By BUUMBA CHIMBULU
UNIVERSAL Mining and Chemical Industries Limited (UMCIL) is scouting for an equity partner to buy up to 25 percent shares in its US$200 million Kafue Steel plant.
This is after the National Pensions Scheme (NAPSA) and the Industrial Development Corporation (IDC) turned down offers from the company for shares, citing the business not being lucrative.
The Zambia Development Agency (ZDA) has however regretted the decision by the two institutions not to buy shares in the company following its profitability.
UMCIL Executive Technical Director, Julius Kaoma, said the company had approached NAPSA and IDC to offer them shares of between 20 to 25 percent.
Dr Kaoma told officials from ZDA who toured the plant in Kafue that the two institutions however turned down the offers citing that the business was not lucrative.
“We approached NAPSA and they turned down our approach. We want to sale them equity in our setup. We wanted to sale them 20 to 25 percent. Now it fell through, they do not have the vision like us.
“We recently approached IDC, they did their homework and refused saying it is not lucrative, it is not beneficial to us [IDC]. They turned it down. This is not the first time, even the banks turned down our offer,” he said.
Dr Kaoma wondered how the business was surviving if it was not lucrative as cited by other institutions.
In response, ZDA Board Chairperson, David Masupa, who led his members and management regretted the decision by NAPSA and IDC.
Bishop Masupa was however impressed with backward integration and initiatives put in place to start project.
“We regret NAPSA turning down as well as IDC. We are proud of you that so far you have shown your greatness in production of iron and steel in Southern Africa which industry everybody would want to have.
“You need the support of the Government. I personally I am very happy that you are going strong,” he said.
And ZDA vice Board Chairperson, Chisoma Lombe, wondered how NAPSA and IDC could turn down the offers when Zambia was importing steel worth US$240 million per annum per mine.
“I am wondering how NAPSA and IDC can turn it down by not being lucrative when we actually importing steel worth US$240 million per annum per mine and from the study that we have done, there is also US$60 million in terms of nuts and bolts and in terms of chemicals
“So there is US$3.5 billion every year of products that we import. So how can anybody talk about it not being lucrative when it is a priority that we need,” she asked.
Dr Lombe however encouraged the company to list on the Lusaka stock exchange.
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