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Tuesday, 19 February 2013

Higher mining ownership?

ZCCM-IH is pushing for higher dividends from its investments in Zambian subsidiaries of Vedanta Resources (Mopani) and Glencore International (Konkola), among others . The government owned investment arm also wants to negotiate increased stakes in local mines, though talks have to commence, according to the ZCCM-IH CEO, “Clearly, it is a matter that keeps coming up regarding the level of shareholding that we should have...It is something that we will have to deal with at some point.”

Government has maintained minority stakes ranging from 10 percent to 21 percent in some mining companies, which it holds through ZCCM-IH. It wants the companies in which it has shareholdings to alter their dividend policies to improve transparency and increase payouts. At present dividends are the last priority for some companies, which has led to little benefit to country.

The new ZCCM-IH policy will also focus on buying stakes of as much as 35 percent in new mining projects, such as Nava Bharat Pte Ltd.’s Maamba Collieries. It also wants to boost ownership of existing operations, though this will clearly depend on how well it will negotiate. Government has no intention of any compulsory acquisition, because that is going backward.

We have previously flagged up the new ZCCM-IH policy framework. Private investors who own about 12% in ZCCM have been cautiously optimistic of how the ZCCM-IH has now got back on track. The Ministry of Mines must be commended for the good work for getting ZCCM-IH back on track. It is quite clear there's also renewed momentum to do more. 

1 comment:

  1. ZCCM-IH seems to be in a phase of renewal but opacity still predominates. In november 2012, dozens of Minority Shareholders were disatisfied and have challenged the chairman Willa Mung’Omba and ZCCM-IH management to demand accountability before the last AGM.
    Mung’Omba feeds Minority shareholders with honeyed cakes to hide the real issues

    Why has appointment of a director to represent minority shareholders on the ZCCM-IH Board been deferred ?

    Does the PF govt through it chairman Mung’Omba not be satisfied with the results of election ?

    What were the candidates? why does he tamper with the results ?
    Why does Mung'Omba want to appoint a puppet ?

    Maybe he is afraid that the representant of minority shareholders would detect mismanagement and/or misappropriation. What does the PF government have to hide?

    - $100 million were swindled from ZCCM ? WHO play this dirty trick and WHERE is the money ?

    - Zambia continues to lose on dividends from Mopani Copper Mines as the Glencore owned mine never declare any dividends to Zambia Consolidated Copper Mines Investment Holdings. During the period under review, Action Aid estimates that the Zambians government lost an estimated USD 50 million per year in undeclared dividends to ZCCM IH by Mopani.Copper Mines, according to Action Aid was avoiding declaring anydividends by ZCCM IH through transfer pricing and over statement of the costs.

    at least $300 million lost between 2003 and 2008, why the PF govt is so lenient ?



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