The minority Shareholders of ZCCM-IH have welcomed the appointment of Mr Mabvuto Chipata as the new Chief Executive Officer. In a statement released to Lusakatimes the Euronext Minority Shareholders said they are relieved that the Pius Kasolo page has been definitively turned.
Below is the full press statement
The minority Shareholders of ZCCM-IH welcome the appointment of Mr Mabvuto Chipata as the new Chief Executive Officer. We are relieved that the Pius Kasolo page has been definitively turned.
After several years of hazardous, inconsistent and disastrous investments, in a few months as acting CEO, Mr Chipata has refocused investments on our core business, mining operations as an operator. This is the only way to no longer depend on our indelicate and unfair partners. We encourage him to continue along this path.
The challenges facing Mr Chipata are many: managing the KCM case in the best possible way,twisting the arm of many mining companies that have supposedly made no profit all these years and are not paying ZCCM-IH any dividends, recovering our share of Kansanshi retained profits from First Quantum Minerals, intervening in the Zesco/CEC/Maamba case where ZCCM-IH is involved and weakened.
In addition, despite current overcapacity in cement production, fierce competition between the various players, the construction of new cement plants by competitors by 2022 doubling production capacity in Zambia, a difficult economic situation in the country and more generally worldwide, the majority shareholder of ZCCM-IH, the Government of Zambia, has nevertheless decided to complete the $600 million CAC cement plant project.
We estimate ZCCM-IH’s share of CAPEX required to be between $50 million and $60 million while ZCCM-IH injects its last meagre resources into KCM. How will our company be able to finance this cement plant? After the bankruptcy of Ndola Lime, the bankruptcy of KCM, various disastrous investments, will we see another bankruptcy? We fear this very much.
We rely on our CEO’s sound knowledge of the company, his skills and his teams in order to pursue this project without economic rationality and the future business as little damage as possible to our company, which is already in a very delicate financial situation.
Thierry CHARLES on behalf of Euronext Minority Shareholders of ZCCM-IH
FRANCE, October 20th 2019