Zambia’s Proposed Minerals Regulation Law Faces Backlash from Mining Industry
Zambia's new Minerals Regulation Commission Bill has sparked concerns among key mining industry groups, who warn that it could deter investment and harm the country's objective to increase annual copper production to 3 million metric tons. As Africa's second-largest copper producer, Zambia's move to reform its mining laws has drawn significant attention.
The proposed legislation would grant the Zambian government the ability to acquire a stake in mineral exploration areas before granting licenses to investors. Additionally, the bill would allow the finance minister to maintain a government shareholding in mining licenses if mineral deposits are discovered.
The Zambia Chamber of Mines (ZCM) and the Association of Zambian Mineral Exploration Companies (AZMEC) have voiced opposition to certain aspects of the proposed law, arguing that it could heighten perceptions of investment risk in the country. In a joint statement, the industry groups warned that the bill's provisions for potential "free carry" acquisitions by the state in new ventures could undermine property rights and discourage investment.
The country's Ministry of Mines has not yet responded to requests for comment on the proposed legislation. Meanwhile, President Hakainde Hichilema's administration is eager to attract investors to help increase copper output to 3 million metric tons over the next decade. Copper production in Zambia fell to 698,000 metric tons in 2023, down from 763,000 tons in the previous year, according to data from the ZCM.
Major investors, including Barrick Gold and First Quantum Minerals, have announced plans for significant expansions to boost copper production in Zambia. However, industry stakeholders fear that the new regulatory framework could complicate these efforts, impacting the overall growth of the mining sector.
