ZCCM-IH and Karma Mining Services and Rural Development have entered have joint venture partnership through the incorporation of Consolidated Gold Company (CGC) of Zambia with 45% and 55% shareholding.
The company has invested $3.5 million in setting up a lab, procurement of gold milling plants and earth moving equipment. The gold milling plants have a capacity of processing 30 tonnes per day, and will be operational by the first week of April 2020.the target from the gold milling plants is to produce 300 grams of gold per day, that translates into approximately 7.5 kgs per month.,
During the laboratory media tour ZCCM-IH (CEO) Chief Executive Officer Mabvuto Chipata stated that this joint venture is to develop a gold processing and trading operation in Zambia.
“The operation of the project accords ZCCM-IH an opportunity to participate in the value chain of the gold sector through gold processing,” Chipata said.
He further said that the investment is in line with one of ZCCM-IH‘s strategic objectives in mining value creation which is to diversify the company’s investments away from copper linked investment to other minerals such as gold and other precious metals.
The total project investment is about $3.5 million.
Meanwhile CGC (CEO) Chief Executive Officer Faisal Keer said that this laboratory is targeted at the operations working with small scale gold miners.
“This lab is critical which is meant to determine the gold content accurately in the ore that received from the miners to get a faire share and value for their minerals,” keer said.
Keer also said that the company is helping licenced small scale gold miners in the area,
“And also providing access to earth machinery in order to increase gold ore production and aiming to transfer technical skills to the miners who are dealing in lode gold or quartz vein gold mining,” he added.
So far the company has invested about $250,000 in setting up the facility.
And eight gold mining and panning sites across the country to undertake a scoping exercise. Based on the scoping exercise ZCCM-IH has started purchasing gold in Rufunsa, Vubwi, Mumbwa and Luano.
The national target for gold from both primary and secondary sources is 40 tonnes and secondary sources on artisanal and small scale gold miners which is about 43% from the national target.