ZCCM-IH Forms Gold Development Joint Venture for Kikonge Project in Zambia

ZCCM-IH Launches Kyalo Goldfields JV to Develop Kikonge Gold Project and Expand Zambia’s Gold Value Chain

ZCCM Investments Holdings Plc (“ZCCM Investments Holdings Plc”) has announced a major step forward in its gold sector expansion strategy following the incorporation of a new special purpose vehicle, Kyalo Goldfields Limited (“KGL”), to develop the Kikonge gold project in Zambia’s North Western Province.

The announcement follows a memorandum of understanding signed on 19 December 2025 between ZCCM-IH, the Ministry of Mines and Mineral Development (“MOMMD”), and Mining Mineral Resources SAS (“MMR”) for the development of a gold exploration and mining project in the Kikonge area of Mufumbwe District.

Formation of Kyalo Goldfields Limited

The parties have now formally incorporated Kyalo Goldfields Limited on 6 May 2026 as the dedicated vehicle to drive exploration, development, and eventual mining of gold resources within the Kikonge Mining Area.

KGL is structured as a joint venture between ZCCM-IH and Mining Mineral Resources SAS, with shareholding split as follows:

• ZCCM-IH: 51%
• Mining Mineral Resources SAS (MMR): 49%

The incorporation marks the transition from agreement to implementation, establishing a structured platform for project execution.

Project Scope and Operations

Kyalo Goldfields Limited will oversee the full mining value chain, including:

• Exploration and development: Conducting detailed geological studies and advancing mining tenements toward production.
• Mining operations: Implementation of mechanised mining activities aligned with international best practices.
• Artisanal and small-scale mining (ASM) integration: Formalising ASM activities to ensure safe, regulated, and compliant gold production.
• Processing and value addition: Developing gold processing infrastructure to increase domestic value retention in Zambia.

The project is expected to operate under a commercially disciplined framework consistent with international standards for mining governance, environmental management, and social responsibility.

Strategic Importance for Zambia’s Gold Sector

The establishment of KGL represents a strategic milestone in ZCCM-IH’s broader objective of expanding its presence in the gold industry and strengthening Zambia’s domestic mineral value chain.

Key expected benefits include:

• Expansion of local gold refining and processing capacity
• Improved formalisation of artisanal mining activities
• Enhanced community development through structured corporate social responsibility programmes
• Support for a more sustainable and regulated gold mining ecosystem in Zambia

Funding and Regulatory Oversight

Initial funding for KGL will come from shareholder contributions, with additional financing mechanisms to be developed as the project progresses.

ZCCM-IH is currently finalising the detailed project scope and budget. The final classification of the investment under Section 9 of the Lusaka Securities Exchange (LuSE) Listings Requirements will be determined once this process is completed.

The Ministry of Mines and Mineral Development will maintain regulatory oversight of all mining activities to ensure compliance with Zambian mining laws and environmental regulations.

Management Commentary

ZCCM-IH Chief Executive Officer Kakenenwa Muyangwa described the Kikonge project as a key milestone in the company’s diversification strategy:

“Kikonge is a meaningful step in broadening ZCCM-IH’s diversified minerals portfolio and represents tangible progress in delivering on our mandate to formalise and develop Zambia’s gold sector.

We are taking a controlling position in a project with strong geological potential, alongside an experienced operating partner.”

He added that the project will help formalise artisanal mining and strengthen domestic refining capacity, aligning with the company’s long-term strategic priorities.

Further updates on funding arrangements, project milestones, and implementation timelines will be communicated to the market as the project advances in line with regulatory requirements.

ZCCM-IH has advised shareholders to exercise caution when dealing in the company’s securities until further disclosures are made.

About ZCCM-IH and MMR

ZCCM Investments Holdings Plc is Zambia’s state-owned investment company with a mandate to manage and develop strategic mining and energy-related assets on behalf of the government.

The firm plays a central role in advancing diversification within Zambia’s extractive sector, particularly in copper, gold, and emerging minerals.

Mining Mineral Resources SAS is a privately held mining company headquartered in the Democratic Republic of Congo. The company is engaged in mineral exploration, extraction, and processing activities, with operational experience across industrial and battery metals including tin, tantalum, and tungsten.