First Quantum Minerals (FQM) Kansanshi Mine produced 128,000 ounces (about 3,630 kilograms) of gold in 2020 valued at about US$218 million at current market prices.
According to the the FQMs Preliminary Production data and 2021-2023 projections shared with the Zambian Business Times – ZBT, the solwezi based Mine however recorded an overall reduction in its gold production.
Kansanshi mine gold production dropped by 17,000 ounces (about 12%) from the high of 145,000 ounces in 2019 to 128,000 ounces in 2020. Kansanshi mine also posted a drop in copper production in 2020, which has been blamed on low grade and low oxide recoveries.
The Bank of Zambia had announced that it had signed a deal with FQM to buy gold from the Mine to boost its copper reserves. However, the central bank is yet to disclose its projected gold buying quantities from Kansanshi mine.
With the already announced plans that BOZ plans to buy about 600kgs from the Zambia Gold Company in 2021, the central bank could further boost its gold reserves more aggressively if it buys more gold from the already established gold producers in Zambia such as Kansanshi.
Zambia is now officially a gold producer with total annual production from just two gold mines (Kansanshi and Kasenseli) valued at over US$250 million. As more gold mines start to officially declare their numbers, the diversification within the mining industry is now more realistic goal with Copper and Gold leading the volumes and values.
