Zambia’s cumulative refined gold reserves as at end of October 2022, stands at 46,200 ounces (about 1,438 kilograms) with a total purchase value of US$83 million (about K1.5 billion).
The Central bank, the Bank of Zambia – BoZ which holds Zambia’s reserves, is projected to purchase about 25,000 ounces (about 780 kgs) of Gold before the end of 2022. BoZ says as at end of October 2022, the Bank had purchased 21,000 ounces (654.2kg) of refined Gold.
In an emailed note to the Zambian Business Times-ZBT, BoZ Communications Assistant Director Besnat Mwanza, explained that the central bank purchases refined gold from Kasanshi Mining Plc on a monthly basis.
She told ZBT that as at end of October 2022, the cumulative purchase of refined gold stood at 46,200 ounces (1,438 kgs) with a total purchase value of US$83 million (ZMW1.5 billion) since inception in January 2021.
When asked what BoZ is doing to encourage buying of gold from local miners who make up the majority of the small scale miners? Mwanza disclosed that the National purchase program of gold from artisanal miners is a framework that has been developed by Government, stating that the role of the Bank of Zambia will be clearer once the framework is finalized and rolled out.
“This is a government initiative which is under development through the Ministry of Mines to formalise and support small scale mining in the gold sub-sector.” She added.
Mwanza however said the Central Bank will continue to purchase gold from First Quantum Minerals – FQM’s Kansanshi Mine where the highest amount of gold is expected to be purchased from.
Analyst say ZCCM-IH owned Zambia Gold Company indefinite closure remains a blocker to the further growth of gold mining in Zambia. The Ministry of mines continued to kick the can down the road and it’s now about 1 year that the rich gold mine has been closed.
“As provided for in the Bank of Zambia BoZ act, BoZ is permitted to hold Gold as part of the country’s international services. In this regard, the Bank will continue to purchase Gold as this initive will help to build the level of international reserves.” BOZ told ZBT.
Mwanza said the inclusion of Gold to the reserves portfolio is further intended to diversify the asset mix in the international reserves portfolio.
Bank of Zambia Governor Dr. Denny Kalyalya has been challenged to use the current opportunity of locally existing gold to stockpile gold reserves to a size-able value of over $1 billion to have an alternative lever to fall back on in an event of steep drop in global commodity prices with Zambia still dependent on copper exports accounting for over 70% of total exports. See earlier articles on .Zambia Gold reserves build up derailed
