Kansanshi Mine to Ensure Steady Gold Supply to Both Royal Gold and Bank of Zambia
Kansanshi Mine Renews Gold Supply Agreement with Bank of Zambia While Honoring $1 Billion Deal with Royal Gold
Kansanshi Mining Plc, a subsidiary of First Quantum Minerals (FQM), has reaffirmed its commitment to strengthening Zambia’s gold reserves by renewing its Memorandum of Understanding (MoU) with the Bank of Zambia (BOZ) for the continued sale of gold dore.
This milestone was marked by a formal signing ceremony held today, signaling the continuation of a strategic partnership that dates back to 2020.
The renewal comes at a time when Kansanshi is also entering into a significant $1 billion gold streaming agreement with Royal Gold, raising public interest about the mine’s ability to meet multiple high-value commitments.
In an Interview with Copperbelt Katanga Mining FQM Country Manager, Dr. Godwin Beene, assured stakeholders that the mine is well-equipped to meet both obligations without disruption:
“Kansanshi has enough gold dore; we will meet the requirements of both entities. The commissioning of the S3 Expansion guarantees a steady input of gold into the concentrator. As far as production is concerned, there’s no cause for worry.”
Dr. Beene also emphasized the quality and national impact of Kansanshi’s gold output:
“The benefit of this arrangement is that a good percentage of the gold stays in the country. It will support Zambia’s treasury and benefit the nation at large—not just our immediate communities.”
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And BOZ Governor Dr. Denny Kalyalya hailed the renewed agreement as part of the Bank’s broader mission to bolster Zambia’s national reserves and mitigate volatility in the foreign exchange market.
“Our partnership with Kansanshi Mining, which began in 2020, has already allowed us to accumulate 2.8 metric tonnes of refined gold. This initiative is aligned with global central bank trends, as highlighted by the World Gold Council, where gold is increasingly seen as a safe and strategic asset.”
The Governor also announced that BOZ will be expanding its domestic gold purchase programme to include not only large-scale operations like Kansanshi but also artisanal and small-scale miners. Guidelines are being circulated among stakeholders, with finalization expected after thorough feedback.
“This expansion doesn’t diminish our existing partnerships. On the contrary, we remain deeply committed to our collaboration with Kansanshi Mining Plc, which continues to set a high standard for strategic public-private cooperation.”
Kansanshi’s General Manager emphasized that this agreement is about more than commercial exchange—it reflects a shared vision for Zambia’s long-term economic sovereignty:
“Since 2021, 61% of Kansanshi’s gold dore production has gone to the Bank of Zambia. This gold isn’t just leaving the mine—it’s building Zambia’s reserves and strengthening monetary policy.”
He also highlighted FQM’s broader commitment to value addition within Zambia, referencing Kansanshi’s partnership with ZAMEFA. The mine supplies copper cathode to ZAMEFA, which in turn has produced $2.6 million worth of cabling for Kansanshi’s S3 Expansion, using copper mined on-site.
“This is a virtuous cycle—where our production fuels both global markets and local industrial growth.”
With the renewed MOU in place, Kansanshi Mining Plc continues to model how responsible mining operations can drive national development—not only through taxes and royalties, but by embedding value within the local economy, supporting the Bank of Zambia’s financial strategies, and balancing global commitments with national priorities.
As Zambia positions itself to become a leading player in the gold market, partnerships like this will be critical for maintaining economic stability, resilience, and inclusive growth.
