ZCCM-IH Chief Executive Officer, Kakenenwa Muyangwa, has described the joint venture with Mining Mineral Resources to develop mining resources in North Western Province’s Mufumbwe District as a significant step to formalising the gold sector.
Mr Muyangwa says the state-owned firm is taking a controlling position in a project with strong geological potential, alongside an experienced operating partner.
He said the structure formalises artisanal mining at the project site and builds local refining capacity in Zambia.
The Chief Executive Officer assured stakeholders that the move represents the disciplined diversification expected from the institution.
“Kikonge is a meaningful step in broadening ZCCM-IH’s diversified minerals portfolio and represents tangible progress in delivering on our mandate to formalise and develop Zambia’s gold sector,” Mr Muyangwa said in statement.
On Monday, ZCCM-IH announced the formation of a joint venture with Mining Mineral Resources to explore and mine gold in Kikonge area in Mufumbwe, in a move that will help the country in its quest to diversify the mining sector.
According to a statement obtained by ZANIS, ZCCM-IH Corporate Affairs Manager Loisa Mbatha said Kyalo Goldfields Limited (KGL) was incorporated on May 6 to explore, develop and mine gold resources in the Kikonge Mining Area in Mufumbwe District in North Western Province.
Ms Mbatha further revealed that KGL will support the formalisation of artisanal and small-scale mining activities in the area to ensure the safe and regulated production of gold.
She said the firm will also develop processing capabilities to enhance value retention within Zambia.
“ZCCM-IH will hold a 51% stake in KGL, with Mining Mineral Resources, which mines and processes tin, tantalum and tungsten in the Democratic Republic of Congo, holding the remainder,” She said.
Ms Mbatha noted that KGL’s operations will initially be funded through shareholder contributions, with additional structures considered as it advances adding that it was preparing the detailed project scope and budget for the proposed project.
