Zambia’s recent plan to increase its ownership stake in specific mining projects will not impact current operations or exploration activities, a senior government official has confirmed. In August, the Ministry of Mines introduced a policy for a state-owned entity to hold at least a 30% share in future critical mineral projects. This approach is designed exclusively for over 40 government-reserved mining permits, and the government plans to attract investment partners to develop these assets, explained Jito Kayumba, special assistant for finance and investment to President Hakainde Hichilema. “No entity currently operating in Zambia with an existing license will be subject to any state appropriation,” Kayumba clarified. “There will be no requirement for these companies to adjust their shareholding structure to accommodate a government or Zambian company share of 30%,” he added during a phone interview. As Africa’s second-largest copper producer, Zambia aims to significantly boost its copper production by the early 2030s. This ambitious target will require substantial investment to turn early-stage projects into fully functioning mines. In 2023, subsidiaries of First Quantum Minerals Ltd. and Barrick Gold Corp. accounted for roughly two-thirds of Zambia’s copper output, and both companies are actively working to expand production. Other major industry players include Abu Dhabi’s International Resources Holding, Vedanta Resources Ltd., and China Nonferrous Mining Corp., all of which operate established mines in the country. Additionally, KoBold Metals, supported by Bill Gates, has embarked on a large-scale exploration program to uncover new mineral resources in Zambia.

Publisher: CONSTANCE

Source:https://copperbeltkatangamining.com/zambias-new-policy-on-mining-stakes-to-preservecurrent-operations/