Zambia’s Mines and Mineral Development Minister has advised key stakeholders that progress on the reopening on Kasenseli Gold Mine in Northwestern Province was progressing well with one of the key issues that was being addressed being having in place a ‘sound social contract’ with the community around the mine.
Paul Kabuswe was quote in the Times of Zambia, 13th December 20221 edition, saying that “he was meeting Chief Chikwika in the third week of December 2021 as well as other key stakeholders to structure a workable mining plan for the mine”.
In October this year, the Minister suspended operations at the mine following a number of security and safety issues that had arisen since the mine’s commencement of exploration activities following their move on site in April 2020.
Furthermore, according to the same issue of the Times of Zambia, Chief Chibwika was cited as requesting for the mine to be shutdown.
This shutdown has derailed the Central Bank’s purchases of gold. According to the Zambia Business Times, “The Bank of Zambia has been purchasing dore gold from Kasenseli Mine since December 2020, through the Zambia Gold Company and refined gold from Kansanshi Mine from January, 2021. The Bank has so far purchased 20,600 ounces of refined gold valued at US $37 million” in a statement from the Public Relations Department at Bank of Zambia.
The social contract alluded to requires a concerted effort on all key stakeholders as there will be expectation management that will need to be implemented. It has been noted that the community does feel that they need to ensure that they rip the benefits of having gold deposits in their area. However, ZCCM IH has been mandated to over see the structuring of progressive agreements that will ensure that there is a pathway to structured mining deals in Zambia that have the potential of scaling up to world class entities.