Headlines

CONSOLIDATED GOLD COMPANY SIGNS JOINT VENTURE WITH ARRAY METALS TO PROCESS GOLD IN MUMBWA  

PRESS STATEMENT

 FOR IMMEDIATE RELEASE

20th May 2020, Lusaka, Zambia – ZCCM Investments Holdings (ZCCM-IH) has entered into a joint venture partnership through its subsidiary Consolidated Gold Company Zambia (CGCZ), with Array Metals, a global mining firm to process gold ore in Mumbwa, west of Lusaka.

An initial investment of approximately $2.5 million will be invested in this first stage of the project and will go towards the setting up of a gold wash plant and other mining machinery to mine and process placer gold raw material.

In the JV agreement, CGCZ will hold a 65% stake and Array Metals Zambia will have 35% in the project, with an initial phase targeted gold production of about 3 tonnes, worth approximately $150 million at current prevailing market prices.

“We have a two-year study conducted by Array Metals that has an estimated inferred resource by JORC standards of 3 million tonnes of gold ore material containing between 2.5 and 3.5 grams of the precious metal per tonne” said Array Metals Group Vice President Mr Chris Rugari after the signing of the agreement.

Mr Rugari stated that overall the total targeted gold production is 7, 500 kgs from this resource, estimated to be worth $400 million at the current prevailing market price. He however said that the agreement with CGCZ will first process part of the resource and later ramp up production and processing.

Witnessing the signing of the JV agreement, ZCCM-IH Chief Executive Officer Mr Mabvuto Chipata said that ZCCM-IH’s strategic drive to harness the gold potential as mandated by Government from areas with recorded gold occurrences in the country is aimed at contributing to the 40 tonne target, which can only be achieved through such partnerships.

And CGCZ Chief Executive Officer Mr. Faisal Keer further stated that the CGCZ is partnering with various small-scale gold miners in the country by providing mining technical expertise, and providing access to earth moving machinery and gold processing lines to kick-start and boost their gold production.

Mr Keer added that the mining and processing operations in the Mumbwa project is earmarked to start by Mid June 2020, once all statutory and regulatory approvals are obtained.

“As a medium-sized company, we are very excited about this partnership because it gives us an opportunity to work directly with the Government in contributing meaningfully to the development of Mumbwa traditionally known for agriculture, through economic diversification, local participation and job creation”, Mr Rugari added.

CGCZ is a gold processing and trading Joint Venture partnership between Karma Mining Services and Rural Development (55%) and ZCCM-IH (45%).

-END-

 

Issued by:

Loisa Mbatha-Kakoma

Public Relations Manager

ZCCM Investments Holdings Plc

kakomal@zccm-ih.com.zm

 

10 Comments

  1. CONCERNED CITIZEN

    Glory be to God that gold is slowly being discovered in our blessed country. so may the government take full ownership of the gold mines and they should not be privatised because we have been taught a lesson in the past where one person has became richer by disfunctioning all the mines on the copper belt through privatisation and you want to rule this country . My foot.

    Reply
    • Emmanuel Simasiku

      The one who brought Privatisation was DR FREDERICK CHILUBA. Who else can someone think of? Unless a person full of madness in them can say that.

      Reply
  2. Bambala

    This is where our Zambian technocrats let down we citizens due to unpatriotic decisions. How come the shareholding is always left to foreign companies, who have consistently been cheating us on their production figures and the percentage of the minerals in our ores? They pay almost nothing in taxes due to these ‘clever’ arrangements.
    Cant we surely copy from our neighbouring Botswana in the way President Masire’s government handled their diamond mines’ shareholding, resulting in their much stronger economy than ours?
    Even our international multilateral patners such as the Word Bank could give financial support to a venture such as this one to enable Zambia strengthen her currency and overall economy.
    There are surely thousands of well qualified Zambians even in government itself who can agree with this idea, but where is the political will? Are we happy with what is currently obtaining in our copper industry, where almost all the hard currency these foreign owned mines earn from our copper resources are kept outside Zambia’s borders?
    An assumption by an average Zambian that surely some Zambians in the decision making heirachy personally benefit from these skewed decisions. If our economic policies towards foreign investors remains like this we shall remain as beggars, borrowing millions of dollars, some of which these foreigners make from our own resources- borrowing our own money.

    Reply
  3. Malizgani Nyirenda

    If those mines will be owned by the government then our country is Rich but if we give them to individuals mmmmmmm kwali ca

    Reply
  4. AFRICAN

    You are not mambala this is because you are talking sense. The Russian president said as Africans we don’t believe in ourselves. Please for once let all the gold mines belong to government .

    Reply
  5. Bambala

    My dear AFRICAN, the name is Bambala, a Bemba name, not MAMBALA (a dishonest person).
    I am a senior citizen who always comments mostly on Zambia’s economic topics. I come from a Supplies Chain background, having retired from more than 40 years of work in this field. I believe in commenting as fairly as possible in the hope that some of our political decision makers can start doing things with the interest of we the common citizens.
    If the suggestion i have put across in my comment above – on local gold mining shareholding-was implemented, the Zambian Kwacha would greatly strengthen, making all our imports much cheaper.
    The initial millions of Dollars these foregn investors pump in these new mining projects should not warrant them syphoning all the mineral sales profits due to the unfairly skewed shareholding. These minerals occur under the Zambian ground, this should be our contribution in these ventures. Thank you.

    Reply
    • Tititit

      Have you seen what Zambia Report has done. At least I am able to tell who control this online media.
      They just pulled off the publication earlier posted concerning the joint venture with those foreign companies registered in Zambia to partner in Gold mining. So, if I am to ask, do they want us to praise even what we know contribute to making our nation be on its knees?

      Reply
  6. Tititit

    1. Array Metals Group Vice President Mr Chris Rugari;
    2. Consolidated Gold Company Zambia (CGCZ) Chief Executive Officer Mr. Faisal Keer.
    Is there anything Zambian about those companies and the people running them. Just because they have included Zambia to their companies does not mean it is a Zambian company whose monies will remain in our nation.
    Let’s be serious for once.

    Reply
  7. William Suku

    You’re on point Mr. Tititit if I can say, now, as a concern native of the country we need to put an eye over this matter their is gold in this (country)Zambia. Everyone is rushing after the other C.E.O-Faisal Keer from CGCZ,ARRAY METALS GROUP veepy Chris Rugari-don’t you fast is there anything relatively here. Watch up ! -tsm- !

    Reply
    • Emmanuel Simasiku

      The one who brought Privatisation was DR FREDERICK CHILUBA. Who else can someone think of? Unless a person full of madness in them can say that.

      Reply

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