Kapungwe Nchito warns on gold trading licence requirements
By Edward Caesar Sindele
A legal practitioner, Kapungwe Nchito, has emphasized that gold trading in Zambia requires appropriate licenses.
Speaking on Kapungwe Nchito Practitioners Channel, Nchito, whose firm specializes in mining law and financial regulatory compliance, explained that the Minerals Regulation Commission Act mandates that individuals or companies dealing in gold must obtain a mineral trading permit unless they hold a mining or mineral processing license.
“Non-compliance can result in seizure of goods, criminal liability, regulatory penalties, and operational closure,” Nchito warned.
Nchito’s firm assists clients in Zambia in regularizing and structuring their gold trading operations to ensure compliance with the law.
The government has launched a nationwide crackdown on unregulated and illegal mining, focusing on gold, manganese and other minerals, in response to increased environmental degradation, safety concerns and involvement of undocumented foreign nationals.
Key aspects of the initiative include deployment of defence and security personnel to secure mining sites, closure of illegal sites and confiscation of equipment.
A few months ago, over 25,000 illegal miners were dispersed from Mufumbwe in Northwestern Province and authorities seized gold detectors, excavators and vehicles.
The government aims to transition to a regulated, licensed sector, promoting cooperatives and establishing gold-buying centers to ensure fair market access.
Safety standards and environmental protection are priorities with an inter-ministerial committee addressing environmental damage.
While traditional leaders support the crackdown, artisanal miners face livelihood challenges.
The government insists the move is to replace what it terms as lawlessness and chaos with a regulated industry and is amending the Mines and Minerals Development Act to support small-scale miners.
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