Zambia to Retain Majority Stake in Key Mining Projects
Zambia’s government plans to maintain a majority stake in certain promising mining licenses identified through an ongoing mapping exercise, while inviting private investors to develop these assets through joint ventures with the state.
Mines Minister Paul Kabuswe announced that the government has established a special purpose vehicle (SPV) to facilitate investment as part of Zambia’s strategy to boost copper production.
As Africa’s second-largest copper producer, Zambia aims to surpass 1 million tonnes of copper output by the end of 2025.
The SPV will hold licenses for key areas and seek commercial partners for exploration and mining agreements, Kabuswe explained.
The Zambian government, through ZCCM Investment Holdings, already holds several mining assets and plans to more than quadruple copper output to 3 million tonnes by 2031.
Achieving this ambitious target will require multiple exploration projects currently being identified by the government. The newly formed SPV is expected to control at least 30% of critical minerals production from future mines, though Kabuswe has stated that the government will hold a 45% stake in any joint venture.
Zambia’s copper production is currently dominated by subsidiaries of First Quantum Minerals and Barrick Gold, which accounted for approximately two-thirds of the country’s output in 2023.
New exploration projects, such as the KoBold Metals’ Mingomba project backed by Bill Gates and Jeff Bezos, are expected to contribute 1.2 million tonnes of copper annually.
