Lumwana Mine Exempted from BOZ Export Tracking Directive Due to Local Sales

Lusaka, Zambia: Barrick’s Lumwana mine, Zambia’s second-largest copper producer, has confirmed its exemption from the Bank of Zambia’s (BOZ) Export Proceeds Tracking Framework Directives, implemented in December 2023. This exemption stems from Lumwana’s local sales model, where they do not directly export copper but instead sell concentrate to domestic smelters.

“Lumwana is in full compliance with the directive as we don’t export copper,” stated Anthony Malenga, Lumwana Mine Country Manager, in an exclusive interview. “We produce copper concentrate, which we then sell to local smelters for further processing.”

This clarification comes as the BOZ directive requires all exporters in Zambia to maintain domestic bank accounts and deposit all export proceeds within 90 days. While Lumwana falls outside the scope of this regulation, the directive has generated significant interest due to copper’s crucial role in Zambia’s economy, accounting for over 70% of the nation’s annual exports.

Analysts and economists remain optimistic about the directive’s potential impact. “If implemented effectively, the BOZ framework could lead to increased transparency and a rise in foreign exchange inflows, potentially strengthening the Zambian Kwacha,” commented a leading economic analyst who wished to remain anonymous.

The BOZ framework outlines specific requirements for exporters, including maintaining local bank accounts, submitting customs declarations to the Zambia Revenue Authority (ZRA), and ensuring that receiving banks report transactions electronically to the BOZ. Non-compliance can lead to severe consequences, including the revocation of tax clearance certificates and TPINs.

This publication is actively seeking confirmation from Zambian smelters regarding their compliance with the BOZ directive. Further updates will be provided as they become available.

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