By 
The Zambian government has announced plans to tighten regulation of gold trading and processing in a bid to curb leakages and maximise revenue from the sector.
Ministry of Mines and Minerals Development Permanent Secretary, Dr. Hapenga Kabeta, said the new measures will require all companies involved in downstream gold activities to obtain separate licences under a revised regulatory framework.
Dr. Kabeta announced this during a meeting with stakeholders in Eastern Province, where concerns over illegal trading and informal gold dealings have been rising.
He said the framework was part of broader reforms aimed at bringing order to the gold value chain and ensuring that all gold produced in Zambia is accounted for.
“Currently, only the Bank of Zambia remains the country’s sole authorised buyer of gold, with gold-processing and purchasing arrangements expected to be channelled through the central bank,” Kabeta said.
Under the proposed system, all gold mined in the country will be sold to one designated entity, ending the current practice where multiple buyers and dealers operate independently.
The Permanent Secretary warned that dealing in gold without the required licence is an offence and could lead to arrest and prosecution.
“The legal framework is largely in place and is expected to be presented to Parliament when the legislative process resumes,” he said.
Kabeta added that once passed, the law would mandate licensing for mining, processing, trading and export of gold as distinct activities, rather than operating under a general mining licence.
He urged stakeholders to begin aligning their operations with the emerging requirements to avoid disruptions when the new rules take effect.
Read More: Party leader, Chanda, calls for closure of unlicensed gold processing plants
“Stakeholders in the sector have meanwhile been urged to ensure that their gold-processing operations, sources of gold and technologies used comply with the emerging regulatory requirements,” Kabeta said.
He stated that the reforms were intended to address challenges of smuggling, under-declaration and revenue losses that have affected the sector for years.
Kabeta noted that a centralised purchasing system through the Bank of Zambia will also improve traceability and help Zambia meet international standards on responsible sourcing.
“The Minerals Regulation Commission will be the key institution responsible for issuing and monitoring the new licences,” he said.
Kabeta said government would undertake sensitisation in all gold-producing provinces to ensure artisanal and small-scale miners understand the new compliance requirements.
He stressed that the reforms were not meant to stifle participation but to formalise the sector and ensure Zambians benefit more from the country’s gold resources.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments