THE Bank of Zambia (BoZ) says it has spent about K345.6 million on the purchase of gold from Kansanshi Copper Mining in Northwestern Province.
The revenue was generated from the sale of an estimated 282.79 kilogrammes of gold.
According to a central bank statement about 195.95kgs were purchased from Kansanshi at a cost of K241.8 million, while 86.84 kilogrammes were purchased from the Zambia Gold Company (ZGC), a subsidiary of the Zambia Consolidated Copper Mines Investment Holding (ZCCM-IH) at a cost of K103.8 million.
The bank further plans to purchase around 25,200 ounces of London Good Delivery (LGD) gold from the Kansanshi mine and 21,000 ounces of Dore gold with a minimum of 88 percent purity from ZGC per year.
These estimates are based on the gold purchase agreements signed with the two local firms in December 2020.
With the objective of this initiative is to shore up and diversify the international reserves, the viability and attractiveness of this venture is that the gold is being purchased in local currency.
The Dore gold purchased from Zambia Gold Company will only reflect in international reserves after refining
The purchase price of the commodity is not fixed and is determined by the London Bullion Market Association (LBMA).
The LBMA, established in 1987, is the international trade association representing the global Over the Counter (OTC) bullion market, and defines itself as “the global authority on precious metals”.