Zambian Govt and Mining Companies Seek Resolution Over Proposed Mineral Rights Legislation
Zambian mining companies have engaged in discussions with the government to address concerns over a proposed legal amendment that could grant the state a larger share of the country’s mineral resources.
The draft legislation, currently under consideration in Zambia’s parliament, would allow the government to “acquire mining rights for investment.”
This would enable the state to purchase a stake in a mining area before an exploration license is issued and retain ownership after a discovery is made and the site is developed.
The Zambia Chamber of Mines, whose members include First Quantum Minerals Ltd. and Barrick Gold Corp., has voiced strong opposition to the proposed law.
The chamber argued that the current draft would lead to “unaccountable and arbitrary” decision-making, raising concerns within the mining industry.
On Friday, representatives of the chamber met with the Mines Ministry in Lusaka to find common ground on the contested clause.
In a joint statement, both parties confirmed they had “developed a roadmap for the resolution of the matter within the shortest period of time” to reach an amicable settlement.
The chamber also expressed concerns about the government’s plan, announced by Mines Minister Paul Kabuswe last month, to establish a state-owned firm that would control at least 30% of the output of critical minerals, including copper, from future mining projects. Zambia, the second-largest copper producer in Africa, is aiming to quadruple copper production by the early 2030s.
