Zambia’s Mining Industry Strikes Gold
Thanks to the abundance of mineral deposits in Zambia, investors have continued to flock to the country in spite of the pandemic-fueled economic downturn in many parts of the world. By deeming gold a critical mineral, the government is actively expanding Zambia’s mining industry by mandating that Zambia Consolidated Copper Mines Investment Holdings PLC (ZCCM-IH), a mining consortium, “drive the gold national agenda.”
Productive Mining Partnerships
Zambia’s government is a major investor in ZCCM-IH. Array Metals and ZCCM-IH have formed a partnership through Consolidated Gold Company Zambia (CGCZ). Array Metals determined that the venture will immediately generate local employment for 300 people. Mining is expected to commence sometime in June 2020 and will lead to another increase in employment. The establishment of new and competing mining firms will be beneficial for Zambia by encouraging a rise in gold production, increasing the national GDP and creating new opportunities for local employment.
Potential Profits from Gold Mining
With an approximation of 16,500 pounds of gold (around $400 million in value) within gold ore in Mumbwa, Zambia, continued investments in the Republic of Zambia are indicative of an economically auspicious future for the country. The gold mine is situated in Central Province, Zambia, and had been shut down for years before exploratory studies revealed the previously undiscovered resources within.
Roughly $2.5 million in capital has been devoted to the beginning portion of the project alone, with CGCZ aiming for an initial yield of 3 metric tons of gold (about $150 million in value).
How Zambia is Improving the Local Gold Mining Industry
According to CGCZ’s CEO Faisal Keer, “CGCZ is partnering with various small-scale gold miners in the country by providing mining technical expertise, and providing access to earthmoving machinery and gold processing lines to kick-start and boost their gold production.”
Since the majority of local miners mine through the process of gold panning, one focus of another partnership between ZCCM-IH and Karma Mining Services is to improve Zambia’s local gold mining efficiency. While CGCZ is only operating in the Mumbwa and Rufunsa districts of Zambia, there are more than 60 sites for gold mining. Local miners have also partnered with other foreign investors.
Although there is no official documentation, some have profited off illegally mining and smuggling gold out of Zambia. The government’s newfound focus on Zambia’s local gold mining has the perk of bringing lawfulness to a previously unformalized industry. In that spirit, the “government has given artisanal miners gold panning certificates to legalize their alluvial or riverbed gold mining activities.”
By supplying licensed miners with machinery, equipment, and knowledge about the industry through ZCCM-IH and CGCZ, Zambians are encouraged to participate in Zambia’s local gold mining. The formalizing of the gold mining industry will benefit more than Zambia, for it will enable licensed miners and locals to “reap the benefits of the assets under Zambian soil.”
– Carlos Williams