Over $15 million lost over closure of Kasenseli gold mine
Zambia is losing over $10 million per annum in forex due to lost production hours and revenues following the indefinite closure of the Kasenseli gold mine in Mwinilunga, North Western Province.
Revelations indicate that during the first full year of the mine’s operation (from approximately June 2020 to October 2021), it produced a total of about 143 kilograms of gold worth over $10 million.
However, it has been over 18 months since the government suspended operations at the gold mine, and no definite decision regarding its reopening or the way forward has been made.
Indecision appears to have crept in, causing the country to continue losing out on this project.
According to a source familiar with the initial production figures at the Kasenseli gold mine, a total production of about 143 kilograms of gold was achieved in the first year of operations.
The Kasenseli gold mine was able to reach a production of 143 kilograms of gold in its first year, a number that could have doubled or even quadrupled if production and investment plans had not been discontinued.
The source informed the Zambian Business Times – ZBT that the Bank of Zambia – BOZ had purchased about 110 kilograms of gold worth over K128 million, while 33 kilograms worth approximately $1.8 million was exported.
Jonathan Chinyimba, the chairperson of the Mwinilunga Town Council, has called on President Hakainde Hichilema to make a decision so that the mine can resume operations. Both the province and the central government desire to see the much-needed development.
Chinyimba stated to ZBT that Mwinilunga possesses a significant amount of minerals, and he urges the government to open one or two more mines to generate revenue and create job opportunities in the district.
On October 22nd, 2021, a letter signed by Mooya Lumamba, the former Director of Mines and Safety in the Mines Safety Department of the Ministry of Mines, temporarily suspended mining and processing operations at the Kasenseli gold mine, citing disorder at the mining site.
However, the temporary closure has now extended, leaving the residents of Mwinilunga wondering why the issue is not being prioritized.
SOURCE:https://zambianbusinesstimes.com
