ZCCM-IH Partners Government and MMR on New Gold Project
ZCCM Investments Holdings Plc (ZCCM-IH) has signed a Memorandum of Understanding (MoU) with the Ministry of Mines and Mineral Development (MOMMD) and Mining Mineral Resources SAS (MMR) to collaborate on the development of a gold exploration and mining project in the Kikonge area of Mufumbwe District, North-Western Province.
In a transaction announcement approved by the Lusaka Securities Exchange (LuSE) and the Securities and Exchange Commission of Zambia (SEC), ZCCM-IH said the partnership will focus on exploring and developing the Kikonge Mining Tenement, which spans parts of Mufumbwe and Kasempa districts, alongside the establishment of gold processing facilities.
Under the collaboration, ZCCM-IH and MMR will undertake exploration and mechanised mining operations, while also supporting the formalisation of artisanal and small-scale mining (ASM) activities to ensure safe, secure, and regulated gold production. All gold produced under the project will be sold through ZCCM-IH under an offtake agreement, positioning the company as the exclusive gold off-taker.
ZCCM-IH said the partnership represents a significant milestone for Zambia’s gold sector, aiming to strengthen the country’s gold value chain through local refining, structured ASM integration, and enhanced community participation.
The proposed joint venture will have a shareholding structure of 51% for ZCCM-IH and 49% for MMR, with the project expected to be funded primarily through shareholders’ equity. Further details on funding arrangements, project milestones, and investment categorisation will be communicated once the detailed project scope and budget have been finalised, in line with LuSE Listings Requirements.
As part of the project, ZCCM-IH and MMR plan to implement a comprehensive Corporate Social Responsibility (CSR) programme, including infrastructure development, access to clean water, skills training for artisanal miners, and environmental initiatives such as reforestation and sustainable land-use practices.
The Ministry of Mines and Mineral Development will retain its regulatory oversight role, ensuring that all mining activities are conducted lawfully, transparently, and in accordance with Zambian mining regulations.
MMR, the mining division of the Vinmart Group, is a vertically integrated mining and smelting company founded in 2009 in the Democratic Republic of the Congo, with operations focused on tin, tantalum, tungsten, and gold.
ZCCM-IH advised shareholders to exercise caution when trading in the company’s securities until further announcements are made.
