Zambia to purchase local gold production to shore up foreign-exchange reserves

Bloomberg/Taonga Clifford Mitimingi

photograph of stack of unmarked 100 ounce gold bars“Zambia, which last month became Africa’s first pandemic-era default, plans to hold gold for the first time since 1995 to bolster foreign-exchange reserves that have dwindled near record lows.”

USAGOLD note:  The gold production is a byproduct of operations at the Kanshani copper mine operated by First Quantum Minerals. The country will pay market prices in local currency. Though minor (about 145,000 ounces produced in 2019), Zambia joins a growing list of countries that have decided to keep production at home rather than sell it on the open market.

Repost from 12-14-2020

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