Zambia forms gold venture to formalize mining, build processing

Zambia’s state-controlled mining investment firm has formed a joint venture to formalize the artisanal gold trade in a region of the southern African country.

ZCCM Investments Holdings Plc said on Monday it will hold 51% of Kyalo Goldfields Ltd.’s shares, while Mining Mineral Resources Sprl will own the rest. The new vehicle, which was incorporated on May 6, will operate in a part of North-Western Province that was the site of a disorderly gold rush that began last year.

Kyalo’s key activities will include supporting the formalization of safe artisanal mining in the Kikonge area, as well as introducing more mechanized gold production and developing processing capabilities, ZCCM said.

The joint venture “represents a key step in ZCCM-IH’s strategy to expand its footprint in the gold sector and strengthen Zambia’s gold value chain,” according to the company’s statement.

Thousands of people descended on Kikonge from mid-2025 to dig for the precious metal that’s experienced a record-breaking rally in recent years. Security forces intervened to clear artisanal miners from the site.

MMR is headquartered in neighboring Democratic Republic of Congo where, in addition to gold, it specializes in mining and processing tin, tantalum and tungsten.

Another firm in the same conglomerate is already a shareholder in a joint venture that launched Congo’s first state-backed gold refinery in March.

Both Zambia and Congo are trying to capture more value from a trade historically linked to smuggling, which deprives governments of tax revenues.

(By William Clowes)