Navigating Opportunities in th...

Zambia's Golden Horizon: Navigating Opportunities in the Precious Metals Sector (May 2025)

Lusaka, Zambia – May 16, 2025 – Zambia's rich mineral wealth, historically dominated by copper, is increasingly seeing a spotlight shine on its gold and precious metals sector. As the global economic landscape evolves, the allure of these timeless assets continues to grow, presenting both exciting opportunities and unique challenges for the nation and its stakeholders. At Chiwempala Heritage Minerals Limited, we are keenly observing these dynamics and are positioned to help our clients navigate this promising terrain.

Current Landscape & Emerging Trends:

The past year has seen a concerted effort by the Zambian government and private sector players to formalize and grow the gold sub-sector. Key trends emerging in early 2025 include:

• Increased Focus on Formalization: There's a continued drive to bring more artisanal and small-scale miners (ASM) into the formal system. This includes initiatives aimed at providing access to finance, technical support, and legitimate markets. The establishment of gold marketing centers in districts like Mumbwa and Rufunsa, with government budget allocations maintained into 2025 for ASM support, underscores this commitment. This formalization is crucial for enhancing transparency, improving safety standards, and ensuring that the nation fully benefits from its gold resources.

• Policy Adjustments to Attract Investment: Zambia has been active in refining its mining policy framework. Notably, the suspension of the 15% export duty on precious stones and metals in early 2025 (reversing an earlier reinstatement) has been a significant development. This move is aimed at making Zambian precious metals more competitive on the global market, encouraging increased investment in exploration and extraction, and ultimately boosting foreign exchange earnings. Such policy agility, while sometimes creating short-term uncertainty, signals a willingness to adapt to market realities and industry feedback.

• Investment in Exploration and Infrastructure: While copper remains a primary focus for large-scale investment (with national targets to significantly boost copper production), the renewed interest in mining is having a spill-over effect on precious metals exploration. The government's nationwide high-resolution aerial geophysical survey to map mineral resources is expected to unveil new potential for various minerals, including gold. Furthermore, strategic investments in logistics, such as the DP World project aiming to establish Zambia as a regional transport hub, will indirectly benefit the export of high-value commodities like gold.

• Growing Importance of ESG: Environmental, Social, and Governance (ESG) considerations are becoming increasingly paramount. Responsible sourcing, community benefit sharing, and minimizing environmental impact are no longer optional but essential for sustainable operations and attracting international partners.

Opportunities for Stakeholders:

The evolving Zambian gold and precious metals sector presents several opportunities:

1. For Investors: The policy environment, particularly the suspension of the export duty, coupled with largely untapped geological potential, offers attractive prospects for investment in exploration, mining, and value addition.
2. For ASM Operators: Increased government support and formalization efforts can lead to better access to finance, equipment, technical expertise, and fair markets, improving livelihoods and safety.
3. For Licensed Traders and Exporters: A more formalized and transparent sector, with clearer regulatory pathways, can streamline operations. The global demand for gold as a safe-haven asset remains robust.

Navigating the Challenges:

Despite the positive outlook, challenges remain:

• Access to Finance: Particularly for ASM and local medium-scale enterprises, securing adequate financing for equipment and operations can be difficult.

• Logistical Hurdles: While improving, infrastructure for secure and efficient transport of high-value goods from remote mining areas to export points requires ongoing development.

• Regulatory Navigation: Keeping abreast of policy changes and ensuring full compliance with all licensing, environmental, and tax regulations requires diligence and expertise.

• Energy Constraints: Like other sectors, mining operations can be affected by energy supply stability, emphasizing the need for investment in reliable power sources.

How Chiwempala Heritage Minerals Limited Can Assist:

As a commodities company rooted in Zambia and specializing in gold and other precious minerals, Chiwempala Heritage Minerals Limited is well-equipped to support stakeholders in this dynamic environment. Our services are designed to address the very challenges and opportunities present in the sector:

• Documentation and Compliance: We provide expert assistance in navigating the complex web of export permits, ZRA clearances, and other regulatory requirements, ensuring your operations are fully compliant.

• Sourcing and Supply: For clients looking to procure gold (10kg and above) and other minerals, we offer reliable sourcing channels.

• Logistics and Security: We facilitate secure transportation, warehousing, and export logistics, with options for clients to use their preferred providers.

• Refinery Facilitation: We connect clients with reputable refineries, ensuring transparency and quality.

• Support for ASM: Through services like our "ASM Gold Aggregation & Group Refinery Facilitation," we aim to help smaller players access better processing and market opportunities.

• Advisory Services: We offer insights into local compliance and operational support, helping you make informed decisions.

Looking Ahead:

Zambia's gold and precious metals sector is on an upward trajectory. With continued government focus, private sector innovation, and a commitment to responsible practices, the potential for growth and contribution to the national economy is significant. Chiwempala Heritage Minerals Limited is committed to playing a constructive role in this development, fostering transparent and efficient trade that benefits all stakeholders.

Disclaimer: This blog post is for informational purposes only and reflects the general market situation as of May 2025. It should not be construed as financial or investment advice. For specific guidance and services tailored to your needs, please contact Chiwempala Heritage Minerals Limited directly.