unique and strategically advantageous position as an investments holding company, as it holds key minority interests across the mining industry in Zambia as shown in the video clip you just watched.

ZCCM-IH currently has a shareholding portfolio in 15 companies, including biggest mines such as Kansanshi mines plc, Mopani copper mines and Konkola copper mines.

Our shareholdings in these companies range from 10% to 100%. The commodities are diversified in nature, from copper, gold, cobalt, coal and energy, telecommunication, limestone, mining consultancy, financial services and gemstones.

Copper makes about 80 to 90% of these commodities.

Diversification
Let me hasten to mention that, maximizing shareholder value underpins ZCCM IH operations.

As I have stated earlier, ZCCM Investments Holdings core assets lie in the mining sector, and this makes about 80% to 90% of our portfolio. For the past years ZCCM-IH has relied on dividend pay-outs largely from mining firms.

As we all know, the extractive industry is very cyclical in nature. As such, in order to move from being passive and just being a holding company, we have embarked on diversifying our investment portfolio by relentlessly and actively pursuing investment opportunities in other sectors such as real estate, agriculture, energy and manufacturing.

To start with, in AGRICULTURE, ZCCM-IH has about, 2 thousand Hectares of land in Lufwanyama with a water frontage on the Copperbelt Province, which has great potential for farming high yielding crops such as soyabeans, oilseeds or livestock (cows and pigs) and fisheries (aquaculture).

This farm land, is in an area which has a good rainfall pattern, and fertile soil. We are currently, seeking any financials or any strategic partnerships to come on board on this project.

Secondly, we have also gone into the PROPERTY MARKET. We have a number of properties, both residential and office, which are dotted on the Copperbelt Province and in Lusaka. We have decided to upgrade them, some of them to be sold off and others rented out.

Then in ENERGY, a number of projects in solar and hydro are on the cards for investment, and this is in effort to leverage on the power deficit the country and the region is experiencing. For example, ZCCM-IH with its partners have invested close to $850 million at Maamba Collieries Ltd, into a thermal power plant which will produce 300MW of power by this year 2016 and 600MW once completed.

Further, in our diversification agenda, as ZCCM IH, our aim is to optimize operations and add value to our subsidiary companies via investments and stringent monitoring of these investments. As such, ZCCM-IH has invested millions of dollars in its wholly owned subsidiary, Ndola Lime Company to restructure operations and improve efficiencies and the bottom line.

One of the planned investment projects through Ndola Lime Company Limited is the setting up of a cement plant, which will have a daily production capacity of 5000 tons per day. Related to this plan, is for the cement plant to generate energy for its operations and the surplus sold to the national grid.

Through these and other programmes, we will be able to deliver compelling long-term returns and maximise shareholder value.

ZAMBIA: SNAP SHOT
I would like to state that the investment environment in Zambia is enabling in almost all aspects.

Zambia has had one of the world’s fastest growing economies for the past ten years, with real GDP growth averaging roughly 6.7% per annum, in spite of a drop in this growth in the previous year due to weaker global demand for commodities, lowered mining sector production, a poor farming season and electricity supply constraints, among others.

Despite the current global economic and domestic challenges Zambia remains well placed to weather the storm and maintain its progress with development objectives.

With substantial mineral wealth and untapped resources in agriculture, hydropower, and tourism, Zambia’s growth potential is very good.

For instance, ZAMBIA’s ranking in capacity to attract foreign direct investment in the region, on the continent and globally has tremendously increased in the recent past.

The World Bank released its ‘Ease of doing business’ report late last year which showed Zambia’s increased credit ranking from being 24 to number 19 out of a total of 189 countries which are monitored by the Bank.

In addition, Zambia is ranked 8th in Africa, 5th in SADC, and 4th in COMESA when it comes to rankings of the country’s conducive investment environment in as far as issues of doing business are concerned.

Further, when it comes to social and political stability, there is a lot of political will to ensure peace. Zambia is the only country in the region that has changed political leadership through peaceful transitions.

Let me reiterate, the Zambian political situation remains stable and infrastructure is improving as the economy further develops. Roads, railways, and airports are being vastly improved, particularly in areas of economic significance like the Copperbelt region. All of this growth in infrastructure can be attributed to Zambia’s growing economy.

Potential markets are not just limited to Zambia, however, but extends to the entire region due to its central geographical location through its participation in SADC and COMESA Trade Protocols. Both of these agreements offer preferential tariff arrangements and growing markets.

Outlook
Coming back to ZCCM IH, we will continue to grow our portfolio beyond mining and will further increase our foothold in the energy sector, agriculture sector and real estate so that the company continues to maximize shareholder value.

The Company has identified value adding projects in these sectors and we are seeking strategic partners to bring these projects to fruition.

ZCCM IH remains confident about the fundamentals of the mining industry in general and those of copper in particular despite the low prices in the sector, which so far, have started going up as evidenced in the past two months.

But we must understand, that the cyclical nature of the commodities sector rewards those who are well positioned and we believe ZCCM-IH is uniquely well positioned, as a diversified principal stakeholder in Zambian mining, offering vast opportunities for investment.

So I invite you, to come and be part of the journey to success.

Thank you.

• The Honorable Minister of Higher Education, Science & Vocational Training, Dr Michael Kaingu
• Your Excellency Ambassador Bernd Finke, Germany High Commissioner to Zambia
• The Acting Vice Chancellor, Prof. Enala Mwase
• The ZACCI President, Mr Geofrey Sakulanda
• The University of Siegen Representative, Prof. Hubert Roth
• Distinguished invited guests, ladies and gentlemen

I am pleased to be invited to this very important inaugural workshop of the programme “towards demand driven teaching in Uganda and Zambia”, which will run for four years from this year 2016.

I understand a number of strides closely related to the programme have been made since 2012 such as the establishment of a business university partnership between Zambia and Germany and the setting up of a link desk at the Zambian Association of Chamber of Commerce and Industry.

As ZCCM-IH we will be delighted to be part of, and contribute to such an initiative with efforts aimed at better satisfying the requirements of the job market in the country, particularly, the extractive industry.

Just a bit about ZCCM IH, we have a portfolio of 15 Companies; our exposure to mining forms about 80% to 90% of our portfolio.

Allow me to play a short clip that explains what ZCCM Investments Holdings is about.

(CLIP Duration 3 Minutes 11 Seconds)
You notice from the video that we are ZCCM Investments Holdings Plc, and not “Zambia Consolidated Copper Mines limited” as it were before privatization.

ZCCM is not an acronym, we are an investment holding company and not a mining company.

Ladies and gentlemen,

ZCCM Investments Holdings Plc owes its continued existence, to the mining industry, where, at the moment, virtually all of its investments are held.

Under our corporate social investments, it is the intention of the Company to provide support to such initiatives.

We acknowledge that the shortage of skilled manpower in the mining sector, no doubt has a telling effect on the industry as this may result in losing out on the opportunity of creating a mass of skilled labour that can drive the industrialisation process of the country.

Ladies and gentlemen,

For Zambia to remain and continue being competitive and contribute to economic development, it requires adequate skills that are responsive to job markets.

We therefore see the Germany-Zambia universities partnership as being complementary to efforts aimed at addressing these skills needs, which require industry and training institutions to work together in many ways including curriculum development, provision of student industry placements and other relevant aspects of skill training.

As such, I would like to reiterate ZCCM-IH’s participation in this initiative through making ZCCM-IH experts available to provide the necessary inputs into the development of the curriculum, student attachments at our wholly owned technical subsidiaries, Misenge Environmental and technical services limited in Kitwe, Mawe Exploration and Technical Services Limited in Kalulushi and Ndola Lime Company.

ZCCM-IH will also consider providing financial support towards the universities’ efforts in initiating the establishment of a business technology incubator centre during this programme.

We acknowledge that this intervention will help address the current skills mis-match in the labour market, particularly, the extractive industry.

Ladies and gentlemen,

Thank you for listening.

• The Honorable Minister of Mines and Minerals Development in Zambia, Mr Christopher Yaluma
• Your Excellency Mr Emmanuel Mwamba, Zambia’s High Commissioner to South Africa
• The Mines Deputy Minister, Mr. Richard Musukwa
• The Finance Deputy Minister, Mr. Christopher Mvunga
• The Chief Executive Officer, Vedanta Resources PLC, Mr Tom Albanese
• The Chief Executive Officer, Gemfields Plc
• Senior officials from the Ministry of Mines
• Distinguished invited guests, ladies and gentlemen

Thank you for taking time to come and be part of this discussion.

The Honourable Minister of Mines and minerals development, Mr Yaluma has spoken at length on what the Zambian government is doing to ensure the growth of a vibrant and sustainable mining industry beyond the cycles in Zambia.

The call to investing beyond mining cycles has been the main thread running through most of the discourses here at the Indaba.

ZCCM-IH has a portfolio of 16 Companies; our exposure to mining forms about 80% to 90% of our portfolio.

Going forward, ZCCM Investments Holdings’ strategy is to diversify our investments into other sectors of the economy like Agriculture, Energy and Manufacturing.

Before I say much on this, let me just play a clip about ZCCM investments holdings.

(CLIP Duration 3 Minutes 11 Seconds)
You notice from the video that ZCCM-IH is an Investment holding Company and not a mining company. Most people still call us “Zambia Consolidated Copper Mines limited”, and that is why we are trying to raise awareness on our rebrand as an investment holdings company.

Ladies and gentlemen,

We feel ZCCM-IH occupies a very unique and strategically advantageous position as Zambia’s biggest investments holding company, as it holds interests across the mining industry in Zambia.

In as much as this exposes us to the cyclical nature of the extractive industry, particularly copper mining, as ZCCM-IH we remain confident about the fundamentals of the mining industry in general and those of copper in particular.

The cyclical nature of the commodities sector will reward those who are well positioned and ZCCM-IH is uniquely well positioned.

Added to this, we want to continue maximizing shareholder value, which underpins ZCCM IH operations.

Hence, we will continue to grow our portfolio beyond mining and will further increase our foothold in the energy, manufacturing, agriculture and real estate sectors.

The Company has identified value-adding projects in these sectors and will seek strategic partners to bring these projects to fruition.

Come and be part of the journey to success.

Thank you.

Later in the evening during the Prize Giving Ceremony, he reminded those in attendance that ZCCM-IH shares were available for purchase as part of the GRZ sale down of its Shares and that the Company was the best investment they can make on the Lusaka Stock Exchange due to its extensive diversified portfolio which includes the major mines in Zambia.