Zambia is known for its rich mineral resources, with copper as the most relied upon mineral. But the discovery of gold in Zambia has become a game changer for the country’s economy.
In a statement made available to Zambian Business Times – ZBT, Centre for Trade Policy and Development (CTPD) Senior Researcher Webby Banda has advised ZCCM-IH to align its gold trading practices to Organization for Economic Cooperation and Development (OECD).
“In as much as this is progressive, the Centre for Trade Policy and Development (CTPD) is urging ZCCM-IH to align its Gold trading practices to the Organization for Economic Cooperation and Development (OECD) due diligence guidelines on responsible mineral supply chains. The guidelines are simply guidance on how to undertake a supply chain due diligence of Gold potentially sourced from conflict-affected and high-risk areas.
The purpose of these guidelines will be to allow ZCCM-IH scrutinize the source of the Gold bought. This is to ensure that its buying process is not promoting human rights abuses and conflict in the supply chain of Gold potentially sourced from conflict-affected and high-risk areas”, he said.
Gold is easily transported and malleable. These properties make it easy for illegal dealers to melt and recast Gold with that which is mined domestically. This subsequently masks the origin of the illicit Gold. When this happens, Zambia will be seen as cumulatively perpetuating instability in high conflict countries from where this illicit Gold is sourced.
“According to the OECD guidelines, artisanal and small-scale Gold producers such as individuals, informal working groups or communities are not expected to carry out due diligence but they are encouraged to remain involved in due diligence efforts of their customers. They must be encouraged to formalize so they can carry out due diligence in the future”, he said.
Zambia has recently discovered notable gold deposits in North western, Central, eastern and parts of central provinces.
