Zambia has a strong history of copper production dating back close to 100 years and is the second largest producer of copper in Africa. Copper accounts for 70 percent of Zambia’s export earnings. The traditional mineral exports are copper and cobalt with Zambia having one of the highest copper grades in the world and accounting for 20 percent of the world’s emerald production. Other major minerals include zinc, lead, uranium, coal, limestone, gold, and diamonds. This guide provides answers to questions frequently asked by exploration companies and other mining investors interested in Zambia. It provides a broad overview of the regulatory framework applicable to exploration in Zambia.
Historically, the Copperbelt Province has been the hub of mining in Zambia, however, the past decade has seen a shift to increased mining activity, predominantly in the North-Western Province and all the other provinces across the country. In terms of reserves, Zambia’s copper reserves were estimated at 21 million metric tonnes as of 2020.
Mineral potential and geological attractiveness are not the only factors that influence investment decisions. Policy factors such as onerous regulations, taxation regime, the quality of infrastructure, and other policy considerations also play a significant role.
The Zambian government has undertaken to reorganise the mining sector as outlined in the 2022 National Mineral Resources Development policy and the Eighth National Development Plan. Against the backdrop of this policy framework, the government has pledged to introduce legislative reforms to the mining sector to spur growth and investment.
Ambitious plans are in motion to ramp up copper production from the current 800,000 metric tonnes per year to an annual target of 3 million metric tonnes by 2031.
These targets cannot be achieved without a new wave of investment in exploration to realise Zambia’s geological potential. To stimulate investment in mineral exploration, some of the proposed changes include the introduction of a Minerals Regulation Commission to enhance administration and regulatory compliance in the sector. A country wide high resolution aerial geophysical survey is underway and once completed will provide reliable geological data, to help reduce the financial risk of exploration and attract more investment.
This, coupled with the surge in demand for critical minerals such as copper and other minerals used in electronics, electric vehicles and renewable energy technologies is expected to attract increased interest in the mining sector, particularly exploration.
However, the full potential of Zambia’s mineral endowments will not be realised if certain key challenges that the mining exploration sector has grappled with in recent years are not addressed.
Key among these are lack of road infrastructure to access the more remote areas, perceived lack of transparency and independence in the licensing process, inconsistencies in the awarding of exploration rights and speculative hoarding of exploration licences.
Despite the challenges faced, Zambia has a positive outlook for the discovery of new deposits through increased investment in mineral exploration activities.
This guide provides answers to questions frequently asked by exploration companies and other mining investors interested in Zambia. It provides a broad overview of the regulatory framework applicable to exploration in Zambia.
--
Read the original publication at Moira Mukuka Legal Practitioners
