ZCCM-IH Targets Larger Stakes in Zambia’s Mining Assets Under Commercial Expansion Strategy
ZCCM-IH to increase minority stakes in Zambia copper mines under commercial terms as it expands royalty-based revenue model
Zambia’s state-owned investment company ZCCM Investments Holdings (ZCCM-IH) plans to increase its minority stakes in selected mining assets, with any adjustments to be made strictly on commercial terms rather than through compulsory or forced divestments, according to Chief Executive Officer Kakenenwa Muyangwa.
The move reflects a broader trend across African resource-rich economies seeking to secure a greater share of revenues from their mineral wealth, particularly as global demand for critical minerals accelerates investment in copper and related commodities.
ZCCM-IH currently holds minority interests some as low as 10% in several mining operations, including assets controlled by China Nonferrous Metal Mining Group, Canada’s First Quantum Minerals, and India’s Vedanta Resources (Vedanta Resources).
“There is a clear intent for us to hold more substantial stakes in our existing mining assets,” Muyangwa said in an interview with Reuters.
The company has already begun increasing its exposure. It raised its stake in Lubambe Copper Mines to 30% from 20% last year following the exit of EMR Capital in 2024, when the firm sold its majority stake to China’s JCHX Mining.
ZCCM-IH is also in the process of increasing its stake in KoBold Metals’ Mingomba project backed by U.S. investors to 25% from 20%, according to Muyangwa.
He noted that the strategy focuses on building “significant minority” positions that provide greater influence in operations and strategic decisions without pursuing full control of operating mines.
ZCCM-IH has no plans to acquire full ownership of producing mines where it currently has no equity.
Instead, it is prioritising projects under development, where ownership structures are still being defined at the licensing stage.
In cases where ZCCM-IH already holds mineral rights or licences, the company may negotiate a “free carry” stake of between 5% and 15% before contributing additional capital toward mine development costs, with final terms subject to negotiation.
Zambia, Africa’s second-largest copper producer, aims to more than triple annual copper output to 3 million metric tons by 2031, driven by rising global demand for electric vehicle batteries and the energy transition.
Shift Toward Royalty-Based Revenue Model
To help finance its expansion strategy, ZCCM-IH is seeking to replicate its royalty-based revenue arrangement at Kansanshi Mining with other assets.
The model replaces traditional dividend flows with more predictable cash income streams.
At Kansanshi, where ZCCM-IH holds a 20% stake in Kansanshi Mining, the company receives a 3.1% revenue-based royalty instead of dividends.
Since 2022, this arrangement has generated approximately $110 million, Muyangwa said.
“We are trying to shift from dividends to royalties to secure more predictable cash flows that are less exposed to operating cost inflation,” he explained.
He also added that ZCCM-IH is considering appointing financial advisers to support capital raising initiatives linked to its broader expansion plans across the mining sector.
