August 2007


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By Stephanie McCrummen

Washington Post Foreign Service

Easy Steps For Zambians Abroad To Invest in LuSE

NAIROBI — One ordinary afternoon in a bright, marble-floored lobby downtown here, the following conversation took place between two women, a government worker and a self-employed soapmaker.

“I bought KenGen at 9.90 shillings,” said the government worker, Josephine Nduta, referring to her stake in the initial public offering of Kenya‘s power company last year. “I sold them at 28 — I made a lot of money!”

Traders conduct transactions at computers on the floor of the Nairobi Stock Exchange. Until 2005, the exchange traded stocks using a paper system.

Traders conduct transactions at computers on the floor of the Nairobi Stock Exchange. Until 2005, the exchange traded stocks using a paper system. (By Stephanie Mccrummen — The Washington Post)

 

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“I also made money on that,” said Mary Kariuki, the soapmaker, recalling how she used the $1,000 to pay her children’s school fees. “I bought 3,300 shares.”

The two women carried on about liquidity and profit margins, and recalled with pride attending the first shareholder meeting of KenGen this year, an event so huge that it had to be held in the city’s largest soccer stadium. About 200,000 people from all corners of the country came like so many newly minted executives.

“I felt so good,” Kariuki recalled. “It was just normal, common people. People dressed well. What impressed me was the number of old women — they were coming in their traditional clothes. They were telling me, ‘Yes, we bought!’ ”

Stock market fever is sweeping Kenya and other sub-Saharan African countries such as Tanzania, Uganda, Nigeria and Zambia, where stock exchanges, along with national economies, have shown steady gains in recent years as people who have traditionally invested in cows or land are learning to trust in the abstraction of corporate shares.

Perhaps nowhere has the idea caught fire more quickly than in Kenya. With investment banks conducting education campaigns in rural areas and daily newspapers thick with personal finance sections, the Nairobi Stock Exchange has transformed in recent years from a rich man’s club into a computerized, mass-appeal institution.

Since 2002, the number of investors has risen from 50,000 to more than 750,000, according to stock exchange executives, with much of that growth coming from rural areas. The exchange’s total value has jumped from $1 billion to $12 billion, amounts that are predicted to swell again following the biggest initial public offering in Kenyan history.

Cellphone giant Safaricom, expected to go public later this year, has attracted such foreign investment banks as Goldman Sachs to Nairobi for the first time, offering their services, and analysts expect that as many as 3 million individual investors in this country of nearly 36 million will participate.

“People are coming on a daily basis just to see what it’s about,” said Chris Mwebesa, 36, chief executive of the Nairobi exchange. “We’re seeing more rural folks coming to the market, working professionals, retirees, farmers, young people, even students.”

The boom has its skeptics, especially in a country with a history of entrenched corruption. And while people such as Nduta have made money on the whole — she is using some of it to electrify her house — she is also aware of the risk of losing big. Even so, the boom underscores a feature of life in Africa that often gets lost amid more prevalent images of a continent in perpetual collapse: dogged optimism.

A recent opinion poll by the Pew Global Attitudes Project found that people surveyed in 10 African nations were on the whole optimistic about the future. In Kenya, 78 percent of those surveyed said life was getting better, even though a majority also reported that there were times in the past year they did not have enough money for food.

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/25/AR2007082501291.html?sub=AR

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Due to popular demand we are reposting – Zambia Leads The World …

Zambian International Adoption

The Zambian Enterprise leads the world with the least expensive as well as fastest adoption programs currently available. In fact, the International Adoption Agency lists Zambia on behalf of the whole continent as br-01-2.jpgthe best place for adoption.

This is actually a great blessing in disguise as local entrepreneurs could engage in a little more charity enterprising by providing philanthropic shelter as they work with this agency in preparing adoptions thereby alleviating prevalent the street kids quandary.

The American families are in a hurry to adopt but in most countries the legal framework is not only cost prohibitive but also laborious dragging on for years, in some cases. Zambia is the first African country under the auspices of the International Adoption Agency to be open for both married and single adopting parents in the US; Homeland Security (INS) approved families could be traveling as early as this summer (2007) … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.

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Due to popular demand we are reposting The Hidden Secrets Of Lumwana post …

classy-daddy-3.gifLumwana comes with a lot of serious hidden secrets … despite having been discovered over 70 years ago, it was not fully developed. But why?? Because at the time of discovery, it was learnt that its ore’s copper content was lower than the best grade available in other regions such as those on the Copperbelt.

Initial metallurgical studies were mainly focused just on copper and no other mineral contents were premeditated. The Ministry of Mines carried other tests with the help of students from the School of Mines at UNZA in the late 80’s and new discoveries were found … it was this group that issued new metallurgical maps for Zambia showing new mineral reserves around the nation.

The study showed that Lumwana is a multi-element deposit with significant gold, cobalt and uranium grades distributed throughout the deposit but the government was too broke to pursue the project due to the ongoing Structural Adjustment Program (SAP) imposed by the World Bank and International Monetary Fund at the time.

So, what we have at Lumwana is a total hidden package with just as much copper, as much gold, as much cobalt, and as much uranium – this has been the serious hidden secret of the hidden treasures that lie under the soils of Lumwana making it the world’s largest undeveloped deposits with a 321Mt ore reserve grading at 0.73% Cu and 0.093% U308.

This means that once commissioning is completed in mid-2008, Lumwana will be well on its way to becoming the largest copper, gold, cobalt and uranium producing mine in Africa. As we unearth for copper, we would have the benefit of doing the same for gold, cobalt and uranium.

This excavation process provides for maximum utility as the economies of scales are exploited to the fullest extent because we would dig for the price of one but sell for the price of four. As we yank out one stone from the ground, we produce four products from it … it can’t get any better than that!!!

If my memory serves me right, Equinox holds mineral rights for copper and uranium but they should be allowed to extend those to gold and cobalt that way the ore’s extraction may yield the largest benefit. These secretly hidden treasures at Lumwana have the capacity to attrack over a billion dollars ($1 billion) in Foreign Direct Investment (FDI) for the Zambian Enterprise … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.

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The Zambian Enterprise is not only the largest producer of copper in Africa; it also has a perfect track record to enable it to vie for a “World Class Credit” rating.

Usually referred to as “first credit” in economic terms, the rating would enable Zambia to issue international bonds and enter the elite class with incentives similar to those in developed nations.

Should this take place, Zambia whose economy currently accounts for only 1 percent of Sub-Saharan Africa’s $544 billion economy, would be the third country on the continent to issue such bonds.

“… if we went for a rating, we’d be able to issue a euro-kwacha bond for example … the country will probably seek its debut rating “shortly,” … there has never been a better time than this … with a buoyant economy and a good track record, I think it’s about the right time to subject ourselves to a rating,”… said the Manchester educated and one time professor of economics at the University of Zambia now Bank of Zambia Governor – Dr. Caleb Fundanga without being date specific.

The European Investment Bank, the finance arm of the European Union, in December 2006 sold 500 million pula of senior unsecured bonds, with settlement and payment in euros, the first-ever international issue in Botswana’s currency, according to Standard & Poor’s Ratings Services.

South Africa, the continent’s largest economy and Botswana, the nation with the highest rated debt in the continent, are the only southern African nations with foreign currency denominated bonds.

Zambia has a lot of support and may need to fully capitalize on that support if reality has to come. Out-going World Bank country manager was one of Zambia’s strongest advocates to the same.

“… Zambia is clearly one of the countries where the impact of debt relief has been massive and could be very clear,” Ohene Nyanin, the former World Bank’s country manager based in Lusaka, said in an interview. “It is a very big fiscal space that has been opened up.”’

The country’s inflation rate dropped to single digits for the first time in 30 years in April 2006 as the government moved to control spending. Zambia has also benefited from a fivefold rise in the price of copper, which accounts for 53% of the enterprise’s income.

International bonds are a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date and have the ability to increase cash inflows at an accelerated rate thereby increasing a country’s liquidity.

classy-daddy-3.gifTwo to three years ago, I introduced a bond phenomenon on Zambia Online and even suggested the issuance of bonds as a debt instrument necessary for capitalizing the New Zambia Airways as a private enterprise.

It was to be privately driven and ran; some nay sayers rose up to short the idea down but yet even today more experts are vying for a bond rating that would elevate the country’s standing as well as help grow our economy above 7% come next year.

It is highly feasible that some critics were new to the subject and saw no benefit to the Zambian Franchise at all … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.

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JUNIOR MINING

FEASIBILITY STUDY IN 6 MONTHS

Mokambo copper development

moving forward

Canadian junior miner ICS Copper Systems says about US $50 million will be needed to bring its Mokambo copper mine project in Zambia to production.

Author: Ronald Mwila
Posted:  Monday , 27 Aug 2007
Ndola – 

About two months since Mineweb reported that TSX Venture Exchange-listed junior miner ICS Copper Systems Limited was advancing exploration around the Mokambo area in Zambia, the company has indicated that it is seeking US $50 million for the project.

Mokambo lies close to the prolific mining town of Mufulira on the Zambian Copperbelt, about 16 kilometres north of Mopani Copper Mines (MCM) Plc’s Mufulira underground mine. The area was last explored during the 1970s and probably due to lack of sufficient and up to date data, Mokambo – which boasts a historical resource that suggests 22 million tonnes of sulphide ore with grades of 1.45% to 1.72% of copper – drew little interest from the big investors that snapped up pieces of Zambia’s mining industry during its privatisation.

Enter ICS Copper Systems and Mokambo is headed for change. In June this year, ICS chief executive officer Graham Chisholm told Mineweb that should all things fall in place, plant construction at Mokambo could start by May 2008 year with first production anticipated by the end of 2008.

And there appears to be no relenting on this drive, with the company’s project manager at Mokambo John Mutambo saying at least US $50 million would be needed to develop and bring the mine to production.

ICS has already raised about US $10 million to fund the ongoing drilling at Mokambo, where 16 holes out of a planned 136 holes have already been completed, Mutambo told journalists in Mufulira.

He said the ongoing drilling exercise would help determine the best method of extracting the copper at the project and that after six months, ICS would commission a feasibility study at Mokambo.

 “We know that there is a lot of copper at the mine and we want to establish the kind of mining technology that will be embarked on,” Mutambo said.

The Mokambo project is a joint venture with North Western Plant Hire Limited, a Zambian company holding a 30% interest but ICS has the option to increase its stake to 80%.

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euwesim06.jpg
The delighted GM-elect receiving his first prize in Arnem [Photo Ben Schulte]

Amon Simutowe of Zambia who recently acquired a Bachelors degree from the University of Texas in Dallas – USA is the world’s newest Grand Master for the game of Chess. The event was being held in the Dutch four-star NH Rijnhotel, on the banks of the river Rhine in the town of Arnhem, which is famous for the John Frost Bridge, the site of inspiration for the book and film ‘A Bridge Too Far’ and the 1944 “Battle of Arnhem”.

euwesim02.jpg
In the lobby of the Rijnhotel there is a big exhibition of Dutch Chess Art

Perhaps the brightest star to rise on the African horizon in a long time Amon who was born on January 6, 1982 in Ndola, Zambia, has burst on the chess blazing a trail of tournament successes unprecedented for a player from the African continent. Having won his first tournament at 12, he went on to win the Zambian championship at age 14.

Final standings

euwesim051.gif

Ziska,H (2392) – Simutowe,A (2421) [B15]
Euwe Stimulans Arnhem NED (8), 25.08.2007
1.e4 c6 2.d4 d5 3.f3 g6 4.Nc3 Bg7 5.Be3 Qb6 6.Qd2 Qxb2 7.Rb1 Qa3 8.exd5 Nf6 9.dxc6 bxc6 10.Bc4 0-0 11.Nge2 Ba6 12.Rb3 Qa5 13.Bxa6 Qxa6 14.0-0 Rd8 15.Ne4 Nbd7 16.N2c3 Qc4 17.Qe2 Nb6 18.Nd2 Qxe2 19.Nxe2 Nfd5 20.Bf2 Nc7 21.Ne4 Ne6 22.Rd3 Nd5 23.Rfd1 Nb4 24.Rc3 Rac8 25.a3 Nd5 26.Rcd3 Rb8 27.Rb3 Ndf4 28.Nxf4 Nxf4 29.Nc5 Rxb3 30.Nxb3 e5 31.Na5 exd4 32.Nxc6 Rd7 33.Kf1 Ne6 34.c3 d3 35.Nb4 d2 36.c4

According to news reports from Arnhem, the 25 year old Amon actually completed his final GM norm with a round to spare, after a dramatic eigth-round encounter with IM Helgi Dam Ziska of the Faroe Islands. Simutowe had 6.5/7 needed just a draw to fulfil the norm, having won all his games but one in the previous rounds.

We at the Zambian Chronicle would like to take this opportunity to congratulate Amon for his great accomplishments and much for making the Zambian Enterprise proud … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.     

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Zambia gold property nears

development decision

TSX-V listed junior, Luiri Gold appears that it may be near to making a go-ahead decision on the Luiri Hills project in Zambia where it is exploring ground close to the old Dunrobin and Matala gold mines.

Author: Ronald Mwila

NDOLA, ZAMBIA – 

Just about four years after registering an exploration company in Zambia, TSX Venture exchange-listed Luiri Gold Limited (LGL-V) appears to be inching closer to developing a gold mine in the country’s Central Province.

Luiri Gold’s Zambian operation, Luiri Gold Mines (Zambia) Limited, holds two prospecting licences – PLLS 173 and PLLS 209 – and a mining licence LML 48, all covering a 2,400 square kilometre tenement around the historically worked Dunrobin and Matala gold mines. The area, dubbed the Luiri Hill Project, lies about 120 km west-northwest of Zambia’s capital Lusaka in Mumbwa district.

The company has recently announced a number of positive intersections across its tenements, which have made local mining experts including professor Stephen Simukanga, a regionally respected environmental geology expert, to suggest that developing a mine seemes likely.

This view is supported by Snowden Consultants, who recently indicated a strong possibility of defining large deposits that can justify the establishment of a mine. The report notes in part: “the Luiri Hill Project appears to have both short term and longer term gold exploration potential. In the short tem, there is strong potential to expand the resources at Dunrobin, Matala and possibly Chosa…to attempt to define large, relatively low grade deposits that justify establishing a full mining operation.”

A local mining expert who has been close to the project said Luiri Gold’s recent capital raising drives seem to favour the possibility of developing a mine in the area.

In April this year, for instance, Luiri Gold engaged Strata Capital UK LLP to raise C$4 million via a private placement to further work at the Luiri Hill project.

But when contacted, Luiri Gold chief executive officer Mike Sperinck neither confirmed nor denied the possibility of developing a mine at the project, which currently  has an indicated  resource estimate of 108,000 ounces of gold in 1.62 million tonnes of ore grading 2.1g/t and an inferred resource of 173,000 ounces of gold in 1.3 million tonnes grading 4.1g/t. And results from reverse circulation and diamond drilling undertaken in March this year have returned intersctions of up to 12.7g/t, which should be a boost for Luiri Gold.

“We should be issuing a Press Release in the next two weeks which should answer some of your queries on the way forward at Luiri Hills.  As some of it could be deemed to be material, I would ask for your patience, and I will respond at that time,” Sperinck told Mineweb.

But he confirmed that RSG Global, the exploration manager at Luiri Hills, is currently preparing a new resource estimate for Dunrobin and Matala.

http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=23174&sn=Detail

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