ZCCM IH Announces Gold Processing Joint Venture; Mabvuto Chipata sets the tone for his inaugural AGM as CEO
Finance, ZCCM-Investment Holdings Plc

At the epilogue of 2019, ZCCM IH and Karma Mining Services & Rural Development Company signed a Joint Venture that will see the investment group further cement its case as an investor in mining services, according to a statement from the group.

On 23 December 2019, the Board of Directors of ZCCM-IH approved the proposal to enter into a Joint Venture (JV) partnership with Karma Mining Services and Rural Development Company (“Karma”)”, read a statement issued by the group’s Company Secretary, Chabby Chabala on Friday 27th December 2019 and issued on SENS.

According to the investor relations press statement, the sole purpose of the venture is to develop the processing of gold in Zambia. “The purpose of the JV is to develop a gold processing and trading operation in Zambia”.

The process of gold extraction is a laborious one. According to Geology.com, “Gold extraction refers to the processes required to extract gold from its ores and may require a combination of comminution, mineral processing, hydrometallurgical, and pyrometallurgical processes to be performed on the ore”

This is why ZCCM IH chose to make the joint venture, as opposed to building its own outfit from scratch. By so doing, the group has found a way of combing its desires of growing its investment portfolio and bringing credibility to the small scale miners who will see themselves as part of the “gold value chain”.

Initially, the JV will source most of the gold ore from Artisanal and Small-Scale Gold Miners”. Further read the statement. “Under the JV, ZCCM-IH and Karma will have 45% and 55% shareholding, respectively”.

This JV is a masterstroke for CEO Mabvuto Chipata who faces investors of the company on Tuesday 14th January 2020 at the investment group’s Annual General Meeting (AGM) where he will not only deliver gold news but also a dividend for the financial year ended 2019. “The operation of the Project will accord ZCCM-IH an opportunity to immediately participate in the value chain of the gold sector. In addition, this investment is in line with one of ZCCM-IH’s strategic objectives in mining value creation”.

Mabvuto Chipata who headed the investment division of ZCCM IH prior to taking over the leadership of the group has a keen eye for investment. The JV with a company with years of experience in the sector proves the focus that his management team has in delivering results.

Karma is a company incorporated in Zambia in December 2018. With over 20 years of experience in gold processing, the promoters of Karma i.e. the Karma team, have developed several gold processing, production and trading operations all over Sudan”.

Mabvuto Chipata has the full backing of the board on this venture. “The ZCCM-IH Board is confident that the JV, once operational, will add value to the Company’s portfolio and provide an opportunity for ZCCM-IH to expand its activities in the mining sector”.

All eyes will now be focused on Tuesday’s AGM as Mabvuto Chipata delivers his maiden CEO Speech. Investors in the company can access the Annual Report for 2019 here.

Sharing is caring!

(Visited 197 times, 1 visits today)
The information contained on this website is for general information purposes only. While we endeavour to keep the information as accurate as possible, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or subject companies or matters contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
 right-arrow   right-arrow