Today’s event is a landmark one, and we are excited as it is the culmination of a dream that was birthed even before a gram of gold was mined from our end.

As you may know, last year, Government declared gold as a strategic mineral, and in order to provide a well-coordinated mechanism of exploiting the resource, put ZCCM-IH at the helm.

ZCCM-IH was charged with the mandate to drive the development of the gold subsector by coordinating the activities and programs in the entire gold value chain.

In January 2020, we formed Zambia Gold Company Limited (ZGC) owned 51% by ZCCM-IH and 49% by the Ministry of Finance, a vehicle through which this mandate would be implemented.

From the onset, we have been preaching that we would be selling whatever we produce under Zambia Gold Company to the Bank of Zambia, in order to start building up the gold reserves for the country.

Ladies and Gentlemen,

Zambia Gold Company Limited has so far invested over 30 million Kwacha in the first gold project in Kasenseli, Mwinilunga.

Following the granting of a mining license in June 2020, we commenced mechanized partial surface mining and processing activities.

And so far, we have been able to mine and process near-surface material with a current total production of 74 kilo grams worth about 4 million United States Dollars (equivalent of K84 million)

We are currently focused and working on increasing the production capacity by purchasing bigger processing machinery and more mining equipment.

Ladies and Gentlemen,

In order to establish the quantity of the gold resource in our Kasenseli mine area, the detailed exploration activities that commenced in March early this year, completed in September, with the initial target of 5,000 meters drilled around targeted pits.

Core samples are currently being analysed and final results are expected in the next couple of months.

Further, we have also commenced infill drilling targeting 2, 000 meters to give us more geological data.

Ladies and Gentlemen,

Further, we are acquiring more gold licences in other parts of the country such as Mumbwa and Rufunsa in order to expand and build on our gold mining assets as a company.

In addition, in the near future, we intend to set-up a refinery for gold beneficiation and also add value to some of the gold to produce jewelry coupled with our amethyst and emeralds.

As you can see, we have an ambitious investment strategy for the entire gold value chain and we have put in place a robust road map, as we believe that the gold sub-sector in Zambia presents a viable opportunity for ZCCM-IH to derive economic and social value for the company, the respective communities and the country at large.

And today’s milestone, is historic and marks the beginning of a journey to shared prosperity and tangible wealth creation created by Zambians for Zambians, through ZCCM-IH’s subsidiary, Zambia Gold Company Limited.

Ladies and Gentlemen,

As I conclude, let me take this opportunity to express gratitude to the teams from both the Bank of Zambia and ZCCM-IH for their tireless efforts to make this a reality.

Thank you all for listening.

Source: http://fizambia.com/?p=9212

Following the Zambian Government’s declaration of gold as a strategic resource, the Central Bank has now signed a deal with the investment group that has been bestowed the honor and responsibility of consolidating gold mining efforts in Zambia, according to an announcement from the Bank of Zambia.

“The Bank of Zambia agreed on Friday to purchase gold from locally-listed miner ZCCM-IH”, read a report published by Reuters on Friday 11 December. This was confirmed by a tweet from the central bank posted earlier in the day. “The Bank of Zambia has this morning signed a Gold Purchase Agreement with the Zambia Gold Company Limited, a subsidiary of ZCCM Investments Holdings (ZCCM-IH)”.

According to the Central Bank, “this Agreement will take the Bank’s efforts to build the country’s gold reserves a step further”.

What now appears to have been a busy day for the new Governor of the Central Bank, the reserve bank had signed a deal with First Quantum Minerals to secure more gold bullion. “The Bank of Zambia will begin buying gold from Canadian miner First Quantum Minerals and the state mining firm as it resumes holding the precious metal as part of its foreign reserves”, the central bank governor said on Friday as reported by mining weekly.

“During periods of market stress – when assets would be losing value – gold would be adding value, thereby shielding the whole portfolio from large losses,” Bank of Zambia Governor Christopher Mvunga said as reported by mining weekly. The report further indicated that “under the agreement signed between the central bank and First Quantum, a Toronto-listed copper miner, Zambia will buy gold produced as a by-product of the company’s Kansanshi copper mine.

Gold is considered a safe investment. Furthermore, it has long been considered a durable store of value and a hedge against inflation. It is supposed to act as a safety net when markets are in decline since the price of gold doesn’t typically move with market prices. Therefore, it’s no wonder that the central bank is seeking to build up its gold reserves following a sovereign default as alluded to by the central bank governor.

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