THE ZCCM-IH says the slowness to formalise the mining of gold in Zambia is due to a combination of factors.

ZCCM-IH chief executive officer Mabvuto Chipata says the amount of gold deposits at Kasenseli in Mwinilunga district will only be known once exploration works are complete, in the next three months.

He said the mandate of the ZCCM-IH in the gold sub-sector, as given to it by the Bank of Zambia, was to harness the entire gold sub-sector in the country.

“Harnessing means that we should work with everyone within the mining sector to help them explore, to help them [to] mine, to market and to help them process. Ultimately for us to be able to have gold reserves in the Bank of Zambia,” Chipata said on ZNBC TV’s Sunday Interview programme. “So, our mandate is very wide on the entire value chain. We have to work with everybody within the sector to develop and formalise this sector.”

He explained that gold had been in Zambia for many years and that traditionally, “this has been mined by artisanal miners and even informal miners – instead of the word illegal miners.”

“Essentially, in every place where the [gold] occurrence is there, you have had our people using traditional methods to mine gold and usually this is alluvial gold which is found on river beds. You get on the river bed and you get some soil, pan and you get some gold or you get some soil and using traditional methods you smelt that and get some gold,” he noted. “So, it (gold) has been around in this country for many years, it’s just that it has not been formalised.”

Asked by the programme host, Grevazio Zulu, why there was slowness to formalise the mining of gold in Zambia, Chipata said; “it’s a combination of factors.”

“A lot of Zambians who have got exploration licences in these places have had challenges to start exploration. As you are aware, exploration means that you sink in money in the ground to find out how much material is on the ground. For lack of financing, a lot of areas in Zambia are not exploited,” Chipata explained. “So, a lot of Zambians out there, as you saw from the statement from the PS (mines permanent secretary Barnaby Mulenga), do have gold licences. But for lack of funding, they have not been able to explore, and also lack of equipment to be able to do exploration. This is why this move that we are taking to formalise this sector is targeted at making sure that we can start helping our people to explore and determine the quantity of gold and then determine how much you need in order to start up a mine.”

He said Kansanshi Mine in Solwezi was the only one, as at now, that formally reports gold in the country.

Chipata pointed out that the moment the ZCCM-IH was given the mandate on gold mining, “we studied the whole gold sub-sector in Zambia.”

“We went to 21 areas to see what is happening on the ground. We immediately got a gold trading licence to enable us to buy gold from anyone who has gold and recently you have seen us advertising that anyone with gold in Zambia, let them come to ZCCM-IH and sell their gold,” he said. “What has been currently happening there is that our people on the ground, the artisanal miners, anyone goes there and offers them prices that are below market. [But] our prices are linked to the London market – we are able to offer them a better price so that they can get better value for the work they are doing.”

Chipata added that as a first step, the ZCCM-IH had targeted Kasenseli area, insofar gold mining.

“We now have got an exploration licence in Kasenseli. As we speak, drilling works have started in order to ascertain how much gold is in Kasenseli. The second step is that we have already invested in processing. So, we are in a hurry to develop this sector so that the country can begin to earn the required value from this sector,” he noted.

Asked whether or not Zambia’s biggest gold deposit was at Kasenseli, Chipata said such could only be determined once the exploration programme was complete.

“The exploration programme will take about three months. It started already about three weeks ago. After three months we’ll be able to know how much deposit is in Kasenseli and we’ll be able to inform the public,” he said.

On whether he agreed or not that gold could enable the country to pay back its loans, Chipata said such was possible.

“I agree, to the extent that, for example, our target for this year is that if we can get 40 tonnes of gold in this country, that we’ll be almost $2 billion,” said Chipata. “So, it is possible [to pay back our loans from gold earnings]. But we have to start quickly and we need the support of everybody for us to realise that. The task is very huge but it can be done!”

Source: https://www.themastonline.com/2020/06/02/were-in-a-hurry-to-develop-the-gold-sector-chipata/

ZCCM Investments Holdings (ZCCM-IH) says the door remains open for anyone to approach ZCCM-IH for partnerships in the gold value chain.

Public relations manager Loisa Mbatha-Kakoma said in a statement that ZCCM-IH had prioritised investments in the mining sector particularly in other minerals such as gold and manganese.

Kakoma said as mandated by the government to harness the gold potential in the country, ZCCM-IH strategy was to forge partnerships with any industry player with in the gold value chain.

She said the partnership with Karma Mining Services and Rural Development was one such partnership where the joint venture (Consolidated Gold Company Zambia) is entirely focused on gold processing.

On the partnership between ZCCM-IH and Karma Mining Services and Rural Development (Karma), Kakoma said the company owned by Sudanese individuals came into Zambia in 2016 and registered the company in November 2018.

“Just like any foreign investor, they came in the country in search of investment opportunities in the gold mining sector. They first started with the Ministry of Commerce, Trade and Industry, and went through the Zambia Development Agency to apply for an investment licence. Their key interest was only in setting up gold processing lines in the gold value chain in which they possess vast experience and expertise from their country of origin – Sudan,” she explained.

“Karma first embarked on talking to existing local small scale gold mining licence holders in the country for partnerships in processing their gold ore, particularly in Eastern Province, before setting up the company in Zambia. With established potential partnerships with these local mining licence holders, they applied for a Mineral Processing Licence through the Ministry of Mines and Minerals Development to enable them set-up gold processing plants.”

Kakoma said instead of them doing it entirely on their own, and engaging commercially with the local small scale licence holders, they were advised by the Ministries of Commerce, Trade and Industry and the Ministry of Mines to partner with ZCCM-IH, which was now mandated to drive the gold national agenda, with gold being declared a strategic mineral.

“In fact, the granting of the Mineral Processing Licence to Karma was dependent on them partnering with ZCCM-IH. The two ministries should actually be applauded for their pro-activeness in seeing that any investor coming to invest in the gold sector now should partner with ZCCM-IH,” she said.

“We must also understand that the sole business of the joint venture between Karma and ZCCM-IH is only in gold processing. Karma does not own any gold exploration or mining licences, and will not own any of these, except for mineral processing licences.”

She said ZCCM-IH undertook its own due diligence on Karma who had already signed agreements with two existing local small scale gold mines to start processing gold.

She said seeing that Karma was bringing on board the machinery and vast technical expertise and know-how in good processing, ZCCM-IH entered into a partnership with Karma to form the Joint Venture – Consolidated Gold Company Zambia Ltd – and negotiated for a 45 per cent stake in the JV.

“In addition to this, it is enshrined in the agreement with Karma that ZCCM-IH will be able to increase its stake in CGCZ or own it entirely after five years. This period will ensure knowledge and skills transfer in running the operations of gold processing and ensure the business is established successfully,” she said.

“Further, not only does ZCCM-IH have this significant minority stake, ZCCM-IH has strategic management control in the company and is actively involved in the operations for direction. For instance, the chief financial officer and procurement officer are appointed by ZCCM-IH, and additionally a technical person, a metallurgist is attached to the JV.”

Kakoma said holding a significant minority or majority stake in new investments with investors coming to partner with ZCCM-IH, with some level of control and participation in strategic management positions, was part of new strategy aimed at ensuring ZCCM-IH gets value and ensures checks and balances in the running of these new entities.

She said the benefits of the partnership between Karma and ZCCM-IH in CGCZ was all about empowerment of the local small scale gold miners.

She said a lot of small scale licence holders have struggled to develop their mines due to lack of resources to conduct exploration to estimate the resources.

“Most of them have been mining alluvial gold which only involves sifting through gravel to separate the pieces of gold, and can be done by a single miner with a gold pan, by washing the ore in water. However, the process of hard rock gold mining and processing requires professional technical expertise for gold to be extracted; it is found in rocks which are supposed to be extracted from beneath the ground, crashed and milled into very fine particles, then chemically processed using leaching processes to extract the gold,” she said.

She said CGCZ was partnering with existing small scale licence holders to set-up gold processing lines for all types of gold ore materials and they were also being helped with technical expertise to open up gold veins by providing access to earth moving machinery as well.

Kakoma said all this would see a boost in their gold production.

“Again, knowledge and skills transfer in gold processing to these local licence holders will be another benefit. As such, any current licence holder is free to partner with any investor to mine and process the gold in their licence area. There are currently small scale licence holders who are already doing so with other foreign partners other than CGCZ or Karma or ZCCM-IH,” she said.

She said the industry traditionally had remained unformalised and a lot of illegal mining had been taking place since time immemorial.

“And there are sections of society, particularly foreigners, that have been massively benefiting from this illegality. There are no formal records of how much gold is siphoned and smuggled out of the country. There are over 60 spotted gold mining areas around the country, and the locals are currently mining. CGCZ is only present in Rufunsa and Mumbwa; and in Mwinilunga ZCCM Gold Company will entirely be responsible for mining and processing operations. CGCZ is not participating in the Kasenseli gold mine as alleged in social media commentary,” she said.

On the CGCZ and Array Metals Joint Venture, Kakoma said the partnership between CGCZ with Array Metals was another JV where Array Metals hold the exploration licence in Mumbwa and have invested millions of dollars in geological exploration to estimate the gold resources.

“Again, they could have started processing gold on their own with any investor, considering it is their licence. But they approached CGCZ for a JV in gold processing seeing what CGCZ is already doing with other small scale licence holders in Eastern Province. They saw it fit to have CGCZ come on board to invest in processing their ore materials and negotiated a revenue split of 65 per cent for CGCZ and 35 per cent as licence owners,” she said.

Kakoma said early this year, ZCCM-IH formed ZCCM Gold Company to oversee and undertake investments in the gold sector’s value chain.

“ZCCM Gold is owned 51 per cent by ZCCM-IH and 49 per cent by the Ministry of Finance, and was formed after CGCZ was established and already operational. ZCCM Gold will invest in the entire value chain starting from gold exploration, mining, processing, refining, trading and beneficiation. It will hold its own licences in mining in other gold occurrence areas,” she said.

She said the first project was the Kasenseli gold mine which will be a large scale mining and processing operation. ZCCM Gold is in charge of all the operations of the project.

Kakoma said a special purpose vehicle was being formed which is comprised of ZCCM Gold as majority shareholder, alongside the previous licence holders who are Zambians and the Chiefdom Trust as equity partners.

She said CGCZ or Karma were not party to the Kasenseli project.

Kakoma said the mandate given to ZCCM-IH to harness the gold sector was being implemented by ZCCM Gold.

“ZCCM Gold started buying gold mined by artisanal gold miners in February this year, by providing an open market and competitive pricing as the first step towards formalising the industry.
Gold mining activities have been taking place for years albeit illegally. And now there is a pro-active attempt to formalise the small scale and artisanal gold mining sector. So far, Government has given artisanal miners gold panning certificates to legalise their alluvial or riverbed gold mining activities,” she said.

“ZCCM Gold is working with these licenced artisanal gold miners by providing them with gold equipment, access to earth moving machinery, and offering technical expertise among others. Again, this is another avenue in which citizen participation in the gold sector is being encouraged and promoted.”

She said ZCCM Gold will set-up a gold refinery in future to start producing gold bullions.

“At Kansanshi Mine for example, gold is a by-product of a huge mining operation, and only produce an annual average of 5 tonnes of gold. ZCCM-IH is open to any local Zambians with this technical expertise in gold processing, to forge partnerships in developing the sector, or they can also apply and obtain licences or partner with existing small scale licence holders to develop the gold mines,” she said.

“As a country, we are still at a very early stage in formalising and establishing the industry, and this will require hard work and investment over time to attain high production levels. We will obviously need any technical expertise throughout the gold value chain considering the vastness of gold occurrence areas in the country.”

Source: https://www.themastonline.com/2020/05/29/door-remains-open-for-anyone-to-approach-zccm-ih-for-partnerships-in-gold-value-chain/

Lusaka, Zambia – ZCCM Investments Holdings (ZCCM-IH) has prioritised investments in the mining sector particularly in other minerals such as gold and manganese. As mandated by Government to harness the gold potential in the country, ZCCM-IH strategy is to forge partnerships with any industry player within the gold value chain. The partnership with Karma Mining Services and Rural Development is one such partnership were the joint venture (Consolidated Gold Company Zambia) is entirely focused on gold processing.

The following account provides clarity on various issues raised by stakeholders:

1. The partnership between ZCCM-IH and Karma Mining Services and Rural Development (Karma)
   Karma came into Zambia in 2016 and registered the company in November 2018. Just like any foreign investor they came in the country in search of investment opportunities in the gold mining sector. They first started with the Ministry of Commerce, Trade and Industry, and went through the Zambia Development Agency to apply for an investment licence. Their key interest was only in setting up gold processing lines in the gold value chain in which they possess vast experience and expertise from their country of origin – Sudan.
   Karma first embarked on talking to existing local small scale gold mining licence holders in the country for partnerships in processing their gold ore, particularly in Eastern Province, before setting up the company in Zambia. With established potential partnerships with these local mining licence holders, they applied for a Mineral Processing Licence through the Ministry of Mines and Minerals Development to enable them set-up gold processing plants.
   Instead of them doing it entirely on their own, and engage commercially with these local small scale licence holders, they were advised by the Ministries of Commerce, Trade and Industry and the Ministry of Mines to partner with ZCCM-IH, seeing that ZCCM-IH was now mandated to drive the gold national agenda, with gold being declared a strategic mineral. In fact, the granting of the Mineral Processing Licence to Karma was dependent on them partnering with ZCCM-IH.
   The two Ministries should actually be applauded for their pro-activeness in seeing that any investor coming to invest in the gold sector now, should partner with ZCCM-IH.
   We must also understand that the sole business of the JV between Karma and ZCCM-IH is ONLY in gold processing. Karma does not own any gold exploration or mining licences, and will not own any of these, except for Mineral Processing Licences.
2. Shareholding of 45% stake in Consolidated Gold Company of Zambia (CGCZ)
   ZCCM-IH undertook its own due diligence on Karma who had already signed agreements with two existing local small scale gold mines to start processing gold. Seeing that Karma was bringing on board the machinery and vast technical expertise and know-how in GOLD PROCESSING, ZCCM-IH entered into a partnership with Karma to form the Joint Venture – Consolidated Gold Company Zambia Ltd – and negotiated for a 45% stake in the JV. In addition to this, it is enshrined in the agreement with Karma that ZCCM-IH will be able to increase its stake in CGCZ or own it entirely after five years. This period will ensure knowledge and skills transfer in running the operations of gold processing and ensure the business is established successfully.
   Further, not only does ZCCM-IH have this significant minority stake, ZCCM-IH has strategic management control in the company and is actively involved in the operations for direction. For instance, the Chief Financial Officer and procurement officer are appointed by ZCCM-IH, and additionally a technical person, a metallurgist is attached to the JV.
   Holding a significant minority or majority stake in new investments with investors coming to partner with ZCCM-IH, with some level of control and participation in strategic management positions, is part of our new strategy aimed at ensuring ZCCM-IH gets value and ensures checks and balances in the running of these new entities.
3.  The benefits of the partnership between Karma and ZCCM-IH in CGCZ
   It is all about empowerment of the local small scale gold miners. A lot of small scale licence holders have struggled to develop their mines due to lack of resources to conduct exploration to estimate the resources. Most of them have been mining alluvial gold which only involves sifting through gravel to separate the pieces of gold, and can be done by a single miner with a gold pan, by washing the ore in water.
   However, the process of hard rock gold mining and processing requires professional technical expertise for gold to be extracted; it is found in rocks which are supposed to be extracted from beneath the ground, crashed and milled into very fine particles, then chemically processed using leaching processes to extract the gold.
   CGCZ is partnering with these existing small scale licence holders to set-up gold processing lines for all the types of gold ore materials; they are also being helped with technical expertise to open up gold veins by providing access to earth moving machinery as well. All this will see a boost in their gold production for their benefit, and that of the country at large, as we develop this sector to
   bring about formalisation and regularisation. Again, knowledge and skills transfer in gold processing to these local licence holders will be another benefit.
   As such, any current licence holder is free to partner with any investor to mine and process the gold in their licence area. There are currently small scale licence holders who are already doing so with other foreign partners other than CGCZ or Karma or ZCCM-IH.
   The industry traditionally has remained unformalised and a lot of illegal mining has been taking place since time in memorial. And there are sections of society particularly foreigners that have been massively benefiting from this illegality. There are no formal records of how much gold is siphoned and smuggled out of the country.
   There are over 60 spotted gold mining areas around the country, and the locals are currently mining. CGCZ is only present in Rufunsa and Mumbwa, and in Mwinilunga ZCCM Gold Company will entirely be responsible for mining and processing operations. CGCZ is not participating in the Kasenseli gold mine as alleged in social media commentary.
4. The CGCZ and Array Metals Joint Venture
   The partnership between CGCZ with Array Metals is another JV where they (Array Metals) hold the exploration licence in Mumbwa, and have invested millions of dollars in conducting geological exploration to estimate the gold resources. Again, they could have started processing gold on their own with any investor, considering it is their licence. But they approached CGCZ for a JV in gold processing seeing what CGCZ is already doing with other small scale licence holders in Eastern Province. They saw it fit to have CGCZ come on board to invest in processing their ore materials and negotiated a revenue split of 65% for CGCZ and 35% as licence owners.
   So any Zambian can still approach Array Metals to partner with them be it in mining or processing, seeing they have a large scale exploration licence in Mumbwa, and the JV with CGCZ is to process only a portion of the same over a period of time.
5. About ZCCM Gold Company
   Early this year, ZCCM-IH formed ZCCM Gold Company to oversee and undertake investments in the gold sector’s value chain.
   ZCCM Gold is owned 51% by ZCCM-IH and 49% by the Ministry of Finance, and was formed after CGCZ was established and already operational.
   ZCCM Gold will invest in the entire value chain starting from gold exploration, mining, processing, refining, trading and beneficiation. It will hold its own licences in mining in other gold occurrence areas. The first project is the Kasenseli gold mine which will be a large scale mining and processing operation. ZCCM Gold is in charge of all the operations of the project. A
   Special Purpose Vehicle is being formed which is comprised of ZCCM Gold as majority shareholder, alongside the previous licence holders who are Zambians and the Chiefdom Trust as equity partners.
   CGCZ or Karma are not party to the Kasenseli project.
6. The role of ZCCM Gold Company
   The mandate given to ZCCM-IH to harness the gold sector is being implemented by ZCCM Gold. ZCCM Gold started buying gold mined by artisanal gold miners in February this year, by providing an open market and competitive pricing as the first step towards formalising the industry.
   Gold mining activities have been taking place for years albeit illegally. And now there is a pro-active attempt to formalise the small scale and artisanal gold mining sector. So far, the Government has given artisanal miners gold panning certificates to legalise their alluvial or riverbed gold mining activities. ZCCM Gold is working with these licenced artisanal gold miners by providing them with gold equipment, access to earthmoving machinery, and offering technical expertise among others. Again, this is another avenue in which citizen participation in the gold sector is being encouraged and promoted.
   As ZCCM Gold build up gold stocks, and get a fair understanding of gold production in the country, ZCCM Gold will set-up a gold refinery in future so that we also start producing gold bullions, and also have a beneficiation line to make jewellery among others.
   So, there are vast business opportunities in the gold value chain, and any Zambian can participate. In addition, ZCCM Gold will partner with any local licence holder to conduct exploration and mining were potential viability is established.
7. Technical expertise in gold processing
   Indeed, alluvial gold can easily be obtained on the surface. But as the resource gets deeper it would require huge capital outlay to mine. At Kansanshi Mine, for example, gold is a by-product of a huge mining operation, and only produce an annual average of 5 tonnes of gold.
   ZCCM-IH is open to any local Zambians with this technical expertise in gold processing, to forge partnerships in developing the sector, or they can also apply and obtain licences or partner with existing small scale licence holders to develop the gold mines.
   As a country, we are still at a very early stage in formalising and establishing the industry, and this will require hard work and investment over time to attain high production levels. We will obviously need any technical expertise throughout the gold value chain considering the vastness of gold occurrence areas in the country.

ZCCM-IH remains committed to ensure that the benefits that will arise from the formalisation of the gold sector will empower the licence holders, the local communities
and derive value for its shareholders. The door remains open for anyone to approach ZCCM-IH for partnerships in the gold value chain.

Source: https://copperbeltkatangamining.com/zccm-ih-and-its-investment-strategy-in-the-gold-sector-in-zambia-a-statement-by-zccm-ih/

MINES and Minerals Development Permanent Secretary Barnaby Bwalya Mulenga says although the law on declaration of gold as a strategic mineral has not yet been concluded, the guarantee of securing gold from the partnership between ZCCM-IH and Sudan’s Karma Limited was based on contractual obligations of the parties.

And Mulenga says partnerships in the processing of gold are meant to complement the government’s efforts to account for all gold in Zambia.

In a statement, Mulenga stated that government was aware of the many concerns raised by stakeholders on the gold partnerships but that it had declared gold a strategic mineral meant to benefit every citizen.

“ZCCM-IH Plc has partnered with Karma Limited, a company owned by Sudanese Nationals. Karma Limited set up a gold processing plant in Rufunsa at a cost of about USD$3.5 million. Later, the company partnered with ZCCM-IH Plc. That partnership has been actualised through a special purpose vehicle called the Consolidated Gold Company Zambia Limited (CGCZ). CGCZ has been granted a Mining Processing Licence in Rufunsa District where the company has approached two Licence holders namely Chembe Gold Mine Limited and Sabi Gold Mine Limited. The partnership is to use the mineral ore material from these mining companies to process gold. That partnership entails that 65% of the gold will be for CGCZ and 35% for the Licence holders,” Mulenga stated.

“Currently, CGCZ has applied for another Mineral five Processing Licence for Mumbwa where the company has approached a licence holder called Array Limited to utilize their mineral ore material. In other words, both CGCZ or Karma Limited are not undertaking any mining of the gold ore material but partnering with existing licence holders. All the gold recovered through this partnership shall all be sold to Bank of Zambia, as per government policy. Even though the law on the declaration of gold as a Strategic Mineral has not yet been concluded, the guarantee of securing the gold from this partnership comes from the contractual obligations of the parties and the directive to ZCCM-IH Plc by Government.”

On the Array gold ore processing agreement, he said that was a private transaction with CGCZ.

“The partnership in Mumbwa involves Array Limited supplying gold ore for processing to CGCZ in Mumbwa and Karma will invest USD$2.5 Million for the establishment of the processing Plant. This is a commercial transaction in which a private licence holder (Array Limited) elected to partner with CGCZ for the mineral ore material to be processed by CGCZ. The concept of partnering in business, is done for different reasons, including the fact that one would like to mitigate the risks of not having the technology to process,” Mulenga stated.

He stated that the current old policy did not state that gold would exclusively be mined, processed and handled by Zambians, but rather ensured that all gold from artisanal miners was bought through ZCCM-IH Plc to Bank of Zambia to build strategic reserves.

“Almost 92% of all licences in Zambia are owned by Zambians. The government policy in mining is to encourage both Local and Foreign Direct Investment (FDI) in the sector. Mining requires huge capital investment which prompts licence holders to borrow from Banks and other investors. Licence holders are free to use any lawful source of capital available to them to achieve the licence conditions…The Policy also tasks ZCCM-IH Plc to be involved in the opening of new gold mines at small and large scale levels, hence the involvement in Kasenseli in Mwinilunga,” Mulenga stated

“The policy does not entail grabbing or expropriating existing gold licences from the holders in favour of ZCCM-IH Plc, but rather encourage more gold mines to be established in the country whose gold production would end up with Bank of Zambia. Licence holders are free to partner with ZCCM-IH Plc to exploit the gold resources. This Policy has not been fully realized because the law is yet to be amended to actualize the policy aspirations. This is why gold producing companies such as Kansanshi Mines Plc are not currently compelled to sell the gold to Bank of Zambia. This Policy was approved by the government in October 2019. After the Policy, the legislative changes are required to implement the policy in full because before that, there is no legal basis to compel a mine licence holder to sell the gold to ZCCM-IH Plc. In line with the Policy, Cabinet on Wednesday 20th May 2020 approved a proposal from the Minister of Mines and Minerals Development, Richard Musukwa, MP for the Mines and Minerals Development Act to be amended.”

He further recognized concerns from citizens about the transactions that the ZCCM-IH had entered into in the mining and processing of gold.

“There have been concerns from various stakeholders on what the Zambian government position is in relation to gold and the partnerships ZCCM Investments Holdings Plc has entered into with Karma Limited and other stakeholders. The following is the explanation on the various aspects raised as concerns by the public and the Ministry position on the matters. Zambia is endowed with gold resources and the government remains committed to ensuring Gold benefits the people of Zambia. Government has declared gold as a Strategic Mineral meant to allow all citizens to benefit from its exploitation. This means gold must be differently handled compared to other Minerals in the country. In that vein, ZCCM-IH Plc has been mandated to coordinate efforts to purchase the gold from Artisanal miners and to also coordinate the gold trading business in Zambia,” Mulenga stated.

He stated that the country had 3,666 gold mining licences at the end of the first quarter of 2020.

“There are a lot of gold occurrences in Zambia involving almost all Provinces. The gold occurrences and resources are more pronounced in Eastern Province, North-Western, Central and Lusaka Provinces. Zambia is not fully mapped, meaning there are still areas of Zambia where we do not know what minerals are present at those locations. Gold exploration is even more difficult because in some areas, the exploration may not yield promising results of sufficient gold mineralization to justify commercial exploitation. However, sometimes what happens is that people later discover substantial quantities of gold e.g. in Mwinilunga, Kasenseli area, ” stated Mulenga.

Source: https://diggers.news/business/2020/05/25/zccm-ih-karma-ltd-gold-deal-is-secured-by-contractual-obligations-in-absence-of-law-govt/

ZAMBIA’S plans to shore up its finances took another turn last week after the southern African country amended legislation to make gold a strategic metal.

According to a report by Bloomberg News, the Zambian government will require artisanal miners to sell their gold production to the state-owned mining investment company ZCCM Investments Holdings (ZCCM-IH).

The cabinet approved the amendment of legislation on May 20, Bloomberg News said, citing the mines ministry’s permanent secretary, Barnaby Mulenga.

Zambia wants its national gold production to help the central bank build up the nation’s strategic reserves, the newswire said.

ZCCM-IH has been mandated to coordinate the purchasing and trading business in Zambia. The country mined about 4,000 kilograms of gold in 2018 and is Africa’s second-largest copper producer.

Last week, ZCCM-IH entered into a joint venture with Array Metals, a mining services company, to process production from a gold deposit, said Reuters citing a statement.

The project aims to produce about three tons of gold within the next two years, worth approximately $150m at current prices. Array Metals estimated the reserve at about three million tons of gold ore material containing between 2.5 and 3.5 grams of gold per ton, according to vice president, Chris Rugari.

ZCCM-IH has overseen the construction of 10 milling plants that will help formalise the artisanal gold sector in the country.

Bringing in artisanal gold production from the edges of society is also part of a continent-wide push to tackle the risks associated with secondary gold production including unsafe mining practices and law-breaking.

Zambia’s milling plants will have a combined processing capacity of 30 tons of ore per day and a targeted average of 7.5kg gold production per month. A gold leaching plant with a processing capacity of 8,000 tons of ore material per leach, and a targeted gold production of 17.5 kilograms per month will be completed by June.

Source: https://www.miningmx.com/news/gold/41980-zambia-advances-plans-to-shore-up-finances-as-gold-to-be-deemed-a-strategic-metal/