Zambia is accelerating efforts to strengthen its gold sector through a newly established joint venture aimed at formalising artisanal mining activities and expanding domestic processing capacity.
The state-controlled mining investment company, ZCCM Investments Holdings (ZCCM-IH), has entered into a partnership with Mining Mineral Resources (MMR) to form a new gold-focused entity known as Kyalo Goldfields Limited (KGL).
The move marks another strategic step in Zambia’s broader ambition to diversify its mining industry beyond copper and unlock greater value from its growing gold resources.
New joint venture structure and mandate
Under the agreement, ZCCM-IH will hold a 51% majority stake, while MMR will control the remaining 49%.
Kyalo Goldfields Limited was officially incorporated on 6 May 2026, and will focus on exploration, development, and mining of gold resources in the Kikonge Mining Area in Zambia’s North-Western Province.
The region has recently experienced increased informal gold activity, prompting government-backed interventions to improve regulation, safety, and revenue collection.
Formalising artisanal and small-scale mining
A central objective of the new venture is to bring structure to Zambia’s largely informal gold mining ecosystem.
KGL is expected to:
- Integrate artisanal and small-scale miners into formal supply chains
- Improve safety standards in mining operations
- Reduce illegal and unregulated gold trading activities
- Strengthen oversight of production in high-activity gold zones
This formalisation drive aligns with Zambia’s wider mining reform agenda, which seeks to convert informal mining activity into regulated, taxable, and environmentally responsible operations.
Expanding local gold processing capacity
Beyond mining, the joint venture will also invest in processing infrastructure, a critical gap in Zambia’s gold value chain.
By developing local processing capabilities, the project aims to:
- Increase domestic value retention
- Reduce reliance on external processing hubs
- Improve efficiency in gold recovery and refining
- Support long-term industrialisation of the mining sector
This focus reflects a growing regional trend across African gold-producing nations to move beyond raw mineral exports and invest in downstream beneficiation.
Strategic importance for Zambia’s mining sector
ZCCM-IH has described the Kikonge project as a significant milestone in its mandate to broaden Zambia’s mineral portfolio.
The partnership with MMR—an operator active in tin, tantalum, and tungsten mining in the Democratic Republic of Congo—also introduces technical expertise that could support more modernised extraction and processing methods.
Industry observers see the venture as part of Zambia’s broader push to:
- Diversify away from copper dependency
- Capture more value from gold production
- Strengthen state participation in strategic mineral assets
- Formalise artisanal mining economies that have expanded in recent years
Funding and next steps
Initial funding for Kyalo Goldfields Limited will come from shareholder contributions. Additional financing structures are expected to be developed as project planning advances.
ZCCM-IH is currently preparing a detailed project scope and budget, which will determine the total investment required for full-scale development.
Once operational, the venture is expected to play a key role in shaping Zambia’s emerging gold industry and formalising production in one of its most active artisanal mining regions.
