The Bank of Zambia (BOZ) says it has purchased 282.79 kilogrammes of gold since December 2020 at a cost of K345.6 million.
According to a statement issued by the Bank’s Communications Department, 195.95 kilograms was purchased from Kansanshi Copper Mining Plc at a cost of K241.8 million while 86.84 kilograms was purchased from Zambia Gold Company, a subsidiary of ZCCM – IH at a cost of K103.8 million.
The department said that the Bank plans to purchase around 25, 200 ounces of London good delivery gold from Kansanshi Copper Mining Plc and 21,000 ounces of dore gold with a minimum of 88% purity from Zambia Gold Company per year.
It explained that the estimates are based on the gold purchase agreements signed with Kansanshi Copper Mining Plc and Zambia Gold Company in December, 2020.
“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 statement read.
The department further said the dore gold purchased from Zambia Gold Company will only reflect in international reserves after refining. The department noted that the purchase price of the commodity is not fixed and is determined by the London Bullion Market Association (LBMA).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”.