Zambia to Establish New Mineral Investment Entity to Boost Revenue
Zambia’s Cabinet announced on Wednesday its approval to establish a new entity dedicated to investment and trading in minerals, aimed at enhancing earnings from the country’s natural resources.
As Africa’s second-largest copper producer, Zambia currently holds various mining assets through ZCCM Investment Holdings. The government plans to create a Special Purpose Vehicle (SPV) for investment and trading purposes, shifting away from the traditional dividend payment model to a production-based sharing mechanism.
This change is intended to ensure that benefits from mineral resources extend beyond statutory obligations to benefit the Zambian people, the Cabinet explained.
The new business model will enable Zambia to negotiate mineral prices effectively, oversee accurate declarations of mineral consignments for export and domestic use, and facilitate the equitable sharing of produced minerals.
ZCCM Investment Holdings has interests in mines including those owned by Vedanta Resources and First Quantum Minerals. Recently, it divested a 51% stake in Mopani Copper Mines to a unit of the United Arab Emirates’ International Holding Company while retaining the remaining shares.
In February, Mines Minister Paul Kabuswe disclosed to Reuters Zambia’s strategy to secure larger stakes in new mining projects, aiming to increase revenue and encourage investor spending on social projects.
Zambia produced 698,000 metric tons of copper in 2023, slightly down from 763,000 metric tons the previous year, with plans to achieve an annual output of 3 million metric tons within the next decade to meet rising demand in electricity and construction industries.
