ZCCM Investments Holdings (ZCCM-IH) has announced a new joint venture aimed at expanding Zambia’s gold sector, as the country looks to reduce its heavy reliance on copper and broaden its mineral base.
The state investment firm has partnered with Mining Mineral Resources to establish Kyalo Goldfields Limited (KGL), a new entity incorporated on May 6. The venture will focus on the exploration, development and mining of gold in the Kikonge Mining Area, located in Zambia’s North Western Province.
Under the agreement, ZCCM-IH will hold a 51% controlling stake in KGL, while Mining Mineral Resources will own the remaining share. The partner company already has regional experience, mining and processing tin, tantalum and tungsten in the Democratic Republic of Congo.
The move signals a strategic shift for Zambia, Africa’s second-largest copper producer, which has long sought to diversify its mining sector to reduce exposure to fluctuating copper prices. Gold has emerged as a key target in that strategy, particularly in underdeveloped regions with significant untapped potential.
ZCCM-IH said the new venture will also play a role in formalising artisanal and small-scale mining activities in the Kikonge area. Informal mining has been widespread in parts of Zambia, often operating outside regulatory frameworks and raising concerns around safety, environmental impact and lost revenue.
By bringing these activities into a structured system, KGL aims to improve working conditions, ensure compliance with mining regulations and increase state oversight. The company also plans to invest in processing infrastructure, allowing more value to be retained within Zambia rather than exporting raw materials.
Chief Executive Kakenenwa Muyangwa described the project as a “meaningful step” in expanding ZCCM-IH’s diversified minerals portfolio, adding that it reflects tangible progress toward developing a sustainable gold industry.
Initial operations will be funded through shareholder contributions, with additional financing options to be considered as the project advances. ZCCM-IH said it is currently working on a detailed project scope and budget, which will determine the full scale of investment required.
The initiative comes at a time when African mining economies are increasingly looking to diversify both commodities and value chains, seeking greater resilience and higher returns from their natural resources.
If successful, the Kikonge project could position Zambia as a more significant player in regional gold production, while strengthening its broader mining ecosystem.
