All Posts

Press Releases, ZCCM-IH

ZCCM-IH NEW BOARD CHAIRPERSON AND BOARD DIRECTORS APPOINTED

15th December 2021, Lusaka, Zambia – ZCCM Investments Holdings Plc’s (“ZCCM-IH” or the “Company”) majority shareholder, the Industrial Development Corporation Ltd (IDC) has appointed the Company’s new Board Chairperson Ms. Dolika E. S. Banda and three other Board Directors namely Mr. Gregory C. Kabwe, currently serving as Director – Investment and Debt Management under the Ministry of Finance and National Planning; Mr. Moses S. Nyirenda, the Director – Human Resource and Administration at the Ministry of Mines and Minerals Development; and Bishop John H. Mambo who has served in various capacities in the private and public sectors.

Ms. Dolika Banda an investment and financial expert is the first female Board Chairperson to head ZCCM-IH, with a wealth of over 36 years of experience from various local and international organisations across the globe.

Commenting on her appointment, Ms. Banda says she is honoured to be awarded an opportunity to serve the country through this position. “I do not underestimate the challenges that lie ahead – yet therein lies the opportunity. Working together for a common goal, as I know we will do, I see a ZCCM-IH that will fly high, just as the eagle on our flag soars against all odds” she adds.
Ms. Banda further states that her aspiration for ZCCM-IH is “to see a ZCCM-IH Group that claims and earns its rightful status as the engine and driver of a new, transformational, solutions-driven and inclusive economy – underpinned by awareness of the global issues of today and good governance”. She underscores that success will be that the intrinsic value of the ZCCM-IH Group will be reflected in its relevance, healthy relationships with its strategic partners, and ultimately, in its global market price.
Ms. Banda has assured ZCCM-IH shareholders that she will endeavor to lead the Board such that the decisions will always be in the best interest of the Company. She further states that despite the many challenges faced by the Company in the past “there is now a wave of a positive confluence of key influencing factors such as political goodwill, coupled with international confidence, shareholder optimism and patience, and positive demographic dynamics” to spur the Company to growth.
ZCCM-IH now has a fully constituted eight-member Board including Directors representing NAPSA, the minority shareholders, and the IDC.

Issued by:

Loisa Mbatha
Corporate Affairs Manager
ZCCM INVESTMENTS HOLDINGS PLC
corporate@zccmnew.wpenginepowered.com
+260 211 388 000/228690/91/95

Download the Full press release here: Statement on new ZCCM-IH Board Chairperson and Board Members
ZCCM-IH, ZCCM-IH News

DOLIKA BANDA IS NEW ZCCM-IH BOARD CHAIR

The Industrial Development Corporation has announced the appointment of Dolika Banda as Chairperson of the ZCCM-IH Board.

Ms. Banda is also a Non Executive Director at the CDC Group plc, a development finance institution owned by the UK government.

She is also an independent Non-executive Director at Harith Infrastructure Investment and a Global Ambassador for The Global Steering Group for Impact Investment.

She is the former CEO of African Risk Capacity Insurance Ltd and has held Non-Executive Director positions at Ecobank Transnational and the UK Department for International Development’s Financial Sector Deepening Africa programme.

Daughter to former President Rupiah Banda, Dolika has many years experience in international finance and banking and has worked across the world in Africa, Europe, Latin America, the Caribbean and the US.

A former Director at the IFC, and a former Regional Director for Africa at CDC Group, Ms. Banda’s involvement in development finance followed a successful career in banking in which she held senior positions at Barclays Bank Zambia in corporate and merchant banking and at Citibank Zambia in financial control, credit, treasury and international relationships.

She holds a Master’s in International Business from Schiller University.

She is the first female Board Chairperson to head ZCCM-IH.

Commenting on her appointment, Ms. Banda says she is honoured to be awarded an opportunity to serve the country through this position saying she does not underestimate the challenges that lie ahead.

ZCCM-IH now has a fully constituted eight-member Board including Directors representing NAPSA, the minority shareholders and the IDC.

Others appointed to the Board are Gregory Kabwe, currently serving as Director – Investment and Debt Management under the Ministry of Finance and National Planning; Moses Nyirenda, the Director Human Resource and Administration at the Ministry of Mines and Minerals Development; and Bishop John Mambo who has served in various capacities in the private and public sectors.

Source: https://www.lusakatimes.com/2021/12/16/dolika-banda-is-new-zccm-ih-board-chair/
Investee Companies, Investee Company News

VEDANTA STILL NOT IN CHARGE OF KCM ASSET; SHACHINDA SETS RECORD STRAIGHT

Konkola Copper Mines Plc remains under the management of the Provisional Liquidator, according to an official statement from the mining company.

“Konkola Copper Mines Plc (“KCM”) remains under the management and control of the provisional liquidator, pursuant to the Court Order dated 21st May 2019”, read a statement issued by General Manager Corporate Affairs Shapi Shachinda on 10th December 2021. “We note a Vedanta Resources Holdings (“Vedanta”) statement dated 7th December 2021 which seeks to give the impression that they have regained management control of the KCM asset”.

According to a media release attributed to Vedanta, Dr Moses Banda was announced as the Spokesperson of Vedanta in Zambia. “Vedanta Resources Holdings Limited and its parent, Vedanta Resources Limited is pleased to announce that Dr Moses Banda, Vedanta’s Country Director as the official spokesperson in Zambia”.

“Dr Banda is a prominent voice Vedanta is extremely pleased to have Dr Banda’s experince on board to focus on rebuilding KCM, protecting 12,000 jobs in KCM and looks forward to engaging with the Zambian communities”, further read the statement.

However, “Members of the public are advised to disregard this deliberate attempt to mislead the nation”, in a rebuttal to the aforementioned statement by Shachinda. “Vedanta remains uninvolved in the running of operations at KCM”.

Sensing that the Vedanta statement may cause concern amongst key stakeholders, Shachinda further stated that “they appealed to all KCM employees, labour unions representing KCM employees, KCM Creditors, Contractors and Suppliers as well as the Company’s business partners and other key stakeholders to remain calm”.

Further Cautionary Announcement from ZCCM IH as at 28th July 2021

The following is an extract of the SENS announcement published in July this year regarding the matter from ZCCM IH’s Company Secretary Chabby Chabala on behalf of the Board of ZCCM IH regarding the Arbitration matter.

Shareholders of ZCCM Investments Holdings Plc (“ZCCM-IH”) are referred to the announcement dated 23 May 2019 concerning the following:

  • ZCCM-IH filing a petition in the High Court of Zambia for the winding up of Konkola Copper Mines PLC (“KCM”) on 21 May 2019 (the “Petition”) and the appointment by the Court of Mr Milingo Lungu as provisional liquidator of KCM (the “Provisional Liquidator”);
  • The legal proceedings commenced by Vedanta Resources Limited and Vedanta Resources Holdings Limited (together “Vedanta”) against ZCCM-IH on 2 July 2019 in the High Court of South Africa;
  • Vedanta’s applications to the High Court of Zambia to stay the liquidation proceedings and refer the matter to arbitration.

The South African proceedings were pursuant to the Arbitration proceedings which were yet to be commenced and were eventually commenced by Vedanta against ZCCM-IH on 31 July 2019. The Arbitration proceedings (which are confidential as between the parties) are underway and yet to be finally resolved. Shareholders, are however, advised that on 7 July 2021 the Sole Arbitrator made a Partial Final Award (“the Award”). The Award was in some parts in favour of ZCCM-IH and in some parts in favour of Vedanta. The Award has no effect on ZCCM-IH’s application for leave to appeal against the decision of the Court of Appeal announced in ZCCM-IH’s further cautionary announcement of 23 June 2021. Further, the Award has no effect on the position of the Provisional Liquidator, who remains in office.

ZCCM-IH will provide details on this matter in due course.

In the meantime, Shareholders of ZCCM-IH are advised to exercise caution when dealing in securities of the Company until further information is published. 

By Order of the Board

Chabby Chabala

Company Secretary

Issued in Lusaka, Zambia on 28 July 2021

 

Source: https://fizambia.com/vedanta-still-not-in-charge-of-kcm-asset-shachinda-sets-record-straight/
Investee Companies, Investee Company News

MINISTER OF MINES EYES ‘SOUND SOCIAL CONTRACT’ BETWEEN KASENSELI GOLD MINE AND COMMUNITY

Zambia’s Mines and Mineral Development Minister has advised key stakeholders that progress on the reopening on Kasenseli Gold Mine in Northwestern Province was progressing well with one of the key issues that was being addressed being having in place a ‘sound social contract’ with the community around the mine.

Paul Kabuswe was quote in the Times of Zambia, 13th December 20221 edition, saying that “he was meeting Chief Chikwika in the third week of December 2021 as well as other key stakeholders to structure a workable mining plan for the mine”.

In October this year, the Minister suspended operations at the mine following a number of security and safety issues that had arisen since the mine’s commencement of exploration activities following their move on site in April 2020.

Furthermore, according to the same issue of the Times of Zambia, Chief Chibwika was cited as requesting for the mine to be shutdown.

This shutdown has derailed the Central Bank’s purchases of gold. According to the Zambia Business Times, “The Bank of Zambia has been purchasing dore gold from Kasenseli Mine since December 2020, through the Zambia Gold Company and refined gold from Kansanshi Mine from January, 2021. The Bank has so far purchased 20,600 ounces of refined gold valued at US $37 million” in a statement from the Public Relations Department at Bank of Zambia.

The social contract alluded to requires a concerted effort on all key stakeholders as there will be expectation management that will need to be implemented. It has been noted that the community does feel that they need to ensure that they rip the benefits of having gold deposits in their area. However, ZCCM IH has been mandated to over see the structuring of progressive agreements that will ensure that there is a pathway to structured mining deals in Zambia that have the potential of scaling up to world class entities.

 

Source: https://fizambia.com/minister-of-mines-eyes-sound-social-contract-between-kasenseli-gold-mine-and-community/
Investee Company News

CONTINUED SUSPENSION OF KASENSELI GOLD MINE PUTS CENTRAL BANK’S GOLD RESERVE BUILD-UP IN JEOPARDY

The new Mines Minister Paul Kabuswe’s continued suspension of the Kasenseli gold mine operating license, and thus mining activities, from late October 2021 put the central bank’s gold reserve build-up target for 2021 in jeopardy.

Since the gold-buying program began in January this year, the Bank of Zambia (BoZ) has spent approximately US$37 million on refined gold from First Quantum’s Kansanshi mine.

Kasenseli Gold Mine’s operations in Mwinilunga, North-Western Province, were halted after a Ministerial directive from the Minister of Mines and Minerals Development to do so to address concerns about the mine’s license conditions and safety regulations.

The ministry of mines did not give timelines for sorting out what was referred to as “concerns relating to Kasenseli Mine’s license conditions and safety regulations”. This continued suspension without timelines for re-opening will drag down the gold annual production for the country.

And the central bank – BoZ has confirmed that they will resume gold purchases from Kasenseli Gold Mine once its suspension is lifted. BoZ had purchased 283 kilograms of gold at a total cost of over K345 million from Kansanshi Mine and the Zambia Gold Company by the end of the first quarter of this year.

BoZ plans to purchase around 25,200 ounces of London Good Delivery gold from Kansanshi and 21,000 ounces of dore gold with a minimum of 88 per cent purity from Zambia Gold Company in 2021.

Responding to a ZBT inquiry, BoZ Assistant Director, Communications Besnat Mwanza confirmed that the central bank’s refined gold purchases from Kansanshi, an FQM subsidiary, had so far climbed to about US$37 million or K646 million compared to K345 million by the end of the first quarter.

“The Bank of Zambia has been purchasing more gold from Kasenseli Mine since December 2020, through the Zambia Gold Company and refined gold from Kansanshi Mine from January 2021. The Bank has so far purchased 20,600 ounces of refined gold valued at the US $37 million,” Mwanza said.

And she revealed that the central bank would continue to augment its reserves through gold purchases from Kasenseli Mine once the suspension is lifted. Kasenseli Mine is operated by Zambia Gold Company Ltd, a subsidiary of ZCCM-IH, a state-owned entity.

The concerns raised by the Ministry of Mines when suspending operations chiefly related to safety and security concerns, among others, was effective October 22, 2021, and has remained in force. No timelines have been given as to the issues that should be resolved as the minister of mines only indicated that until all issues highlighted in the Ministerial directive are closed out.

BOZ told ZBT that “In April 2021, the projection was to accumulate 21,000 ounces for 2021, but forecasts are dependent on levels of production. Because of this, this projection was later revised downwards as production levels declined later in the year. Targets are, therefore, based on the gold mined and if this declines or stops, gold purchases are impacted directly,” explained Mwanza.

When asked when BOZ would start buying from Zambia Gold Company, the Central bank stated that “Kasenseli Mine is under the regulatory supervision of the Ministry of Mines and details of its resumption would be best provided by the Ministry and ZCCM-IH. The Bank [BoZ] will continue to augment its reserves through gold purchases from Kasenseli Mine once the suspension is lifted. The Bank continues to buy gold from Kansanshi Mine and a total of 25,200 ounces is projected to be bought in 2021.”

BoZ added the build-up of gold reserves to shore up the country’s ability to safeguard its currency the Kwacha. Apart from holding US dollar reserves that can be drawn upon to fund emergency imports as well as support the local currency – gold reserves can also provide an alternative reserve buffer.

 

Source: https://copperbeltkatangamining.com/continued-suspension-of-kasenseli-gold-mine-puts-central-banks-gold-reserve-build-up-in-jeopardy/?utm_source=rss&utm_medium=rss&utm_campaign=continued-suspension-of-kasenseli-gold-mine-puts-central-banks-gold-reserve-build-up-in-jeopardy
ZCCM-IH, ZCCM-IH News

ZAMBIA HAS ACHIEVED A HIGH OVERALL SCORE IN IMPLEMENTING THE 2019 EITI STANDARD

Board decision in full

Zambia has achieved a high overall score in implementing the 2019 EITI Standard (90 points). The overall score reflects an average of the three component scores on Stakeholder engagement, Transparency and Outcomes and impact.

The EITI Board commends Zambia for achieving a very high score on Outcomes and impact (93 points), and recognises the progress in ensuring the effectiveness and sustainability of EITI implementation. Zambia EITI’s work in informing changes in the government’s extractive sector policies as well as both government and company practices in extractive governance. Validation has highlighted how industry and government stakeholders have come to rely on Zambia EITI for public awareness, public debate, and policy consultations related to the mining sector.

Zambia has achieved a very high score on Stakeholder engagements (93 points), with strong engagement by government, civil society and companies. The EITI Board recognises that the MSG, the Zambia EITI council (ZEC), has established itself as a robust and flexible platform to oversee all aspects of implementation, including in resolving disputes between various constituencies and stakeholders engaged in extractive industry governance. Consultations indicate that civil society is using EITI data for public debate. Government and industry representatives also actively use their engagements with civil society to inform local communities on extractive sector governance, and the ZEITI Secretariat appears to be actively coordinating capacity building and engagements between several different government entities. While the government has contributed funding for Zambia EITI activities, sustainability of EITI implementation in Zambia will require increased government support. Gender representation on the MSG is not yet balanced, although ZEITI is implementing a plan to address this.

Finally, the EITI Board finds that Zambia has a moderate score on the Transparency component (85 points). The ZEC have leveraged the multi-stakeholder approach to use a risk-based approach to reconciliation in their latest disclosures, addressing stakeholder information needs on the impact of the pandemic on the sector and on government revenues. The EITI Board recognises Zambia’s progress on corrective actions from previous Validations that have strengthened the use of EITI as a diagnostic tool of extractive governance. Further efforts to address requirements of the EITI Standard related to contracts (for Phase II of Validation), beneficial ownership, production and export data as well as disaggregated disclosures of government extractive revenues can facilitate more complex analyses of EITI data to inform reforms in fiscal terms, oversight of state-owned enterprises and other sector reforms. These disclosures can help ensure that governments and companies are effectively monitoring extractive operations and help build public trust in public disclosures. The Board recognises Zambia’s efforts to exceed basic requirements of the EITI Standard in its participation in an ongoing EITI review of government mechanisms for monitoring production and export data related to industrial and energy minerals, as well as gemstones.

The Board has determined that Zambia will have until a next Validation commencing on 1 October 2024 to carry out corrective actions regarding contracts (Requirement 2.4), beneficial ownership (Requirement 2.5), production data (Requirement 3.2), export data (Requirement 3.3) and on disaggregation (Requirement 4.7) of revenue data.

Failure to demonstrate progress on Transparency in the next Validation may result in temporary suspension in accordance with Article 6 of the EITI Standard. In accordance with the EITI Standard, the Zambia EITI Council may request an extension of this timeframe or request that Validation commences earlier than scheduled.

Read the full article here: https://eiti.org/board-decision/2021-73
Investee Company News

ZAMBIA: CEC SHARE PRICE RALLIES TO K2.65

THE Copperbelt Energy Corporation Plc has registered a sharp rise in its share price, now trading at K2.65 per share, an all-time high, driven by a significantly improved financial performance year-on-year.

Market data availed by the Lusaka Securities Exchange (LuSE) revealed that the power utility’s share price has soared to K2.65 per share as at December 3, 2021, compared to K0.96 per share exactly 12 months ago.

In the wake of the now-lapsed Bulk Supply Agreement (BSA) with Zesco Limited, CEC’s share price on the LuSE slumped to K0.80 per share by end of trading on June 25, 2020, compared to K1.21 by March 31, 2020 when the Agreement lapsed.

The BSA lapsed on March 31, and since then CEC’s transmission and distribution infrastructure had been declared Common Carrier through Statutory Instrument (SI) Number 57 of 2020. Former energy minister Mathew Nkhuwa in the former PF regime issued Statutory Instrument Number 24 of 2021, which replaced SI No. 57 of 2020, declaring CEC infrastructure as common carrier, following the High Court’s quashing of his decision to declare CEC’s transmission and distribution lines as a common carrier in a ruling issued on February 26, this year.

But the Kitwe-based power utility’s share price has rallied since posting an improved financial performance during its first-half year period ending June 30, 2021.

Since announcing its half-year results in September this year, where the utility earned a huge profit of around US $25.5 million in the period ending June 30, 2021, coming from a loss of US $32.5 million in the prior period, its share price jumped from K1.40 per share in early September to K1.80 in trading sessions on the LuSE by the end of that same month.

Analysis from data made available on the company’s share chart shows that its share price peaked to an all-time high of K2.65 per share this month since going public on the local bourse back in January, 2008, opening at K0.45 per share.

Aside from the BSA uncertainty, key factors explaining CEC’s share price fall to around K0.93 per share 12 months ago were its reduced profitability of $5.6 million last year, mainly triggered by huge impairment losses stemming from Konkola Copper Mines’ unpaid electricity bill, and the downgrading of Zambia’s sovereign credit rating having dampened foreign appetite for CEC, among other entities.

However, by the half-year period this year, CEC’s profit of $25.5 million was mainly boosted by significantly reduced receivable impairment losses from KCM, triggered by the segment shift of the KCM demand.

And a change of government in August, 2021 further strengthened optimism on the chances a settlement on the CEC-Zesco commercial dispute being amicably reached following energy minister Peter Kapala’s assurance in Parliament, last October, that government intended to renegotiate the BSA with CEC after the resolution of court cases by the end of this year.

With the Zambian government’s landmark announcement of its Stall Level Agreement with the International Monetary Fund (IMF) on a much-needed Extended Credit Facility (ECF) for Balance of Payments (BoP) support, investor confidence in the economy is likely to improve.

Foreign appetite to increase investment in government securities and shares on the local bourse is equally anticipated in the short-to-medium term.

 

Source: https://www.african-markets.com/en/stock-markets/luse/zambia-cec-share-price-rallies-to-k2-65
ZCCM-IH News

ZCCM-IH DISMISSES BIAS ALLEGATIONS IN LEAD POISONING CASE

THE ZCCM-Investment Holdings (ZCCM-IH) has denied allegations that it has been uncooperative to lawyers who have sued Anglo American South Africa Limited (AASA) in a class action on behalf of 100,000 alleged victims of lead contamination in Kabwe.

Describing the allegation as incorrect and malicious, ZCCM-IH corporate affairs manager, Loisa Mbatha says as before, the lawyers and their agents are free to access the archives at any time for whatever period without any restrictions.

Source: http://www.times.co.zm/?p=113320 
Archived Jobs, ZCCM-IH

Job Advertisement – November 2021

ZCCM Investments Holdings PLC is an investments holdings company with diversified interests in mining, energy, and other sectors of the Zambian economy.  The Company’s majority shareholder is the Industrial Development Corporation Ltd (IDC), an investment company wholly owned by the Zambian Government and the rest of the shareholders include institutions and private shareholders spread across the world.

The mission of the Company is to “to maximize shareholder value with due regard to the interests of all stakeholders”.  In order to achieve this mission, the Company invites applications from suitably qualified and experienced staff who are innovative, energetic, and performance-driven to fill the following position:

TECHNICAL DIRECTORATE

  1. Metallurgist (x1)
  2. Project Geologist – Energy (x1)

PROCUREMENT DEPARTMENT

  1. Assistant Procurement Officer (x1)

FINANCE DIRECTORATE

  1. Financial Accountant (x1)
  2. Accounts Assistant-Payroll (x1)
  3. Cashier (x1)

INVESTMENTS DIRECTORATE

  1. Portfolio Analyst – Non-Mining Assets (x1)
  2. Business Development Analyst (x1)

ICT DIRECTORATE

  1. Chief ICT Officer (x1)
  2. Systems Administrator (x1)

INTERNAL AUDIT DIRECTORATE

  1. Internal Auditor (x1)
  2. Assistant Internal Auditor (x1)

HUMAN RESOURCES & ADMINISTRATION DIRECTORATE

  1. Chief Human Resources & Admin Officer (x1)

The detailed Job Descriptions for the above positions are attached

Applications together with copies of certificates and detailed curriculum vitae should reach the undersigned not later than 10th December 2021.

A/Chief Human Resources & Administration Officer
ZCCM Investments Holdings Plc
ZCCM IH Office Park

P O Box 30040
LUSAKA

 

Download Full Job details Below:

Icon

Metallurgist

Icon

Assistant Procurement Officer

Icon

Accounts Assistant-Payroll

Icon

JD - Assistant Internal Auditor

Icon

Business Development Analyst

Icon

Chief ICT Officer

Icon

JD - Financial Accountant

Icon

JD - ZCCM ICT System Administrator

Icon

JD - Cashier

Icon

JD - Chief Human Resource and Administration Officer

Icon

JD - Portfolio Analyst-Non-Mining Assets

Icon

Project Geologist Energy

Icon

Internal Auditor

 
ZCCM-IH News

Kasenseli mine closure derails BoZ gold reserves build up

The continued suspension of the Kasenseli gold mine operating license and therefore mining activities by the new Mines Minister Paul Kabuswe from late October 2021 is putting the central bank’s gold reserve build-up target for 2021 in jeopardy.

Bank of Zambia (BoZ) has disclosed to the Zambian Business Times – ZBT that’s the Central bank has so far spent about US$37 million on buying up refined gold from First Quantum’s Kansanshi mine since the gold-buying programme commenced in January, this year.

Kasenseli Gold Mine’s operations in Mwinilunga, North-Western Province was suspended following a Ministerial directive from the Minister of Mines and Minerals Development to suspend operations and address concerns relating to Kasenseli Mine’s license conditions and safety regulations.

The ministry of mines did not give timelines for sorting out what was referred to as “concerns relating to Kasenseli Mine’s license conditions and safety regulations”. This continued suspension without timelines for re-opening will drag down the gold annual production for the country.

 And the central bank – BoZ has confirmed that they will resume gold purchases from Kasenseli Gold Mine once its suspension is lifted. BoZ had purchased 283 kilograms of gold at a total cost of over K345 million from Kansanshi Mine and the Zambia Gold Company by the end of the first quarter of this year.

BoZ plans to purchase around 25,200 ounces of London Good Delivery gold from Kansanshi and 21,000 ounces of dore gold with a minimum of 88 per cent purity from Zambia Gold Company in 2021.

Responding to a ZBT inquiry, BoZ Assistant Director, Communications Besnat Mwanza conformed that the central bank’s refined gold purchases from Kansanshi, an FQM subsidiary, had so far climbed to about US$37 million or K646 million compared to K345 million by the end of the first quarter.

“The Bank of Zambia has been purchasing dore gold from Kasenseli Mine since December 2020, through the Zambia Gold Company and refined gold from Kansanshi Mine from January, 2021. The Bank has so far purchased 20,600 ounces of refined gold valued at US $37 million,” Mwanza said.

And she revealed that the central bank would continue to augment its reserves through gold purchases from Kasenseli Mine once the suspension is lifted. Kasenseli Mine is operated by Zambia Gold Company Ltd, a subsidiary of ZCCM-IH, a state-owned entity.

The concerns raised by the Ministry of Mines when suspending operations chiefly related to safety and security concerns, among others, was effective October 22, 2021, and has remain in force. No timelines have been given as to the issues should be resolved as the minister of mines only indicated that until all issues highlighted in the Ministerial directive are closed out.

BOZ told ZBT that “In April, 2021, the projection was to accumulate 21,000 ounces for 2021, but forecasts are dependent on levels of production. In view of this, this projection was later revised downwards as production levels declined later in the year. Targets are, therefore, based on the gold mined and if this declines or stops, gold purchases are obviously impacted directly,” explained Mwanza.

When asked when BOZ would start buying from Zambia Gold Company, the Central bank stated that “Kasenseli Mine is under the regulatory supervision of the Ministry of Mines and details of its resumption would be best provided by the Ministry and ZCCM-IH. The Bank [BoZ] will continue to augment its reserves through gold purchases from Kasenseli Mine once the suspension is lifted. The Bank continues to buy gold from Kansanshi Mine and a total of 25,200 ounces is projected to be bought in 2021.”

BoZ added the build-up of gold reserves to shore up the country’s ability to safeguard its currency the Kwacha. Apart from holding US dollar reserves that can be drawn upon to fund emergency imports as well as support the local currency – gold reserves can also provide an alternative reserve buffer.

Source: https://zambianbusinesstimes.com/kasenseli-mine-closure-derails-boz-gold-reserves-build-up/