BoZ Gold Reserves Swell

The Bank of Zambia has purchased 282.79 kilogrammes of gold since December, 2020 at a cost of K345.6 million.

About 195.95 kilogrammes was purchased from Kansanshi Copper Mining at a cost of K241.8 million, while 86.84 kilogrammes was purchased from Zambia Gold company, a subsidiary of ZCCM-IH at a cost of K103.8 million.

These 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 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.

The LBMA, established in 1987, is the international trade association representing the global Over the Counter bullion market, and defines itself as “the global authority on precious metals”.

This article originally appeared on Zambia Reports