ZCCM-IH earned K1bn revenue in 2011 – report

mineral exploration
mineral exploration

THE revenue for ZCCM-Investment Holdings for 2011 hit K1 billion, the Extractive Industries Transparency Initiative (EITI) report has revealed.
The revenue came from the sale of its shares in Equinox Minerals the former owners of Lumwana Mine, dividends received and the price participation fees.
The firm’s increase was mainly due to the sale of the 2.28 per cent stake in Equinox Minerals.
According to the latest EITI Report, ZCCM-IH received about K814 million from the sale of its shareholding in Equinox Minerals which represents 79.3 per cent of the company’s revenue.
The report said ZCCM-IH received dividends amounting to about K116 million representing 11.3 per cent of its revenue, while the price participation fees stood at K97 million  or  9.5 per cent of the company’s proceeds.
In the period under review, five mining companies contributed to ZCCM-IH’s income which amounted to K1,026,866,172.
“Equinox made a payment of K814, 082,187 to ZCCM-IH, Konkola Copper Mines contributed  about K109 million, K52,488,292 was received from Kansanshi Mining and Chibuluma Mines contributed K40,791,695 and Copper Energy Corporation (CEC) paid K10,153,998,” the report states.
It was highlighted that the dividends were relatively unchanged during the period.
In the period under review, the windfall tax which was paid in arrears in 2011 amounted to K421 million.
The mining sector is a crucial part of Zambian economy, with direct contribution to Gross Domestic Product of approximately 9.5 per cent in 2011 and indirect contribution of about 50 per cent.