ZCCM Investment Holdings has targeted to buy 40 tonnes of gold from both primary and secondary sources following its pronouncement to start buying gold from artisanal and small-scale gold miners across the country.
This initiative if well managed and expanded will go a long way in injecting cash back into the local economy and effectively contribute to wealth creation for local, small scale and artisanal miners. This effectively provides an additional source of liquidity for the local economy and a direct way to remit back export proceeds from eventual gold sales.
In an advisement circulated on March 6, 2019, ZCCM–IH announced that it is providing an open market and competitive prices for the gold sellers in a bid to formalize the small scale and artisanal gold mining in Zambia.
The state owned mining investments firm has since set aside a budget of US$ 23 million for this exercise for the year 2020 and have started purchasing gold in Rufunsa and intends to include Vubwi, Mumbwa and Luano in the coming days and months.
Speaking at a press briefing in Lusaka on March 11, 2020, attended by the Zambian Business Times – ZBT ZCCM-IH Chief Executive Officer Mabvuto Chipata said ZCCM-IH, Ministry of Mine and Ministry of Home Affairs personnel were deployed to eight gold mining and panning sites across the country to undertake a scoping exercise.
He added that the Company’s move to start buying gold has been received favourably by artisanal miners and it is offering a competitive price starting from K550 per gram but that depending on the purity, using thorough technical assaying methods, the price may be high.
“Compared to prices found on the informal market ranging from K350 to K500, the price range we are offering compares favourably to this, but also to market prices as well, once the purity or gold content is determined,” He said.
Mabvuto further said in order to harness artisanal and small scale gold mining activity across the country, ZCCM – IH is working closely with the Ministry of Mines to implement measures that will help mop up the gold from these gold mining sites with the objective of curbing the smuggling of gold out of the country.
And responding to a question from ZBT as to whether the buying of gold is linked to the gold reserves that the Bank of Zambia intends stockpile as a way of diversifying from the risk of only relying on holding of the US dollar reserves, Mabvuto said the firm will in future begin to supply BOZ, but as at now it is currently focusing on purchasing gold of about 40 tonnes from artisanal miners.
He has since encouraged individuals with gold to sell their gold to ZCCM-IH adding that it will guide such individuals on how they can regularize their activities so that they are complaint with the relevant regulations.
