Tuesday, June 18, 2024

ZCCM-IH still has shares in Kansanshi Mining PLC – Kasanda

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The government has refuted social media reports that ZCCM Investments Holdings (ZCCM-HI) has sold its shares in Kansanshi Mining Plc.

Minister of Information and Media Chushi Kasanda said under the terms of agreement between ZCCM-IH and First Quantum Minerals (FQM) over the management of the Kansanshi Mining Plc states that ZCCM-IH will receive a 3.1 percent royalty payment form the revenue of Kansanshi Mine.

Ms Kasanda who is also Chief government spokesperson said on 1st December the deal announcement was made adding that the royalty is estimated to be in the region of 50 -70 million United States Dollars per year.

She noted that this will be dependent on the gross value of metal products mostly copper and gold sold, adding that otherwise extracted at Kansanshi mine.

Ms Kasnda added that this agreement is valid for the entire life of the mine and follows extended discussions between ZCCM-HI compared to the previous arrangement.

She explained that the advantage of this arrangement for ZCCM-IH is that the royalty will be paid out so long as Kansanshi is operational, while creating a more predictable and consistent revenue stream that ZCCM-IH can use to raise financing and follow its ambitious investment strategy.

Ms Kasanda said dividesnts by contrast would only be paid when the mine makes profits adding that ZCCM-IH will continue to hold its shares in Kansanshi and also continue to be represented on the board of Kansanshi in order to ensure full visibility and transparency regarding the mine’s operations.

“This increased and consistent revenue will allow ZCCM-HI to effectively plan for the future and enable it to pursue an ambitious investment strategy that will create jobs and promote growth in the country,” Ms Kasanda said.

Ms Kasanda has since advised citizens to remain vigilant and ignore misinformation which claims that ZCCM-HI is abandoning its stake in Kansanshi adding that this is a new agreement that provides a more beneficial revenue stream while still maintaining ZCCM-IH’s ownership in Kansanshi.

She further added that the agreement provides a win-win opportunity for both ZCCM-IH and Kansanshi and that it’s in line with the government’s vision of promoting sustainable investment in the mining sector.

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