Zambia's State-owned mineral and energy investment holding company ZCCM Investment Holdings (ZCCM-IH) has entered into a joint venture (JV) with the Wonderful Group of Companies to develop and operate an integrated lime and cement production facility.

The two companies will invest $30-million in the JV vehicle, Ndola Lime, in which ZCCM-IH will hold a 45% interest and Wonderful Group the balance.

The parties state that the transaction restores production at one of the Copperbelt's longest-standing industrial operations. Limestone Resources and its predecessor Ndola Lime Company have produced lime in Ndola since 1931, supplying critical inputs to Zambia's copper, construction and agricultural sectors.

Operational difficulties resulted in the insolvency of the plant owner in 2018.

The new partnership is structured to install new state-of-the-art plant and technology, restore reliable production at industrial scale and re-anchor lime supply on the Copperbelt. This will support Zambia's mining industry and the wider revival of industrial activity in Ndola, ZCCM-IH says.

The JV partners intend to re-establish operations over three phases, with the first phase to entail construction and commissioning of a lime production plant with a capacity of 600 t/d.

Phase 2, to be completed within 12 months of Phase 1, will deliver either a cement processing plant or a second lime production plant, while Phase 3 will follow with further expansion based on market conditions.

"This partnership brings a 95-year-old Copperbelt institution into its next chapter as a modern, sustainable industrial operation. It is a clear example of our active portfolio management strategy in practice.

"We are bringing in a capable operating partner to deliver investment, technology and scale. The revived facility will support the industrial renewal of Ndola and generate value for our shareholders,” comments ZCCM-IH CEO Kakenenwa Muyangwa.

"We are pleased to partner with ZCCM-IH on this strategically significant investment. Restoring lime production at industrial scale is essential to Zambia’s continued economic growth. The integrated lime and cement facility reflects our long-term commitment to the country's industrial development," adds Wonderful Group CEO Huang Yaochi.