ZCCM-IH public relations Loisa Mbatha Kakoma says Ndola Lime Company Limited (NLC) has in the last seven years been incurring losses and has a current debt stock K800 million.
And Kakoma has refuted claims that ZCCM-IH has sold off the struggling company due to its recurring losses.
In a statement, Kakoma said ZCCM-IH had over the past 10 years invested over K1 billion into Ndola Lime, but that the company still had not earned any profits.
“ZCCM-IH has over the past 10 years invested over K1 billion in Ndola Lime Company 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. In addition, the company has been reporting losses over the past seven years with a current debt stock standing at approximately K800 million. ZCCM-IH remains committed to the affairs of NLC and will continued 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,” Kakoma stated.
And she refuted claims that ZCCM-IH has disposed of the company.
“ZCCM Investments Holdings Plc would like to dismiss and refute claims circulating on social media that Ndola Lime Company Limited (NLC) is being sold by ZCCM-IH. These claims are unfounded and false. 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. By order of the Court dated 5th October, 2018, the Official Receiver was appointed as Interim Business Rescue Administrator of NLC. ZCCM-IH is seeking legal redress regarding the aforementioned proceedings,” stated Kakoma.