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First Quantum Minerals (FQM) has renewed its agreement with the Bank of Zambia (BOZ) to supply refined gold from its Kansanshi mine for the next three years, ensuring a significant portion of the mine’s gold output remains in the country.
The contract extension, signed on 7 August 2025, follows a competitive tender and builds on a similar arrangement that expired at the end of 2024. Since the partnership began in 2021, BOZ has purchased about 2.8 metric tonnes (92,100 ounces) of refined gold from FQM, representing 61% of Kansanshi’s gold doré production during that period. BOZ Governor Denny H. Kalyalya said the agreement reflects mutual trust and commitment, adding, “We look forward to buying more gold from your esteemed firm as we continue to grow Zambia’s reserves.”
Under the terms, the amount of gold sold will be determined quarterly, based on FQM’s kwacha requirements and projected production. Pricing will follow the London Bullion Market Association rate, with payment made in kwacha at the prevailing BOZ mid-rate. FQM expects Kansanshi to produce between 100,000 and 110,000 ounces of gold this year.
FQM Kansanshi General Manager Meiring Burger said the deal supports BOZ’s goal of strengthening the country’s reserves and contributes to a more self-reliant economy. Earlier this week, FQM also announced a $1 billion gold streaming agreement with US-based Royal Gold. Under the deal, Royal Gold will receive gold credits linked to Kansanshi’s copper production, while royalties, taxes, and physical gold sales to BOZ remain unaffected.
Royal Gold has also committed $4.5 million to community and social programmes in Zambia over the life of the mine. FQM Country Director Anthony Mukutuma said the BOZ contract extension and the Royal Gold deal demonstrate strong investor confidence in Zambia’s mining sector, calling the streaming agreement “the largest of its kind globally in the last decade.”
