First Quantum Minerals (FQM) has today, 7th August 2025 signed a landmark agreement that will strengthen the nation’s economic base and ensure that a meaningful volume of Kansanshi’s gold will remain in Zambia.
Under the landmark agreement and following a tender, the Bank of Zambia (BOZ) has extended FQM’s contract to supply the central bank with refined gold for the next three years, building on a similar agreement that expired at the end of 2024.
“As we celebrate our achievements thus far, we look forward with renewed energy and higher aspirations that our partnership will yield even stronger results. We remain committed to collaborating closely with Kansanshi Mining PLC, building on the mutual trust that has characterised our relationship from the outset.
In this partnership with Kansanshi Mining PLC, we have so far purchased about 2.8 metric tonnes of refined gold. We look forward to buying more gold from your esteemed firm,” said Bank of Zambia Governor, Dr Denny H. Kalyalya.
Since the original contract began in 2021, FQM has sold 92,100 ounces of gold to the Bank of Zambia; the equivalent to 61 percent of Kansanshi’s gold doré production during that time. The purchase of gold serves as a store of value and a prudent hedge against inflation, a common practice by central banks across the world.
Under the terms of the agreement, the amount of gold sold will be agreed quarterly, based on FQM’s kwacha requirements and anticipated gold production volumes at the Kansanshi Mining subsidiary in Solwezi. The price will be based on the London Bullion Market Association rate, with payment in kwacha at the prevailing BOZ mid-rate. The agreement is governed by Zambia law.
FQM expects to produce 100,000 to 110,000 ounces of gold at Kansanshi this year.
“We look forward to continuing this partnership and contributing to the Bank’s important efforts to grow Zambia’s gold reserves, and ultimately, to help shape a stronger, more self-reliant national economy,” said FQM Kansanshi Mining General Manager, Meiring Burger.
Separately, earlier this week FQM announced a streaming agreement with Royal Gold, a US-based precious metals investment company. This agreement is a milestone for Zambia, receiving international recognition as a preferred mining jurisdiction. Under this agreement, FQM received a US$1 billion upfront payment in return for gold credits that will be delivered to Royal Gold over time, in an amount calculated on the basis of Kansanshi copper production. Under the agreement, there will be no change in the royalties and taxes paid to Zambia and income to the country will remain intact. No gold from Kansanshi will physically be sold to Royal Gold under the agreement and Kansanshi will continue to produce and sell copper and gold as normal.
As part of the agreement and Royal Gold’s commitment to Zambia, the company has agreed to contributing $4.5 million towards community and social programs in the country during the life of mine of Kansanshi.
“The extension of the contract with BOZ demonstrates FQM’s ongoing commitment to Zambia’s economic resilience. Meanwhile, the streaming agreement between FQM and Royal Gold represents a strong indication of the confidence that international investors have in Zambia as an investment destination. This indirect investment by Royal Gold is the largest of its kind globally in the last decade, adding to FQM and Zambia’s financial resilience. It is a strong endorsement and encouragement for continued investment in Zambia as a leading mining jurisdiction globally.” said FQM Country Director, Anthony Mukutuma.
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About First Quantum Minerals Ltd
First Quantum Minerals Ltd is a global metals and mining company producing mainly copper, gold and nickel. The company’s assets are in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru.
In 2024, First Quantum globally produced 431,000 tonnes of copper, 139,000 ounces of gold and 24,000 tonnes of nickel.
In Zambia it operates the Kansanshi mine and smelter in Solwezi, and the Sentinel copper mine and the Enterprise nickel mine in Kalumbila.
The company is listed on the Toronto Stock Exchange.
http://www.first-quantum.com/
