Zambia to Pursue Larger Holdings in New Mining Projects
Zambia aims to negotiate larger stakes in new mining projects to enhance revenue and promote social initiatives, according to Mines Minister Paul Kabuswe.
The initiative, spearheaded by Lusaka through state-owned ZCCM-IH, will focus on future agreements and excludes existing mines to ensure investor confidence, Kabuswe informed Reuters.
As Africa’s second-largest copper producer, Zambia holds interests ranging from 10% to 20% in various mines, including those owned by Barrick Gold, Vedanta Resources, and First Quantum Minerals.
Recently, ZCCM sold a 51% stake in Mopani Copper Mines, retaining the remainder previously owned by Glencore.
“Stakes in new ventures will be molded around such partnerships,” Kabuswe stated during an interview at the Africa Mining Indaba.
“We want to ensure a win-win situation, avoiding any master-slave relationship and ensuring social impact,” he added.
Despite setting a copper production target of about 3 million metric tons within a decade, Zambia has experienced gradual output declines due to challenges at operations like Mopani and Konkola Copper Mines.
“We will negotiate firmly but not excessively to deter potential investors,” Kabuswe emphasized.
Furthermore, Lusaka plans to purchase minerals such as copper from projects it has stakes in to trade independently. Although the details of establishing a trading house are pending, a special purpose vehicle has received approval from the Zambian cabinet, Kabuswe disclosed.
The Zambian government closely monitors developments at First Quantum’s Panama mine, hoping for a resolution to challenges faced by the Canadian miner.
While First Quantum has not indicated plans to sell or bring in a strategic investor, Kabuswe reiterated Zambia’s close observation, aiming for a positive outcome without adverse effects.
