ZCCM Investments Holdings Plc has dismiss and refutes claims circulating on social media that Ndola Lime Company Limited is being sold by ZCCM-IH.
The company says these claims are unfounded and false.
ZCCM Investments Holdings Plc Public Relations Manager Loisa Mbatha tells Money FM News in a statement that the position is that two former NLC employees applied to Court to place the company under supervision pursuant to the Corporate Insolvency Act No. 9 of 2017.
Ms Mbatha says by order of the Court dated 5th October 2018, the Official Receiver was appointed as Interim Business Rescue Administrator of NLC.
She explains that ZCCM-IH is seeking legal redress regarding the aforementioned proceedings.
She further states that ZCCM-IH has over the past 10 years invested over K1 billion in NLC in form of debt and equity in an effort to turnaround the loss-making operations of the Company into profitability.
“However, NLC has faced several challenges among these being technical, financial, market and human resource issues. The plant has been unable to produce to nameplate capacity because of failure to fully commission and optimise the new coal fired vertical kiln (“VK2”) due to technical factors,” she said.
Ms Mbatha adds that the company has been reporting losses over the past seven years with a current debt stock standing at approximately K800 million.
She says ZCCM-IH remains committed to the affairs of NLC and will continue to pursue all activities that better the Company and ZCCM-IH’s investment.
“Part of this includes the consideration of engaging technical staff from NLC to work in the ZCCM-IH new Cement Plant in Masaiti, as the technical processes and operations are similar,” she added.