As Zambia continues to lose millions of US dollars in lost production hours and revenues, the indefinite closure of Kasenseli gold mine has also put the build up of gold reserves by the central bank – BOZ in disarray, contributing to the current streak of the Kwacha depreciation.
A check by the Zambian Business Times – ZBT with the Zambia Gold Company Limited, the special purpose company set up to exploit gold reserves in Zambia has revealed that the date of re-opening of the gold mine is still a mirage.
Analysts say the prolonged closure of the mine by new mines minister Paul Kabuswe is resulting in lost revenue for the country. Building up of gold reserves was also signaling to currency speculators that the government of Zambia was stocking up an alternative war chest of assets to defend the Kwacha.
A further review by ZBT on the exchange rate shows that the Kwacha is again on a depreciating streak is is now trading for about K18.5 to the US dollar, coming from a lower base of about K16.1 to a dollar in the last four months.
The Zambia Gold Company disclosed that discussions concerning the future of Kasenseli Gold Mine, which is located in Mwinilunga district North Western province are still ongoing and whether operations at the mine will resume is dependent on the conclusion of the discussions.
Company Public Relations Manager Mathews Liyani said there is no agreed target date as to when the discussions will be concluded but once discussions with all the key stakeholders involved are concluded, the future of the mine will be decided.
Speaking in an exclusive interview with ZBT, Liyani said the company produced about 130kgs of gold since operations started at the mine in June 2020.
“Negotiations are going on and depending on how long it takes to conclude these negotiations with all the stakeholders,we might open the mine soon if the negotiations finish tomorrow,we will open tomorrow. The minister is consulting all stakeholders “, he said.
He noted that production at Kasenseli mine used to fluctuate depending on the conditions and the area the company was mining from at a particular time, adding that production was low during the rainy season because the area has too much rain which made Mining more challenging.
Liyani said from what was produced, the company sold about 110kg to the Bank of Zambia (BOZ) and still has the rest from the total production.
He explained that the first gold sale to the central bank was on 31st December 2020, which was 48kg worth about K59 million, the second sale was 20kg for the price of about K25 million, the third sale involved 17kg worth about K18 million and the fourth sale which happened in July 2021 was worth K24 million and involved 23kg.
Liyani revealed that everything that was produced from Kasenseli gold mine was being bought by the Bank of Zambia.
