The Bank of Zambia has purchased 282.79 Kilogrammes of gold since December, 2020 at a cost of K345.6 million from Kansanshi Copper Mining ( KCM ) Plc .
195.95 kilogrammes were purchased the mineral from KCM at a cost of K241.8 million, while 86.84 kilogrammes were purchased from Zambia Gold company ( ZGC ) , a subsidiary of Zambia Consolidated Copper Mines Investment Holding ( ZCCM – IH ) at a cost of K103.8 million.
Furthermore, the Central Bank plans to purchase around 25,200 ounces of London Good Delivery ( LGD ) gold from KCM Plc and 21,000 ounces of Dore gold with a minimum of 88% 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”.
This is according to a press statement made available to the media by Bank of Zambia Communication Division.