The settlement follows a long legal battle by miners to win compensation for illnesses they say they contracted over decades because of negligence in health and safety.

The buyback represents a shift for Anglo, which has been focused on repairing its bruised balance sheet and investing in growth.

Volcan was Anglo American's biggest shareholder, with a nearly 20% stake.

The miner dug up 829,458 carats in the fiscal year ended June from Liqhobong, in Lesotho, which is its only operating mine.

The government said it had set up 28 mineral trading centres since March to improve revenue collection from small-scale miners.

Average all-in sustaining costs (AISC) incurred by gold miners rose from $988/oz in Q4 2018 to $1,000/oz in Q1 2019.

Mines Minister Richard Musukwa said foreign judgments are not enforceable in Zambia until they are registered in local courts.