AGM Statement

ZCCM Invs.Hldgs PLC
04 December 2002




ZCCM Investments Holdings Plc
Incorporated in the Republic of Zambia




CHAIRMAN'S STATEMENT



I am  pleased to introduce the annual report and activities for ZCCM-IH covering
the year ended 30th June 2002. ZCCM-IH has played a pivotal role in supporting
Zambia's economic and social development following the privatization of the
mines. As Chairman of ZCCM-IH  since February of this year, I am confident that
the organization can build on its starting role in the privatisation era, and
meet the considerable and diverse challenges facing it.

The transformation from a mining company to an investments holding company has
been achieved very rapidly and successfully under difficult market conditions.
International commodity trade has drastically evolved over the last few years
and we as an investment holding company have contributed to the vision of each
one of our investments, bearing in mind the need for more innovative and
structured approaches to the issues of international trade. As a result of the
world mining industry over capacity during the year coupled with the slow
recovery of the global  economy and  commodity markets, the mining industry have
suffered from depressed prices and the consequent squeeze on margins.



The ZCCM -IH's key activities are environmental risk sensitization and
mitigation; maximization of wealth for the Company's shareholders through it's
participation in the stewardship of the privatized mines; assurance of the
implementation of the development agreements including local entrepreneur
capacity development and training of local labour. It is no exaggeration to say
that nearly everyone in the country benefits from ZCCM-IH's programs, directly
or indirectly. This report summarizes the activities of the Company undertaken
in 2002 and presents the audited accounts for the year.


I would like to highlight an important development that occurred in August 2002
that demonstrates the Company's role in ensuring Government's commitment to a
successful outcome to the privatization of the mines, the country's main
industrial base. Following the recent exit of Anglo American plc, the CDC
Capital Partners, and the International Finance Corporation, from the Konkola
Copper Mines plc (KCM), the Government of the Republic of Zambia resolved that
it would be more beneficial to the nation, and consistent with laid down social
and economic objectives, if KCM were to remain a private sector driven company
under new ownership, rather than undergo the alternative option of re-
nationalization. A framework to achieve this was agreed upon by all the parties
concerned, and has since been implemented. As part of this framework, ZCCM-IH
has increased its stake in KCM to 42%.

The rationale behind this move was also to facilitate a continuation of
operations pending the entry of a new strategic equity partner. Progress has so
far been made in the launch of a new Supported Employment Programme, recruitment
of replacements for Anglo American Corporation personnel who held key positions
and preparation of an Information Memorandum for prospective Equity Partners.




Overall, ZCCM-IH's services continued to focus on the following objectives:



  • Maximization of the economic and social value of the Government's stake in
    the mining industry;



  • Assisting in adherence to the various agreements;



  • Overseeing the mitigation and where possible eradication of past and
    present environmental degradation;



  • Promotion of the Zambian public's interests in the mining industry.



These four objectives remain very relevant in Zambia today and for the future.
However as the depressed global commodity market has beset the industry, issues
such as the balance between socio-economic and purely commercial objectives, and
the best way of achieving them, need to be continuously and rationally
evaluated. I believe this is an important time of adjustment for ZCCM-IH, which
as earlier stated recently increased its equity stake in a now near debt-free
KCM. We are immeasurably better off as a company and a nation for having
committed ourselves to this particular course of action as we have managed to
stave off serious financial problems,  that would  have beset the Company,
whilst prospecting for an equity partner.





The Company has continued to actively liaise and interact with the other mining
companies in which we hold equity.  The companies have to be commended for
successfully maintaining their respective operations  under difficult conditions
resulting from depressed metal prices obtaining during the period.





Environmental project work implementation continued mainly on the Copperbelt and
in Kabwe.

Amongst the notable projects undertaken during the year was the relocation and
resettlement of families in anticipation of an increase in the capacity of the
Lubengele Tailings Dam in Chililabombwe.  In total, seven hundred and fifty
people were relocated to improved dwelling facilities  in Kawama and Ming'omba. 
At the resettlement locations, families have been allotted land and basic
farming implements for the cultivation of both subsistence and saleable crops. 
The settlers participated in community initiatives such as the manufacture of
bricks used to construct houses in the resettlement areas.  This provided them
with additional income.  Other environmental work undertaken during the year
included the preparation of terms of reference to determine the extent of lead
contamination at Kabwe and maintenance works at the  South Downs Tailings
Complex in Kitwe.  Preparations for the Copperbelt Environmental Project,
including negotiations for credit facilities to fund the rehabilitation of the
various environmental liabilities inherited from the ZCCM, have reached an
advanced stage.




I must pay tribute to our Management Team who have done an outstanding job in
setting our direction and keeping both the investment holdings side of our
business and fully owned subsidiaries on track. This said, it is apparent that
the bottom line performance of the Company continues to be adversely afflicted
by significant exchange losses arising from Liabilities inherited from the
former mining company, ZCCM. The positive performance of our fully owned
subsidiaries relative to several similar businesses in the region  has been
gratifying and is a good testimony of the Team's commitment. I would also like
to take this opportunity to thank my predecessor Mr Shalaulwa L Shimukowa  and
the outgoing Directors, Mr James M Mtonga, Mr Albert M Kashimu, Hon Dan Kombe,
MP, Mr Boniface Nonde, Dr Abraham Mwenda and Ms Josephine Mapoma, for their
stewardship and unfailing commitment to the affairs of the Company. It was a
pleasure to welcome four new Directors to the Company Board, Mr David S
Diangamo, Mr Sylvester Mpishi, Dr Austin C J Sichinga and Mr Ernest Mutale.  My
thanks go to them and the rest of the Board for their contributions during the
year.



In a period of rapid and often difficult change, I am conscious of the pressures
faced by the employees of our group. As a Board, we recognize our responsibility
to manage transformation with care, in order to help people adjust to the
changing environment and ensure we have the right talent in place. Throughout
this on-going and dynamic period, our employees have continued to be committed
to the Company's welfare and I thank them all for their support.







George K Chibuye
Chairman  of the Board





Lusaka, Zambia
27 November 2002







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