ZCCM Gold invests $2.5m in Kasenseli gold mine project in Zambia

ZCCM Gold, a subsidiary of Zambia’s ZCCM Investments Holdings Plc (ZCCM-IH), has injected K45m ($2.5m) for the initial phase of the Kasenseli gold mine project in Mwinilunga in the North-west province.

Lusaka Securities Exchange (LSE) listed ZCCM-IH, recently setup ZCCM Gold to handle all gold mining and exploration activities in the landlocked country.

ZCCM Gold was granted an exploration licence by the Ministry of Mines and Minerals Development last month and has already moved to the site in the Northwest of Zambia to undertake detailed exploration that will determine the extent of gold mineralisation in the licence area.

Loisa Mbatha-Kakoma, public relations manager, ZCCM-IH, said the extensive exploration works which include geophysics, geochemistry and diamond drilling activities are aimed at delineating the hard-rock gold deposits in the licence area.

Mbatha-Kakoma explained that the mining and processing of the alluvial (surface) gold is pending approval of the Environmental Project Brief (EPB) by the Zambia Environmental Management Authority (ZEMA), and the granting of the mining licence by the Ministry of Mines.

“The capital injection will also go towards the fencing of the licence area to avoid and prevent any intrusion and illegal mining activities,” she added.

According to ZCCM-IH, over 40 locals will be employed in the fencing exercise. “The fence is an additional security measure to the state security that is already on the ground and keeping vigil, patrolling the area to wade off any illegal activities,” Mbatha-Kakoma said.

Mabvuto Chipata, CEO, ZCCM-IH, said it has taken a bit of time to start the operations at the mine due to a number of statutory and regulatory approvals that are required.

Chipata said ZCCM-IH as a listed entity cannot start any operations without obtaining the necessary required approvals.

He pointed out that ZCCM-IH is required to comply with best corporate governance practices as required by the LSE listing rules, Mines and Minerals Development Act, Zambia Public Procurement Authority Act, and the Zambia Environmental Management Authority Act.

ZCCM-IH through ZCCM Gold has been mandated to drive Zambia’s gold agenda, working in collaboration with the Ministry of Mines and Minerals Development and other stake holders in Africa’s second largest copper producer.

ZCCM Gold is owned 51% by ZCCM-IH and Zambia’s Ministry of Finance has a 49% stake.