Government, through the Bank of Zambia (BoZ), will buy and collect more than 40,000 kilogrammes of gold from primary and secondary sources, including artisanal and small-scale gold miners, Mines Permanent Secretary Barnaby Mulenga has announced.

And ZCCM-IH chief executive officer Mabvuto Chipata has disclosed that the institution has embarked on a programme to set up gold-buying centres in strategic panning areas.

Speaking during a press briefing in Lusaka, Thursday, Mulenga said the government was in dire need of liquid cash and that as such, gold mining licenses of companies that had not yet commenced operations would be revoked.

“The information generated will facilitate delineation of areas into gold panning, artisanal, small or large-scale. Large-scale areas will be reserved for government to license. On the other hand, reserves and river beds will be allocated or licensed to panners and artisan miners. Revoking non-compliant licenses in the targeted areas in public interest pursuant to section 72 (l) (i) of the Mines and Minerals Development Act of 2015. We need the money, as government, so what are they waiting for? Those who have not commenced operations will lose their licences,” Mulenga cautioned.

“Compelling existing small and large-scale mining companies to account for the gold from their mining operations, implementing measures to curb illegal exploitation of gold and means of accounting for the gold to raise revenue for the government. Other measures include: sensitization of local communities to ensure success of the strategy. The strategy requires a multi-sectoral approach to ensure that all ministries cooperate to account for the gold. The target amount of gold to be collected, as we’ve said by 2020, is 40,000Kgs. And this will come from primary sources and secondary sources that include artisanal and small-scale gold miners. And this is achievable through a well-coordinated approach; that is why we have mandated ZCCM-IH to drive this strategy, working with various partners and stakeholders.”

He said Zambia currently had more than 21 districts with deposits of gold at varying quantities.

“There are currently 21 districts with active gold mining activities, which include: Solwezi; Mwinilunga; Kasempa; Mumbwa; Kabwe; Chisamba; Senga Hills; Mpika; Chilanga; Chadiza; Chirundu; Kazungula; Lundazi; Chongwe; Petauke; Lusangazi; Vubwi; Luano; Rufunsa; Chipata; Mkushi and Serenje. More and more districts are discovering that there is gold in their areas because Zambia is not full or 100 per cent geologically mapped, but rather stands at about 62 per cent,” said Mulenga.

“Computation of estimates of the gold that could be bought off/collected can only be realized with an aggressive approach towards harnessing the artisanal miners in Zambia. We also want our people to derive value from their hard work and not the manner in which they are being exploited by unscrupulous people. This approach will help uplift the living standards of our people, who are currently panning for gold, and improve their local economies in a sustainable and environmentally friendly manner. And that’s where ZCCM-IH comes in.”

And Chipata said the institution was in the process of forming a Special Purpose Vehicle (SPV) that would oversee the operations of all gold-related operations.

He outlined that ZCCM-IH had since embarked on a programme to set up gold-buying centres in strategic panning areas.

“We are in the process of forming a Special Purpose Vehicle that will oversee and undertake all gold-related projects. The name of this vehicle is yet to be announced. Once these results are out, we will continue with the exploration programme, particularly for the primary source of the gold in Kasenseli. This exploration for primary gold source will be happening in tandem with preparatory works for us to commence mining within 2020 once statutory approvals are finalized. Second, as one of the steps towards the formalization of the artisanal and small-scale gold miners. ZCCM-IH has embarked on a programme to set-up gold buying centres in strategic gold panning areas. We have since obtained a mineral trading permit to this effect to enable us carry out this programme. The initial sites include: Rufunsa; Vubwi; Luano; Petauke; Senga Hill and Mumbwa, and will be rolled out to other areas in the country with gold occurrences,” Chipata explained.

He added that ZCCM-IH was working in collaboration with the Ministry of Mines to formalize artisanal gold mines with the objective of curbing illegal mining activities.

“The main objective is to curb the smuggling of gold out of the country; provide an open market and competitive prices for the artisanal gold miners, and ultimately, take stock of the gold output from artisanal miners. Third, aside from this gold-buying programme, we are also working towards formalization of artisanal gold miners in collaboration with the Ministry of Mines and other stakeholders…So far, cooperatives have been registered in some areas such as Rufunsa and Petauke, and these will be given artisanal licences within the licence areas to be granted and managed by ZCCM-IH. As you have witnessed already, there has been a lot of environmental damage in gold panning and mining areas. So, the first step will be to undertake some environmental remediation exercise and this will be done through our environmental and technical services subsidiary, Misenge. We will further provide technical expertise to the artisanal gold miners with regards to mine planning, safety, among others,” said Chipata.

Source: News Diggers

MINING has for over five decades been the mainstay of the country’s economy and has been the goose which has laid the golden eggs.
It has provided employment – direct and indirect – to thousands of Zambians and expatriates, as well as being the net foreign exchange earner.
Copper and other metals such as cobalt, lead, nickel and zinc have kept the economic wheels running as they are some of the most essential elements with strategic and irreplaceable industrial uses world over.
But the resumption of mining activities in North-Western Province, starting with Kansanshi in Solwezi and Lumwana in Kalumbila district, has added another dimension following the discovery of gold.
This has meant that Zambia’s mining portfolio has value addition, what with emeralds which are mined in Lufwanyama district on the Copperbelt.
Last week, Vice-President Inonge Wina told Parliament that more than 24,000 kilogrammes of gold was produced by four mining companies in Zambia from 2017 to February 2019.
Mrs Wina, however, said it was difficult to be exact about the figure due to rampant illegal mining of gold taking place all over the country.
Under-declaration of the actual production figures of gold by some mines cannot also be ruled out as there is no independent verification of the same.
While gold mined at Kansanshi, Lumwana and other mines is said to be aligned to copper, the discovery of pure gold at Kasenseli in Mwinilunga district of North-Western Province should make the difference.
There has been illegal mining at Kasenseli since the gold was discovered. The gold rush has unfortunately led to loss of lives.
It is public knowledge that charter planes have been landing in North-Western Province taking out gold (and suspected diamonds) that has been clandestinely mined.
Government cannot watch illegality to continue at Kasenseli and has since suspended all mining activities where about 2,000 illegal miners reportedly dig gold at the premises during the night.
The suspension of mining activities at Kasenseli Gold Mine has been made in public interest to bring order in Mwinilunga and security wings will be manning the facility.
Minister of Mines and Mineral Development Richard Musukwa said on Saturday that Cabinet resolved to suspend the mining activities at the facility to put in place a robust mining exploration programme.
It is also alleged that foreigners have camped in Mwinilunga to conduct illegal mining at Kasenseli.
The Zambia Consolidated Copper Mines–Investment Holding (ZCCM-IH), in partnership with the community in Mwinilunga, will oversee operations at the mine.
It has become inevitable for the State, through ZCCM-IH, to normalise gold production at Kasenseli for the benefit of all the stakeholders.
It is a pity that ZCCM-IH has been very slow to possess the mine and find partners to start production.
The country is in a hurry to develop and needs all the sales of its minerals to enhance foreign exchange earnings.
Gold is one of the best-selling minerals on the world market.
The successful production of gold will change the fortunes of Mwinilunga, which has for a long time relied on pineapples.
It also confirms the status of North-Western as the new copper belt region of the country.
Government will ensure that the gold endowment of Kasenseli is felt by all citizens in Mwinilunga and beyond as the revenue from exports will go towards social sectors such as health, education and cash transfer.
Going forward, ZCCM-IH should be proactive by being on top of things as opposed to waiting for illegal miners to discover minerals.
This country has trained and is still training geologists to ensure that all mineral-rich areas are zoned and protected.

source: www.daily-mail.co.zm/sanitise-gold-mining-for-maximum-revenue/

Source: Financial Insight

Finance, ZCCM-Investment Holdings Plc
Posted on December 20, 2019 at 5:24 am.
Written by Loisa Mbatha Kakoma

NOTICE IS HEREBY given that the Sixteenth Annual General Meeting of members of ZCCM Investments Holdings Plc will be held on Tuesday, 14 January 2020 at 10:00 hours at Southern Sun Ridgeway Hotel, corner of Church Road and Independence Avenue, Lusaka, Zambia to transact the following business:

1. To consider and adopt the Minutes of the 15th Annual General Meeting held on 28 January 2019.

2. To receive and adopt the audited Financial Statements for the year ended 31 March 2019, together with the Reports of the Directors and the Auditors.

3. To approve the final dividend of K0.33 per share recommended by the Directors.

4. To consider and adopt the recommendation to appoint External Auditors for the year ended 31 December 2019, and to authorise the Directors to fix their remuneration.

5. To confirm the appointment of: Mr Barnaby B Mulenga as Non-Executive Director on the ZCCM-IH Board.

6. To transact such other business as may properly be transacted at an Annual General Meeting.

A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, to vote in his/her stead. The proxy need not be a member of the Company. A proxy form is enclosed and must be deposited at the office of the Company Secretary not less than 48 hours before the time appointed for holding the meeting for those members who wish to be represented at the meeting.

AGM Proxy Form
The proxy form must be deposited at the office of the Company Secretary not less than 48 hours before the time appointed for holding the meeting.

By Order of the Board
Chabby Chabala
Company Secretary

Source: Financial Insight

Vice-President Inonge Wina says government still faces challenges in quantifying the exact amount of gold produced in Zambia due to huge numbers of illegal miners scattered across the country.

Responding to a question from Senga Hill PF member of parliament Kapembwa Simbao, who wanted to know how much gold would be mined in the country going forward, Vice-President Wina said gold quantities in the country were not yet known because of illegal mining engulfing the sector.

“Mr Speaker, there is a lot of gold mining going on in the country, but it has been undertaken by illegal miners, as we call them these days. There is a lot of artisan mining in areas in Eastern Province, like Vubwi, Petauke, and in Lunao Valley, in Mkushi and many other areas. So, government has taken interest in what is going on in the mining of gold and ZCCM-IH is taking stock to investigate the issue of gold mining in Zambia,” Vice-President Wina said.

“We know that in Mwinilunga (District), new deposits have been discovered and they are already some artisan miners there, but government has sent security defence forces to secure security of the mines. Mr Speaker, the quantities are not yet well known because of the illegal nature in which this industry has been tackled. But before long, government will come up with the actual figures of gold mines in Zambia in various sectors, including the mining companies.”

Earlier, in a question for oral answer, Mbala PF member of parliament Mwalimu Simfukwe asked Mines Minister Richard Musukwa whether there were any companies that were mining gold in Zambia.

In response, Vice-President Wina said four mining companies in the country were mining gold.

Vice-President Wina also revealed that gold production dropped from 16,283Kg in 2017 to 7,790Kg in 2018.

“The following companies where producing gold in Zambia as of February, 2019; Kansanshi mines gold alongside copper; Mopani Copper Mines produces slimes containing gold; Konkola Copper Mines produces slimes containing gold; Kalumbila produces copper anodes containing gold. Gold production in 2017 and 2018 was as follows: in 2017: 16,283Kg of gold, in 2018: 7,790Kg of gold. The gold was not refined at the time it was exported. There is no refinery for gold in Zambia,” she said.

She said it was difficult for government to ascertain what led to the reduction of gold production last year.

“Mr Speaker, in the mining industry, the gold comes as a by-product from copper so depending on the quantities, the traces of gold in the copper cathodes, it is very difficult to [know] why there was a reduction from 2017 to 2019. Again, we have no figures here of how much copper was mined during this period and how much of that copper contained gold deposits,” she said.

“Government has come up with figures for 2017 and 2018 for gold that was mined by the mining companies, which means that government is keeping a record of the gold that is produced by these companies and ZRA (Zambia Revenue Authority) is devising mechanisms to ensure that the mining companies are accountable for not only copper, but gold and cobalt (which) are by-products of copper so that reasonable tax is given to government.”

And Vice-President Wina said the Ministry of Mines was currently scrutinizing would-be investors interested in establishing gold mines.

“Currently, the Minister of Mines is receiving some investors interested in gold mining and the licenses are being scrutinized to identify the right investors. Gold mining in Zambia in various sites was started by Zambian artisan miners who did the mining on their own and now they’re being put into cooperatives that will eventually become companies to run these small mines. However, bigger conglomerates are applying to the Ministry of Mines to obtain licenses to go into gold mining. I cannot give a time-frame to when actual big companies will start mining gold,” said Vice-President Wina.

“Government has taken interest in using gold to secure our reserves. That is why government has directed ZCCM-IH to ensure that the gold that will be discovered or will be produced in various sites should be sold to the Bank of Zambia so that this can be turned into bullion for our national reserves.”

Source: News Diggers

Minister of Mines and Mineral Development Richard Musukwa says government is addressing challenges in the energy and transport sector to support mining in the country.

Addressing delegates at the ongoing Mines and Money Conference in London, Mr Musukwa said various power generation projects are being implemented aimed at creating new lines of power generation to increase the capacity 1,500 Mega Watts the year 2020.

He said the new lines will supply to the national grid in an effort to reduce the power deficit currently being experienced.

“Oil and gas exploration is another area of potential for investment in Zambia. The rift valley where oil has been discovered in East Africa extends into Zambia, an indication that Zambia could also have oil.

Speaking during the conference, ZCCM Investments Holdings Plc (ZCCM-IH) Chief Executive Officer Mabvuto Chipata said that the company is in talks with some of its investee companies to invest in alternative energy sources, particularly solar and wind.

Mr Chipata stated that having a diversified energy mix is key for the country and ZCCM-IH’s investee companies in the mining sector.

“As you know, the mining sector consumes about 50% of Zambia’s power output. As such, we are proactively looking to explore other power sources. For instance, we are looking at plans to set-up a mini solar grid in Mapatizya, where Kariba Minerals Limited is located.

“ZCCM-IH is also considering to explore non-traditional energy sources such as coalbed methane, oil and gas,” he said.

This is according to a media statement made available First Secretary for Press and Public Relations at the Zambian Embassy in United Kingdom Abigail Chaponda.

The Mines and Money now in its 17^th year is Europe’s largest mining investment event attracting over 3000 delegates comprised of investors and mining companies.

“In compliance with the Securities Act No. 41 of 2016 and the Listings Rules of the Lusaka Securities Exchange (LuSE), the Board of ZCCM Investments Holdings Plc hereby announces the appointment of Mr. Mabvuto T Chipata as Chief Executive Officer of the Company effective 11 October 2019”, read a statement issued on SENS by Company Secretary Chabby Chabala on Thursday 17^th October 2019.

Mabvuto Chipata ascended to the role of Acting CEO following the departure of Dr. Pius Kasolo in late January 2019. A stalwart in the company, Mabvuto “joined ZCCM-IH in July 2012 as Chief Financial Officer, the position he held until early 2018 when he was appointed Chief Investments Officer responsible for the Company’s investments function”.

According to ZCCM IH, “he has over the years been involved in a number of strategic developments in the Company leading different project teams”.  He also possesses experience in various senior management positions in sectors such as money and capital markets, Insurance, and manufacturing.

The new CEO’s performance will be assessed come end of the year as the company realigns its financial year-end albeit for only 8 months in the current 2019 financial year. “At the Meeting of the Board of Directors held on 16 August 2019, the Board of ZCCM Investments Holdings PLC resolved that the Company’s financial year-end, as well as that for all its subsidiaries, be changed from 31 March to 31 December with effect from 31 December 2019”, read a statement issued by the company on September 17^th 2019 following a requirement from the Public Finance Management Act No. 1 of 2018 (PFMA) which required it to align its financial year-end with the majority of ZCCM-IH’s investee companies including that of the Industrial Development Corporation (IDC), the majority Shareholder’s tax year.

Since taking office, Mabvuto has been a very busy man. In February 2019, he charged up Mapatizya with the unveiling of equipment worth K6 million for its investment in Kariba Minerals Limited which is intended to shake up the industry. Later that month, ZCCM-IH and Urban Hotel Group partnered to invest K60 million in the construction of a mixed-development property in Lusaka. In March 2019, he delivered three dividend checks to the Ministry of Finance, NAPSA and IDC. In April 2019, the company announced it had been granted a license to explore oil and gas in Chasefu district in Eastern province.

As the ink dries on his appointment, he will be critically looking at the fate of Ndola Lime and the litigation around KCM. He no doubt will continue to have a busy Q4 as he continues to steer the company with continued focus and resolved mandate.