ZCCM Investments Holdings has entered into a joint venture through its subsidiary Consolidated Gold Company Zambia, with Array Metals, a global mining firm to process gold ore in Mumbwa, west of Lusaka.
An initial investment of approximately 2.5 million Kwacha will be pumped in the first stage of the project and will go towards the setting up of a gold wash plant and other mining machinery to mine and process placer gold raw material.
In the agreement, CGCZ will hold a 65 percent stake and Array Metals Zambia 35 in the project with the initial phase targeted gold production of about 3-tonnes, worth about 150 million United States Dollars at current prevailing market prices.
Speaking after signing the agreement, Array Metals Group Vice President Chris Rugari said the overall targeted gold production is 7500 hundred kgs from the resource, estimated to be worth 400 million dollars at the current prevailing market pr
He however said the agreement with CGCZ will first process part of the resource and later ramp up production and processing.
And ZCCM-IH Chief Executive Officer Mabvuto Chipata said the strategic drive to harness the gold potential as mandated by Government from areas with recorded gold occurrences in the country is aimed at contributing to the 40 tonne target, which can only be
chieved through such partnerships.
And, CGCZ Chief Executive Officer Faisal Keer said the firm is partnering with various small-scale gold miners in the country by providing mining technical expertise, access to earth moving machinery and gold processing lines to kick-start and boost their gold production.
Mr. Keer said the mining and processing operations in the Mumbwa project is earmarked to start by mid-June 2020, once all statutory and regulatory approvals are obtained.