By BUUMBA CHIMBULU
The gold was bought at a cost of K345.6 million, says BoZ Assistant Director – Communications, Besnat Mwanza in a statement yesterday.
Ms Mwanza explained that the 195.95kg was bought from Kansanshi Copper Mining Plc at a cost of K241.8 million, while 86.84kg was bought from Zambia Gold Company, a subsidiary of ZCCM– IH at a cost of K103.8 million.
“The Bank plans to buy 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 percent purity from Zambia Gold Company per year,” she said.
Ms Mwanza said the estimates were based on the gold purchase agreements signed with Kansanshi Copper Mining Plc and Zambia Gold Company in December, last year.
She explained that the objective of this initiative is to shore up and diversify the international reserves.
Ms Mwanza said the viability and attractiveness of this venture was that the gold was being purchased in local currency.
According to Ms Mwanza, the dore gold bought 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,” she said.
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