• Approval was given at the Shareholder’s Extraordinary General Meeting held in Kitwe.
• The completion of the Royalty Transaction follows extended discussions over the past three years between FQM and ZCCM-IH.
• Royalty revenue will be paid on a quarterly basis over the entire life of the mine.

ZCCM Investments Holdings Plc (ZCCM-IH) it will now receive 3.1% of Kansanshi Mining Plc’s total revenue from sales of Copper, Gold, and all other metal products following shareholders’ approval of the mine’s royalty conversion.
According to ZCCM-IH Corporate Affairs Manager Loisa Mbatha, the royalty revenue will be paid on a quarterly basis over the entire life of the mine that currently extends to 2045.
Ms. Mbatha said the approval was given at the Shareholder’s Extraordinary General Meeting held in Kitwe on 31st March 2023 and the royalty income stream replaces the former model of unpredictable and unguaranteed dividend pay-outs.
She added that the completion of the Royalty Transaction follows extended discussions over the past three years between First Quantum Minerals (FQM) and ZCCM-IH.
And Board Chairperson Dolika Banda stated that this will result in a healthier cash flow for ZCCM-IH which will in turn make it easier for the Company to raise financing to pursue its ambitious investment strategy throughout the mining value chain from exploration, through to value addition.
“The royalty arrangement will give us consistent and stable income, and fundamentally will change the financial health of ZCCM-IH by so doing. Our ambition is to make investments throughout the mining value chain from exploration, through to value addition so that we may help to create national economic success stories for the benefit of all Zambians and for our shareholders, value creation and a return on their investment,” Ms. Banda stated.
Ms. Banda added that ZCCM-IH will continue to hold 20% of the shares in Kansanshi Mining Plc, retain 2 out of 10 board seats, and continue to participate in the governance of the mine, while having full visibility of the operations.
“A comparison of actual dividends received from Kansanshi since 2009 with estimates for future royalty rates shows that not only will overall revenue be far greater under the royalty model, but the revenue flow is also more predictable and consistent.”
“In addition, a royalty will see ZCCM-IH benefit from future high copper prices, in the likely event of a price recovery from recent market turmoil. It also affords protection from the worst of any future price slump as it is paid on production, not profitability. If Kansanshi is in production and earning revenues, a royalty will be paid, even if the mine is then producing at a loss,” she said.
A royalty is charged as a percentage of the amount of minerals produced and sold over a specified period, at the market price and it is paid irrespective of profitability.