Message Jeu 12 Jan 2012 08:33

ZCCM-IH seeks more shares in Kariba Minerals

By Maimbolwa Mulikelela
ZAMBIA Consolidated Copper Mines-Investment Holdings (ZCCM-IH) is discussing with stakeholders to buy 50 per cent shares in Kariba Minerals, the country’s largest amethyst producer.
Kariba Minerals Limited, a 50-50 joint venture between Gemfields and the Zambian Government, operates the country’s largest single amethyst mine at Mapatizya in Southern Province.
Kariba Minerals has long been a reliable source for quality amethyst for major processors of gemstones and other related products.
The company’s market share is estimated at more than 90 per cent and presently, the company exports mainly to China and India including other potential markets in Europe and the US.
ZCCM-IH chief executive officer Mukela Muyunda said the Company was seriously looking at investing in Kariba Minerals Limited as part of its diversification programme.
Mr Muyunda said currently, the company was in discussion with Kariba Minerals in an effort to buy the 50 per cent stake which would consequently see ZCCM-IH increase its investment portfolio.
In an interview in Lusaka, Mr Muyunda said ZCCM-IH was diversifying into the mining sub-sector and would be investing in Kariba Minerals Limited once the discussions are successfully concluded.
“We are not only investing in copper mining alone but we are also going into other sub-sectors of mining such as coloured gemstones, so, we are seriously investing in Kariba Minerals Limited in Mapatizya dealing in amethyst,” he said.
Mr Muyunda said ZCCM-IH was in the process of reviewing its strategic plan which would stipulate the areas where the firm could diversify into.
“Currently, we are in the process of reviewing our strategic plan so that we can see other areas where we can diversify into including some element of manufacturing,” Mr Muyunda said.
He said the strategic plan was expected to be finalised by the end of February and it would be much clearer on which other areas to diversify into.
Mr Muyunda explained that ZCCM-IH holds 87.6 per cent shares on behalf of the Government, while 12.4 per cent was owned by the private investors, saying it was important to put the investment to good use.
Mr Muyunda said, ZCCM-IH also owned 35 per cent shares in Maamba Collieries Limited adding, that it was an integrated project with the element of mining and thermal power.
The company plans to set up a 300 MegaWatt thermal power project in Southern Province which will be connected to the national grid.
Nava Bharat (Singapore) Property Limited, a subsidiary of Maamba Collieries Limited by the acquisition of 65 per cent equity stake from ZCCM-IH in April 2010 through the privatisation process.