Chairman's Statement

ZCCM Invs.Hldgs PLC
30 December 2003


ZCCM INVESTMENTS HOLDINGS PLC
Incorporated in the Republic of Zambia

CHAIRMAN'S STATEMENT

It is my pleasure to introduce the third consecutive annual report of ZCCM
Investments Holdings Plc for the 12 month period to June 2003.

The year ended 30 June 2003 proved to be challenging for commodity markets as
continued economic uncertainty around the globe and the long-term effects of
September 11 2001 greatly influenced consumer and investor behaviour. Towards
the second half of the year from January to June 2003, improvements in copper
prices were recorded on the London Metal Exchange and other major exchanges,
mainly as a result of a tight supply situation in global markets attributed to
increased demand from China.

At home, operating mine units maintained their drive to lower costs below
selling prices and in this regard recorded varying degrees of success.

The privatisation transaction agreement between Kansanshi Mines plc and the
Company was concluded. This milestone was necessary for the commencement of the
open pit mining project scheduled for operations in 2005. Subsequent to year
end, following the public tender process, the Zambia Electricity Supply
Corporation was awarded the contract to build the power line to feed the open
pit mine.

During the third quarter, the Government of the Republic of Zambia announced
that Sterlite Industries Limited of India had been awarded preferred bidder
status, as a prospective equity partner in the Konkola Copper Mines plc. During
the same period, Government also announced the commencement of negotiations with
J & W Holding AG of Switzerland, over the prospective sale and revitalisation of
the Roan Antelope Mine Corporation (In Receivership). Whilst focused on the core
function of portfolio value enhancement, the Company has alongside Government
been disposed to the achievement of equitable terms by which the entry of new
strategic equity partners shall be entertained.

The Chibuluma South Mine project got underway following the signing of the
shareholders agreement between the International Development Corporation (IDC)
of South Africa and Chibuluma Mines plc (in which the Company holds a 15 percent
stake). The agreement calls for a financial contribution by IDC, to be
equivalent to a 35 percent equity stake in Chibuluma South Mine Limited.
Chibuluma Mines plc shall hold the balance of 65 percent of shares.

In line with the Government's objective to mitigate the existence of mining
pollutants from the past, present and future, the Company recently concluded
negotiations with the World Bank for a credit facility of US $40 million, of
which US $21 million shall be provided as a grant under the World Bank
Development Financing Agreement. In addition to this, the Nordic Development
Fund has pledged a further 10 million Euros towards the Copperbelt Environmental
Project. It is worth noting that whilst beneficial to the environment, the
utilisation of the aforementioned funds shall be on none financial return
activities, hence the Company's emphasis on securing grant funding as opposed to
loan financing to enable the execution of environmental objectives.

The difficult circumstances experienced by the local mining industry due to
depressed metal prices resulted in unprofitable operations during the period
under review. However despite the adverse conditions prevailing in the industry,
the Company received a dividend of K25,700 million from one of our associate
companies, Copperbelt Energy Corporation plc.

During the year, the Zambia Privatisation Agency (ZPA) announced that a
strategic equity partner was to be sought to take a 30 per cent stake in Ndola
Lime Company Limited, a 100 percent subsidiary of ZCCM-IH Plc. Ndola Lime is a
producer of quality lime products and supplies to domestic and regional mine
operators and construction companies.

The Company's other subsidiary, AHC - Mining Municipal Services (AHC-MMS) has
continued to build upon past achievements in the area of water reticulation and
effluent disposal. Completion of the central Analytical Laboratory was another
milestone for AHC-MMS. The latter is expected to improve the accuracy of sample
testing and enhance revenue generation. The company also recently embarked on an
HIV/AIDS workplace programme, launched in November 2003.

During the year, the composition of Board Members changed following the
redeployment and cessation of contracts of staff in various agencies with
representation on our Board. Dr A Mwenda, formerly of the Bank of Zambia, left
to join the World Bank and has since been replaced by Dr D H Kalyalya.
Subsequent to year end, representatives of the Ministries of Finance and
National Planning, Mines and Minerals Development, and Energy and Water
Development, Messrs D S Diangamo, S Mpishi and Dr A C J Sichinga, were withdrawn
and replaced by Dr S Musokotwane, Dr M W Lewanika and Mr G P Mukala,
respectively.

On behalf of the Board, I wish to bid farewell to our outgoing Directors,
welcome the new Directors and look forward to their positive contributions in
relation to the challenges that lie ahead.

ZCCM-IH's corporate culture has been essential to the Company's respectable list
of achievements, more often than not accomplished under very trying
circumstances. I would therefore be remiss not to acknowledge the hard work,
flexible and innovative thinking of the Company's staff, and do hereby applaud
all their efforts during the year.

Ahead of us, the global economic climate seems likely to experience some
recovery in 2004, mainly on the back of robust economic growth in China and
marginal growth elsewhere. However, due to the need to reinvest in operations
and further reduce production costs, it is probable that the majority of
associate companies may not be in a position to declare a dividend in the coming
year, even under the assumption of stable premium metal selling prices.

                                     - 2 -
I am pleased to report that the Company recently adopted the Code of Corporate
Governance for Boards of Directors in Zambia which is largely derived from the
guidelines developed by the Commonwealth Association of Corporate Governance.
This code will regulate the conduct of business in the Company in order to
enhance transparency and accountability.
Finally, I wish to comment on the continued burden of historical liabilities
that have resulted in foreign exchange transaction losses, and apparent
relegation of the Company's true commercial worth and potential. As Shareholders
would be aware, the Company's present indebtedness and hence exchange losses
mainly arise from the location of extensive debt, incurred to facilitate
privatisation of the industry, in the Company's books. In addition to good
sustainable performance of associated companies, it is necessary that the
company achieves resolution of its debt portfolio in order to perform
effectively as an investment company.



George K Chibuye
Chairman of the Board

Lusaka, Zambia
29 December 2003


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