Friday, November 15, 2024

ZCCM-IH makes $55m payment to State

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File: ZCCM-IH board chairman Alfred Lungu and Chinese Tao Xinghu sigh documents for the co-development of Mufulira tailings.

ZCCM-Investments Holding Plc (ZCCM-IH) has made a part payment of US$55 million towards the pre- privatisation loans owed to Government. The group has also achieved a turnover of K891,764 million during the six-month period ended September 2011 which is 212 percent above the turnover of K265,896 million for six months recorded on September 30, 2010.

This is according to unaudited results for the six-month period ended September 30, 2011 released by company secretary Chabby Chabala. Mr Chabala said the money owed to Government was paid during the period under review.

He also said the company turnover is 212 percent up compared to K285, 896 million for the six months to September 30, 2010. Mr Chabala attributed the increase mainly to a profit of K699, 137 million proceeds of K802, 357 million (US$167,507 million) less cost of K103, 220 million from the sale of shares in Equinox Minerals Limited.

He, however, said the turnover for Ndola Lime Company (NLC) at K105, 254 million declined 41 percent from that of the same period in 2010. He said the decrease is largely due to the shutdown of the rotary kiln on account of a breakdown of the electrostatic precipitator.

“With only the vertical kiln being operational, there was reduced production which in turn resulted in reduced turnover and cost of sales compared to that for the period ended September 30, 2010,” he said.

Meanwhile, ZCCM-IH also says events in the Euro Zone are likely to impact adversely on global commodity demand and prices. Mr Chabala said with lesson learnt from the global financial crisis, a number of mining companies have kept a close watch on unit production costs in order to better manage base metal price fluctuations.
“We are keenly observing events in the Euro Zone and the effects being made to address them,” he said.

ZCCM-IH is an investment holdings company which is quoted on the Lusaka, London and Euronext Stock exchanges, and has the majority of its investments held in the copper mining sector of Zambia.

The company’s shareholders are the Government of the Republic of Zambia with 87.6 per cent shareholding while private equity holders take up 12.4 per cent. Minority shareholders are spread throughout the world in various locations.

[Zambia Daily Mail]

11 COMMENTS

  1. Phew, the amount given is huge. So ZCCM – IH makes a lot of Money. Why cant they take over “closed mines” like Albidon Munali Nickel Mine in Mazabuka and start new mines to derive maximum returns for Zambia?

  2. Does anybody remember when PF just came into power and some dull Minister started chasing ZCCM-IH looking for where the money was, and giving the management some ultimatums?  His name was Wilbur something and and told people on this blog that publicly listed companies have a way of conducting business and declaring dividends and what that Minister was doing was out of line.

    Anyway, I hear he so since been re-aligned or rather fired PF style.

    So there you have it. 

  3. Isn’t this the same money that PF, and Wilbur Simuusa in particular, claimed had gone missing from ZCCM-IH? They were trying to claim that MMD has used the money for campaigning in the 2011 elections. How these liars forget so easily? Or is it verbal diarrhoea, as shown by Satan, of talk first, think later? SHAME!!!

  4. @BA zambia
    ,

    Just admit it! PF have been so ignorant about corporate law and procedures. Because they are thieves, they think that everybody else is a thief. It is you who is bietter that your party lies do not hold. No money was stolen, no excess Kwacha was printed, no elections were rigged, and there is no MMD bigwig imprisoned for theft or corruption. It is you who is paining!!

  5. How can ZCCM-IH a big company make such a turnover? A mining company make a turn over of less than 1billion Kwacha in six months? How much are staff salaries then? PF govt should send Auditors. This is pure understating the sales.

  6. Hmm. Still can’t get my head around how we agreed to that deal where a certain mine sold for over $6 billion and we were meant to be impressed at coming out of it with less than $150 million. Perspective is personal to holder. Just glad to know those kind of deals are history. If all sides/parties remain vigilant, we actually do have better deals to be made that will truly benefit Zed.

  7. Zambians still cannot make anything work. Proceeds from sold shares and they claim increased turnover? Ndola Lime still limping. What is wrong with ZAMBIAN managers? I will tell you what is wrong. I read Mr Milupi’s interview and I discovered the diagnosis. It’s purely and simply inexperience, immaturity and pride. This is just an awful story. $50 million ONLY?

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