State transfers its shares in Maamba Collieries to ZCCM-IH
Government has transferred all its shares held in Maamba Collieries Limited (MCL) to the Zambia Consolidated Copper Mines Investments Holding Plc (ZCCM-IH) in order to revamp operations at the coal mine.
The transfer of the 100 per cent government shares to ZCCM-IH is aimed at transforming Maamba Collieries Limited (MCL) into a viable business entity in the Zambian economy.
Minister of Finance and National Planning Ng’andu Magande and his Mines and Minerals Development counterpart, Kalombo Mwansa said in a joint statement released to ZANIS today that government and ZCCM-IH have since signed a share transfer agreement.
Government and ZCCM-IH have also signed an agreement in support of MCL scheme arrangement, which would make the coal mine become a wholly owned subsidiary of ZCCM-IH.
“With this new status, it is envisaged that ZCCM-IH will now begin the process of recapitalizing and reinvesting in Maamba Collieries Limited,” they said.
They said the payments due to the credits arising from the scheme arrangement shall only be affected after the scheme has been approved by the court.
Mr. Magande and Dr. Mwansa stated that government would allow ZCCM-IH to seek equity partners and to implement the restructuring of Maamba Collieries limited.
ZCMM-IH would further rehabilitate and recapitalize the mine and retain all employees on their current conditions of service and employee redundancy and other liabilities in Maamba without further recourse to government.
“GRZ and ZCCM-IH are confident that the steps taken will breathe a new life in MCL, address the various problems including environmental issues faced by the company and improve the supply of coal for improved industrial production in Zambia,” the two ministers said.