Govt ‘negligently’ gives up control of Kasenseli gold mine

By Amb. Emmanuel Mwamba

The case of Kasenseli Gold Mine, one of the biggest gold discovery recently, is worrying. It appears Government is not keen to defend ZCCM-IH’s interest and stake in the mine.

Below is the Report;

Govt ‘negligently’ gives up control of Kasenseli gold mine

Government through ZCCM – IH and it’s subsidiary Zambia Gold Company – ZGC has ‘negligently’ lost out on the control and stake in Mwinilunga’s Kasenseli gold mine to PCB mining by failing to first of all, diligently defend its interest and pay a revenue share and secondly, by failing to appeal an adverse judgement within the stipulated time.

This now means that the plans for Zambia through the Bank of Zambia – BOZ to establish an alternative and viable gold reserve to the elusive US dollar reserves, is effectively derailed and once more abandoned.

According to the judgment seen by the Zambian Business Times – ZBT, the Court to Appeal has dismissed an application for leave to appeal on the basis that ZCCM – IH leave of appeal has fallen off since it has been made beyond the stipulated 30 days and that even the 21 days after the 30 days in which to apply for an extension of time had also been breached.

It is the fact the Government through ZCCM – IH did not bother to make the appeals in 30 days or even take advantage of the 21 days extension that accusations of deliberate negligence are being leveled.

According to the earlier judgement, ZCCM – IH and its Subsidiary Zambia Gold Company would have engaged in having a negotiated settlement with PCB mining but all these avenues have not been taken advantage of, which will now result in not only complete loss of the mine, but payment of revenue shares with interest to PCB mining.

Perhaps the only consolation is that PCB mining is owned by Zambian businessmen with its key Director’s and shareholders that include Caleb Mulenga, the founder of Superior Milling who also served as Chairperson of Access Bank Zambia board of directors and Lukonde Makungu, who is the Executive Director of PCB mining.

Illegal mining of gold, lack of adherence to a Memorandum of Association between ZCCM – IH and PCB mining, accusations of ZNS officers guardian the gold mine site of allowing illegal ‘night shift’ mining and the deep allure of gold have been blamed for Zambia to once again fail to establish a credible gold reserve which was seen as an alternative lever for government to use to defend the Kwacha from perpetual depreciation.

Efforts to get a comprehensive comment from ZCCM IH were still underway by time of publishing.