Proposed Mining Law Threatens Zambia’s Copper Production Goals
Zambia’s proposed Minerals Regulation Law could deter investment and deliver a “fatal blow” to the country’s goal of increasing annual copper output to 3 million metric tons, according to two mining organizations.
As Africa’s second-largest copper producer, Zambia is considering a Minerals Regulation Commission Bill that would allow the government to acquire a stake in exploration areas before granting licenses to investors for mineral exploration, including copper.
The proposed legislation, which was reviewed by Reuters, seeks to empower the finance minister to maintain a shareholding in a mining license on behalf of the government if minerals are discovered.
However, the Zambia Chamber of Mines (ZCM) and the Association of Zambian Mineral Exploration Companies (AZMEC) issued a joint statement expressing concerns that certain provisions of the proposed law would “drive up the perception of investment risk” in the country.
The mining bodies cautioned, “With the prospect of forced ‘free carry’ acquisitions by the state in new ventures, this Bill will seriously undermine property rights.”
Zambia’s mines ministry was unavailable for immediate comment.
President Hakainde Hichilema’s government aims to attract more investors to boost copper output to approximately 3 million tons over the next decade.
However, copper production fell to 698,000 tons in 2023, down from 763,000 tons the previous year, according to ZCM data.
Investors like Barrick Gold and First Quantum Minerals have outlined significant expansion plans to increase copper output in Zambia.
