Zambia’s leading investment group by assets and shareholding, ZCCM IH has announced the setting up of a gold company that will see the group participate in the countries gold value chain, according to a statement issued by the company.
“In line with one of its strategic objectives in mining, ZCCM Investments Holdings Plc (‘ZCCM-IH’) wishes to announce the incorporation of ZCCM Gold Company Limited (ZCCM Gold)”, read a statement issued on 14th January 2019 by Company Secretary, Chabby Chabala on the same day that the Board Chairman, Eric Silwamba hosted shareholders of the company at their Annual General Meeting at Southern Sun Hotel.
The ink of the creation of the company had barely dried when the AGM took place, four days after the incorporation of the company. “ZCCM Gold was incorporated on 10 January 2020”.
This announcement follows an earlier announcement at the end of 2019 when the group partnered with Karma Mining for the sole purpose of processing gold. “On 23 December 2019, the Board of Directors of ZCCM-IH approved the proposal to enter into a Joint Venture (JV) partnership with Karma Mining Services and Rural Development Company (“Karma”)”, read a statement issued by the group’s Company Secretary, Chabby Chabala on Friday 27th December 2019 and issued on SENS.
The establishment of this new company clearly elaborates the strategic intent that now seeks the investment group focus, through partnerships, on a sector that has hardly been exploited in Zambia. “ZCCM Gold will spearhead and manage gold mining activities in Zambia”.
With activities will include but not limited to gold exploration, mining, processing, marketing and value addition, it is important that the gold mining story has an ultimate benefit for its shareholders. In a model that is similar to how the Botswana Government participates in mining, ZCCM Gold will be owned 51% by ZCCM-IH and 49% by the Government of the Republic of Zambia through the Minister of Finance.
The Eric Silwamba lead Board is upbeat about this golden venture. “The ZCCM-IH Board is confident that ZCCM Gold will add value to the Company’s current mining portfolio, provide an opportunity for ZCCM-IH to expand its activities in the mining sector and contribute to the National Treasury”.
Source: Finaincial Insight Zambia