Zambia Launches New Gold Mining Venture to Reduce Dependence on Copper
ZCCM Investments Holdings has launched a new gold-focused joint venture as Zambia intensifies efforts to diversify its mining sector beyond copper.
The state-owned investment company announced the creation of Kyalo Goldfields Limited (KGL), a new firm established to explore and develop gold resources in the Kikonge Mining Area located in Zambia’s North-Western Province.
The move marks a significant step for Africa’s second-largest copper producer as it seeks to expand into other mineral resources and reduce overreliance on copper, which has long dominated the country’s economy.
According to ZCCM-IH, KGL will focus on evaluating gold deposits in the region while also formalising artisanal and small-scale mining activities to ensure safer and more regulated gold extraction operations.
The company added that the project will include the development of processing infrastructure aimed at increasing value retention within Zambia rather than exporting raw mineral resources.
Speaking on the initiative, ZCCM-IH Chief Executive Officer, Kakenenwa Muyangwa, described the project as a major milestone in the company’s diversification strategy.
“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,” Muyangwa said.
Under the partnership arrangement, ZCCM-IH will retain a controlling 51 per cent stake in Kyalo Goldfields Limited, while the remaining shares will be held by a partner company with experience in mining and processing tin, tantalum and tungsten in neighbouring Democratic Republic of the Congo.
The company disclosed that the project will initially be funded through shareholder contributions, while additional financing options are still being considered as operations progress.
“Upon completion of this process, the company will have clarity on the investment amount,” ZCCM-IH stated.
The development comes amid growing efforts by African governments to increase local participation and ownership in the mining sector.
ZCCM-IH already holds minority stakes in several major mining operations run by foreign firms, including First Quantum Minerals and Vedanta Resources.
The company is also reportedly exploring opportunities to increase its ownership in other mining assets within Zambia through commercial agreements rather than forced acquisitions.
Industry observers say the latest move signals Zambia’s broader ambition to strengthen domestic control over its mineral resources while expanding into new areas such as gold mining and mineral processing.
