Zambia Launches Gold Venture to Formalise Artisanal Mining and Expand Processing

Zambia is intensifying efforts to formalise its gold sector after state-controlled ZCCM Investments Holdings announced the creation of a new joint venture aimed at developing gold mining and processing operations in the country’s North-Western Province.

The new company, Kyalo Goldfields, was incorporated on May 6 and will focus on formalising artisanal mining activities in the Kikonge region, an area that experienced a major gold rush during 2025 as soaring global gold prices attracted thousands of informal miners.

Under the agreement, ZCCM Investments Holdings will hold a 51% controlling stake in the venture, while the remaining shareholding will belong to Mining Mineral Resources, a Democratic Republic of Congo-based mining group involved in gold and critical minerals operations.

According to ZCCM, the venture will support safer and more regulated artisanal mining practices while introducing mechanised gold production systems and local mineral processing infrastructure.

The move forms part of Zambia’s broader strategy to strengthen its gold value chain and reduce dependence on informal mining activities that have historically contributed to smuggling and lost government revenues.

The Kikonge region became the centre of intense mining activity from mid-2025 after reports of gold discoveries triggered a rush of artisanal miners into the area. Authorities later deployed security forces to restore order and clear illegal mining operations.

Officials believe formalising the sector could improve environmental management, worker safety and state oversight while creating opportunities for local beneficiation and job creation.

Mining Mineral Resources brings regional mineral processing experience into the partnership. The company operates in the Democratic Republic of the Congo across gold, tin, tantalum and tungsten projects and is linked to another consortium that recently helped establish Congo’s first state-backed gold refinery.

Zambia’s latest initiative reflects a growing trend across Africa, where governments are increasingly seeking to formalise artisanal mining sectors and expand local processing capacity to capture more value from mineral resources.

As global gold prices remain elevated and competition for strategic minerals intensifies, African producers are accelerating policies focused on beneficiation, traceability and state participation in mining supply chains.