Zambia’s plans to take stakes in new mining projects will not impact companies with existing licenses, according to a statement reported by Bloomberg News.
“No entity that currently operates in Zambia today, that currently has a license, will be subjected to any appropriation from the state,” said Jito Kayumba, President Hakainde Hichilema’s special assistant for finance and investment.
“There will be no requirement for these companies to restructure their shareholding to accommodate a 30% stake for either the government or a Zambian company.”
In August, Zambia’s Ministry of Mines introduced a strategy aimed at ensuring a state-owned company holds at least a 30% interest in future critical minerals projects.
This policy, however, will only apply to more than 40 designated permits currently held by the government, which plans to attract investment partners through this initiative, as reported by Bloomberg.
The Chamber of Mines, representing major industry players, called the new policy “an unprecedented threat,” cautioning that it could reverse Zambia’s recent efforts to attract foreign investment.
Since President Hichilema’s administration took office in 2021, Zambia has worked to increase investment in the mining sector, a crucial driver of its economy, with copper accounting for approximately 70% of the country’s export earnings. Major mining firms, including First Quantum Minerals and Barrick Gold, are part of the Chamber’s membership.
Zambia is targeting an ambitious copper production goal of three million tons per year by the early 2030s, a substantial increase from its 2023 production of under 700,000 tons.
The government plans to transfer its reserved permits to a state-owned company, which will negotiate partnerships while retaining a significant but non-operational minority stake in these projects.
According to Kayumba, discussions are already underway with Barrick, the world’s second-largest gold producer, to explore potential joint ventures for several of the licenses.
