Kasenseli gold mine, which will be operated by ZCCM Gold Company has been caught up in government bureaucracy with full scale gold mining still awaiting licensing and environmental clearance.
Despite this project having a critical role in bolstering Zambia’s finances that could see the country open up a credible US dollar earning power other than from the traditional copper, the much hyped ‘gold rush’ had been caught up in the lethargy of the slow wheels of government agencies and their staff.
In a statement made available to the Zambian Business Times – ZBT, ZCCM IH confirmed that the mining and processing of the alluvial (surface) gold is pending approval of the Environmental Project Brief (EPB) by the Zambia Environmental Management Authority (ZEMA), and the subsequent granting of the mining license by the Ministry of Mines.
ZCCM IH has already injected approximately K45 million for the initial phase of the Kasenseli Gold Mine Project in Mwinilunga district of North Western Province. The gold was also envisaged to help bolster the establishment of gold reserves which would aid in boosting the country’s forex reserves.
ZCCM- IH Chief Executive Officer Mabvuto Chipata has disclosed that the Gold company moved on site and started mobilisation in the first week of April 2020 to undertake detailed exploration that will determine the extent of gold mineralisation in the license area. He confirmed that the gold company has been granted the exploration licence by the Ministry of Mines and Minerals Development end of March 2020.
According to a statement made available to ZBT by ZCCM-IH Public Relations Manager Loisa Kakoma on April 27, 2020, Chipata said the extensive exploration works which includes geophysics, geochemistry and diamond drilling activities are aimed at delineating the hard-rock (underground) gold deposit in the license area.
“The capital injection will also go towards the fencing of the license area to avoid and prevent any intrusion from outsiders. Over 40 locals will be employed in the fencing exercise scheduled to start this week. The fence is an additional security measure to the state security that is already on the ground and keeping vigil, patrolling the area to wade off any illegal activities,” He said
Speaking during a courtesy call on Chief Chibwika early April, ZCCM-IH Chief Executive Officer Mabvuto Chipata indicated that it has taken a bit of time to start the operations at the mine due to a number of statutory and regulatory approvals that are required.
Chipata further said that ZCCM-IH is a listed entity and cannot start any operations without obtaining the necessary and required approvals hence the firm is required to comply with best corporate Governance practices as required by the Lusaka Securities Exchange – LuSE listing rules, the Mines and Minerals Development Act, the Zambia Public Procurement Authority Act, and the Zambia Environmental Management Authority Act.
Commenting on the coming on board by ZCCM-IH gold company, Chief Chibwika has expressed happiness that this will help address the challenges they have been facing in the area with regards to security and the need for development in the area and the district.
He appealed to ZCCM Gold company that preference should be given to the local community in terms of jobs and local participation in the supply of various goods and services adding that there is a lot of expectation from the local community with the coming of ZCCM Gold.
ZCCM-IH through ZCCM Gold has been mandated to drive the national gold agenda, working in collaboration with the Ministry of Mines and Minerals Development and other stake holders.
ZCCM Gold is undertaking and overseeing all gold related investments throughout the gold value chain in the country including exploration, mining, processing, refining, marketing, trading and beneficiation in Zambia.
Last week, President Lungu recalled North Western Province police commissioner over the deteriorating security situation in the province as well as cited the lack of security at the Kasenseli gold mine.
Economic Association of Zambia President Lubinda Habazoka accused officers handling the gold mining establishment at Kasenseli as well as those at the bank of Zambia – BOZ who are charged to establish gold reserve system of failure to timely implement clear cut and game changing policies.
The Zambian Business Times – ZBT exclusively reported that BOZ would start buying gold in Kwacha and establish gold bullion reserves late last year in 2019, and this is still not implemented now four to five months down the road.
