titicoop 4 ZCCM−IH SHAREHOLDING IN MINING COMPAINES
607. Mr Mwila (Chipili) asked the Minister of Mines, Energy and Water Development:
(a) what the benefits of the ‘golden share’ held by the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) in mining companies were;
(b) how much money was paid to the ZCCM−IH as dividends by the mining companies from 2011 to 2013, year by year; and
(c) which companies did not pay the dividends during the period at (b) above.
The Deputy Minister of Mines, Energy and Water Development (Mr Musukwa): Mr Speaker, the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) does not hold golden shares in any mining house. Golden shares in mining houses are held by the Government of the Republic of Zambia as provided for in the Shareholding Agreements and Articles of Association, through the hon. Minister of Finance or his nominee.
Mr Speaker, the benefit of the Government holding golden shares in mining companies is that they are a means of protecting national interests, as they provide for special voting rights and power to veto other shares on specific issues of national importance. Unfortunately, they do not confer the right to participate in the capital or profits of the company. However, in the event that the company wound up, the Government would be entitled to a portion of the capital.
Mr Speaker, like I indicated, the ZCCM-IH owns ordinary, not golden, shares in mining houses, and received K518.77 million as dividends from 2011 to 2013, broken down as follows:
Company ZCCM-IH Dividends for Year Ended (K’million) Shareholding (%) March 2011 March 2012 March 2013
Chibuluma 15.0 5.9 28.48 15.20 Mines Plc
Mopani 10.0 – – 5.25 Copper Mines
Kansanshi 20.0 131.46 15.37 196.69 Mining Plc
Konkola 20.6 – 23.63 82.59 Copper Mines Plc
NFC Africa 15.0 14.19 – – Mining Plc
Totals 151.55 67.48 299.74
Mr Speaker, K54.5 million out of the K82.59 million from Konkola Copper Mines (KCM) is still outstanding.
Sir, the following mining companies did not pay dividends during the period under review:
Company ZCCM-IH Percentage Shareholding
Chambishi Metals Plc 10.00
CNMC Luanshya Copper Mines Plc 15.00
Maamba Collieries Limited 35.00
Lubambe Copper Mine Limited 20.00
Ndola Lime Company Limited 100.00
Mr Speaker, I thank you.
Mr Mwila: Mr Speaker, the hon. Minister submitted that K518.77 million was received as dividends from 2011 to 2013. How was that money spent?
Once we get approval hopefully, we will have our own zinc boom on here. The zinc price has gone up 20% recently and our share price hasn't budged an inch. Bearing in mind we have nearly 2 million tons of zinc at our disposal, it's a little surprising!
Like I say, once approval comes perhaps we can start to be pegged with the changes in metal prices.
Wilbur should have also (allegedly, cough cough) added: "...... unless of course the Zambian powers that be, themselves stall progress by deferring decisions on EIA applications, thus preventing the commencement of commercial production in any form......".
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