The Economic Association of Zambia (EAZ) says ZCCM-IH’s organization of gold mining in the country is contrary to the government’s policy on empowering Zambians and also ensuring that mineral resources benefit locals.
Association President Lubinda Habazoka told Money FM News that EAZ cannot support the ZCCM-IH’s joint venture with Array Metals, a global mining firm to open a gold company with shares only at 51%.
Dr Habazoka said the Association cannot also support outsourcing gold processing in a joint venture with a foreign company adding that it will be pointless to declare gold a strategic asset when it benefits foreign nationals.
“EAZ cannot support a ZCCM IH’s venture to open a gold company with shares only at 51%. We cannot also support outsourcing gold processing in a joint venture with a foreign company. Joint ventures with foreign firms have failed in the mining industry,” Dr Habazoka said.
He stated that EAZ shall seek to meet ZCCM-IH to ensure that gold is purely for Zambians, further calling on technocrats to advise policymakers correctly.
“We, therefore, advise ZCCM IH to pause any collaboration until they listen to various stakeholders,” he stated.
Yesterday, ZCCM Investments Holdings (ZCCM-IH) announced that it has entered into a joint venture partnership with Array Metals, a global mining firm to process gold ore in Mumbwa, west of Lusaka through its subsidiary Consolidated Gold Company Zambia (CGCZ).
According to ZCCM-IH, an initial investment of approximately 2.5 million dollars will be invested in the first stage of the project and will go towards the setting up of a gold wash plant and other mining machinery to mine and process placer gold raw material.
CGCZ will hold a 65% stake and Array Metals Zambia will have 35% in the project, with an initial phase targeted gold production of about 3 tonnes, worth approximately 150 million dollars at current prevailing market prices.