Navachab surpasses 300kg gold delivery to Bank of Namibia
Navachab Gold Mine has delivered over 300 kilograms of gold to the Bank of Namibia (BoN) since signing a gold purchase agreement in March 2024, with expectations to reach about 600 kilograms by year-end.
George Botshiwe, Managing Director of Navachab, confirmed the mine’s ongoing commitment to supply gold as the central bank builds its domestic gold reserves. “Since signing the contract, we have delivered just over 300kg. Their target is 600kg, so we will continue deliveries until the end of the year,” said Botshiwe.
The gold purchase agreement, signed on 24 March 2024, forms part of BoN’s strategic programme to diversify its foreign exchange reserves by increasing gold holdings to approximately 3% of Namibia’s net foreign exchange reserves. This initiative involves structured monthly purchases of locally produced gold, transacted in Namibian dollars.
While Navachab leads as a key supplier, the central bank plans to source gold from multiple domestic producers, although a similar agreement with B2Gold is still pending. Currently, Namibia lacks refining capacity to meet the international gold purity standard of 99.9% required for reserve assets. Local gold, typically around 85% purity, requires further refining, prompting BoN to engage South African refineries for processing.
BoN Deputy Governor Nicholas Mukasa recently stated that the gold acquisition programme is being implemented in phases, guided by market conditions and supported by governance and risk frameworks. The central bank will review the programme in the first quarter of 2027 after achieving the initial 3% gold reserve target to decide on a possible expansion in the second phase.
“Any decision on the size and scope of further gold purchases will follow a thorough assessment of the current programme’s outcomes,” Mukasa explained.
This gold procurement strategy underscores the Bank of Namibia’s commitment to strengthening domestic reserves and enhancing financial stability through diversification.
