ZCCM-IH to lever­age off buoy­ancy in min­ing to max­i­mize share­holder value.

Zambian Business Times - - FRONT PAGE -

THE Zam­bia Con­sol­i­dated Cop­per Mine- In­vest­ment Hold­ings ( ZCCM-IH) Chair­man Eric Sil­wamba, has charged that min­ing will con­tinue to be...

By James Nyirenda

THE Zam­bia Con­sol­i­dated Cop­per Mine- In­vest­ment Hold­ings ( ZCCM-IH) Chair­man Eric Sil­wamba, has charged that min­ing will con­tinue to be Zam­bia’s main eco­nomic driver for the fore­see­able fu­ture. As such, the na­tion’s min­ing in­vest­ment ve­hi­cle ( ZCCM-IH) will con­tinue to lever­age its unique po­si­tion as a key player in the ex­trac­tive sec­tor to cre­ate value for its share­hold­ers.

In re­cent years, the min­ing in­dus­try by and large ex­pe­ri­enced a de­cline in growth as a re­sult of weak cop­per prices on the back of low de­mand by key con­sumer coun­tries such as China, Sil­wamba said.

He added that, the first half of 2016 saw a con­tin­ued deficit in en­ergy, which re­sulted in low pro­duc­tion and pro­duc­tiv­ity hence re­duced rev­enues for most min­ing com­pa­nies. With the lower than ex­pected per­for­mance in the min­ing sec­tor, rev­enues for the IH Group plum­meted. “The last quar­ter of 2016 and the first quar­ter of 2017 saw an im­prove­ment in cop­per pro­duc­tion for most ma­jor min­ing com­pa­nies due to sta­bil­ity in en­ergy sup­ply and an im­prove­ment in cop­per prices on the world mar­ket,” he said.

Sil­wamba in­di­cated that growth in the min­ing sec­tor is ex­pected to con­tinue as ma­jor economies mainly the United States of Amer­ica - USA and China have em­barked on ex­pan­sion pro­grams in the man­u­fac­tur­ing and in­fras­truc­ture de­vel­op­ment sec­tors.

“ZCCM-IH is poised to take ad­van­tage of the ex­pected buoy­ancy of the min­ing and re­lated sec­tors to in­crease share­holder value,” he stated.

On fi­nan­cial per­for­mance, Sil­wamba said the group’s re­tained earn­ings as at 31 March 2017 were pos­i­tive at ZMW891mil­lion and ZMW147mil­lion in 2016. The in­crease in re­tained earn­ings was at­trib­uted to profit recorded at group level of ZMW729mil­lion with a loss of ZMW2,912mil­lion in 2016. The com­pany’s re­tained earn­ings in­creased by 740% to ZMW731mil­lion as of 2016 with ZMW87mil­lion ow­ing to prof­its recorded at com­pany level.

He em­pha­sised that, 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 USD$2bil­lion 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,” Sil­wamba said.

Mean­while ZCCM- IH CEO Dr. Pius Ka­solo said the com­pany has con­tin­ued to meet its so­cial obli­ga­tions dur­ing the year by sup­port­ing var­i­ous so­cial and cul­tural events and ed­u­ca­tional pro­grams among oth­ers.

He said the ma­jor cor­po­rate so­cial re­spon­si­bil­ity (CSR) ini­tia­tives for year were aimed at sup­port­ing the re­al­i­sa­tion of the United Na­tions’ Sus­tain­able De­vel­op­ment Goals (SDG) with the SDG num­ber six (6) which aims at ‘en­sur­ing ac­cess to wa­ter and san­i­ta­tion for all’. Dur­ing a me­dia brief­ing in Lusaka, Dr. Ka­solo dis­closed that ZCCM-IH sup­ported liveli­hoods im­prove­ment in­ter­ven­tions fo­cused on women by pro­mot­ing hor­ti­cul­tural farm­ing ac­tiv­i­ties. ZCCM-IH pro­vided trea­dle pumps to ten (10) women groups aimed at im­prov­ing ac­cess to wa­ter for ir­ri­ga­tion thereby in­creas­ing sources of in­come from farm­ing ac­tiv­i­ties.

“In to­tal, the com­pany spent ZMW0.21mil­lion in 2016 sup­port­ing var­i­ous cor­po­rate so­cial re­spon­si­bil­ity ac­tiv­i­ties. The com­pany’s en­vi­ron­men­tal re­lated ac­tiv­i­ties con­tin­ued to be man­aged through Misenge En­vi­ron­men­tal and Tech­ni­cal Ser­vices Com­pany Lim­ited (METS), which is a wholly owned sub­sidiary of ZCCM-IH,” Dr. Ka­solo nar­rated.

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