Africa’s second-largest copper producer initiates an ambitious joint gold mining operation
Zambia's state-operated investment company, ZCCM Investments Holdings, has initiated a new gold-focused joint venture with the goal of uncovering new mineral wealth in Zambia's northwest in a daring attempt to expand its mining footprint beyond copper.
Black News 
Zambia's state-operated investment company, ZCCM Investments Holdings, has initiated a new gold-focused joint venture with the goal of uncovering new mineral wealth in Zambia's northwest in a daring attempt to expand its mining footprint beyond copper.
- ZCCM Investments Holdings has launched a new gold-focused joint venture to explore and develop gold resources in Zambia.
- The new company, Kyalo Goldfields Limited (KGL), will focus on evaluating the Kikonge Mining Area and formalizing artisanal and small-scale mining.
- KGL will help create regulated gold extraction and set up processing infrastructure to retain more value in Zambia.
- ZCCM-IH will maintain a controlling 51% stake in KGL, with a partner experienced in mining tin, tantalum, and tungsten holding the remainder.
The move reflects Zambia's increasing desire to diversify a mining sector that has long been dominated by copper, a metal that has supported a large portion of the nation's economy for many years.
ZCCM, via a statement, noted that Kyalo Goldfields Limited (KGL), a new company established on May 6, for evaluating and developing gold resources in the Kikonge Mining Area of Zambia's North-Western Province, would play a pivotal role in this new scheme.
The investment firm disclosed that KGL will facilitate the formalization of artisanal and small-scale mining operations within the region to guarantee the secure and regulated extraction of gold.
Furthermore, as seen on Reuters, KGL will establish processing infrastructure to increase value retention within the Southern African country.
"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," ZCCM-IH CEO Kakenenwa Muyangwa said.
ZCCM-IH will keep a controlling 51% ownership in the company, while its partner, known for harvesting and processing tin, tantalum, and tungsten in the adjacent Democratic Republic of the Congo, would possess the remaining portion.
The announcement comes as Zambia seeks greater domestic ownership of its mineral industry, reflecting a broader trend across Africa in which governments desire a larger part of mining income.
According to ZCCM-IH, KGL's operations will be initially financed by shareholder contributions, with other structures being examined as it progresses.
"Upon completion of this process, the company will have clarity on the investment amount," it said.
Just last week, ZCCM-IH Chief Executive Kakenenwa Muyangwa disclosed that the business is looking into ways to raise its interest in existing mining assets, within its borders, but only through commercial agreements, not forced acquisitions.
ZCCM-IH already has minority stakes in many large mines operated by foreign corporations, including First Quantum Minerals and Vedanta Resources, and is preparing to increase its stake in Mingomba Mining, indicating that Zambia is slowly strengthening its grip on its mineral future.
