Epcoro Sets Ambitious Goal of $1 Billion in Gold Purchases for 2023

Epcoro, Bolivia’s state gold trader, aims for $1 billion in purchases this year to enhance central bank reserves. The firm has significantly increased its gold acquisitions from local producers while addressing economic challenges, including inflation and currency devaluation. Epcoro’s strategic cash payments may alleviate miners’ struggles in the current financial landscape.

Bolivia’s newly established state gold trading firm, Epcoro, has ambitious plans to enhance the country’s gold reserves by targeting $1 billion in purchases this year. The company has reportedly acquired one ton of gold from small-scale producers so far, a notable increase from a total of 2.4 tons in the previous year, according to its CEO, Pablo Cesar Perez.

With global gold prices reaching near-record highs due to ongoing inflation concerns, Epcoro projects selling approximately 10 tons of gold to the central bank in 2023. This endeavor comes as Bolivia’s central bank grapples with dwindling reserves amidst financial challenges, including the recent decision to reduce fuel subsidies for miners and farmers.

The country’s economic difficulties, exacerbated by a lack of investment in natural gas fields and a substantial dollar shortage, have caused significant issues for both importers and exporters. Inflation currently stands at a multi-decade high of 13%, contributing to a growing economic crisis.

In light of these challenges, Epcoro aims to facilitate gold production by offering cash upfront to miners, significantly influencing their willingness to sell in the depreciating local currency, the boliviano. Despite the steep decline of Bolivia’s gold exports last year, Epcoro has positioned itself as an attractive alternative for local producers.

CEO Perez has also defended the legitimacy of their gold supply amid claims regarding potential involvement in laundering illegally sourced gold. He noted that Epcoro is striving to be a key supplier to the central bank, which currently holds only $1.98 billion in international reserves, predominantly in gold. Despite not yet fully meeting this objective, Perez remains optimistic about Epcoro’s role to enhance Bolivia’s gold value and contribute to the financial stabilization of the central bank.

In summary, Bolivia’s Epcoro aims to expand its gold acquisitions to $1 billion this year to support the central bank amidst ongoing economic challenges. The firm seeks to facilitate local gold sales by providing cash in the depreciating boliviano, even as it navigates scrutiny regarding its gold’s origin. With a goal of becoming a primary supplier to the central bank, Epcoro is poised to play a pivotal role in boosting Bolivia’s national reserves.

Original Source: www.mining.com