The Mining sector, heralded to be the economic backbone of Zambia’s economy, is undergoing significant legal changes. The Mines and Minerals Development Act, No. 11 of 2015, which governed the sector for nearly a decade, has been repealed and replaced by the Minerals Regulation Commission Act, No. 14 of 2024 (MRCA). In this article, a comparison between the 2015 Act and the 2024 Act will be done, highlighting the main changes in regulatory structure, licensing, and taxation.
One of the most notable changes in the new Act is the institutional restructuring of how the mining sector is regulated. Under the 2015 Act, key regulatory functions were housed directly in the Ministry of Mines and Minerals Development. These were previously handled, as shown by section 5 of the Mines and Mineral Development Act 2015, by departments led by the Director of Mines, Director of Geological Survey, the Mining Cadaster, and Director Mines Safety.
The 2024 Act sweeps away these separate departments and consolidates their roles into a single entity. In effect, the new law centralizes tasks that were previously fragmented across various directorates into one commission, namely the Minerals Regulation Commission (MRC).
Another governance innovation in the MRCA is the creation of a Mining Appeals Tribunal to handle disputes under Part IX of the new Act. Under the new system, an aggrieved party can appeal decisions of the MRC first to the Commission itself, then to the independent Mining Appeals Tribunal, and thereafter to the High Court if necessary.
Changes to Licensing and Mining Rights
While the types of mining rights and licenses under the 2024 Act remain broadly similar to those under the 2015 Act, there are important adjustments in how they are administered. The MRCA continues to cover the full spectrum of mining rights, from exploration licenses and large-scale mining licenses to small-scale and artisanal mining rights.
The new law does not introduce mandatory Zambian shareholding for large-scale mining or exploration licenses. However, it maintains that artisanal mining is exclusively reserved for Zambian citizens or cooperatives wholly composed of citizens, while small-scale mining may be undertaken by citizen-owned, citizen-influenced, or citizen-empowered companies. Put differently, as was the case under the 2015 regime, foreigners can hold large-scale mining licenses, but permits such as prospecting permits, small-scale mining licenses, small-scale gemstone licenses, and artisanal mining rights remain restricted to Zambians.
As with the previous Act, there are no nationality restrictions on exploration licenses, large-scale mining licenses, or mineral processing licenses, which remain open to both local and foreign investors.
Compliance Changes
Notably, the MRCA departs from the old Act by expanding opportunities and tightening compliance in the licensing regime. Some key licensing updates include:
Unified One-Stop Licensing:
All applications for mining rights and mineral processing licenses are now processed by the MRC as the central authority. This replaces the multiple departmental approvals previously needed, theoretically making it easier for investors to deal with a single body for all licensing matters.
Larger Scale for Local Operators:
Under section 11 (3) of the new law, there has been an increment in the maximum area that can be held under a small-scale mining license by local companies. Under the 2015 Act, a citizen-influenced or citizen-owned company’s mining right was limited to 120 cadaster units which is about 400 hectares. The 2024 Act boosts this upper limit to 1,000 hectares. This also means foreign companies cannot obtain mining licenses below the 1,000 hectares threshold, indirectly reserving more of the medium-scale ground for local entities.
Artisanal Partnerships:
A novel provision in the MRCA opens the door for partnerships between foreign investors and artisanal miners. Under section 20 (5) of the new Act, a foreign individual or company may partner or enter into joint ventures with a holder of an artisanal mining right, provided they obtain prior written approval from the MRC and the consent of the artisanal miner. This was not explicitly permitted under the old law.
Compliance Deadlines:
To discourage speculative license holding and ensure active exploration, the MRCA requires tighter compliance steps. For example, a holder of a mining right or mineral processing license must survey and demarcate the license area and register a pegging certificate with the Commission within 180 days of the grant. This kind of requirement, present in the Act’s Section 15(2), is aimed at making sure licensees start work promptly and adhere to good conduct of operations. Failure to comply could lead to cancellation of the license. Such provisions continue the regulatory focus on “use it or lose it” for mining rights to prevent hoarding of mineral assets.
It must be noted that under section 97 (2) of the new Act, any licenses, permits or certificates issued under the old Act remain valid under the new law until their normal expiry or revocation.
Taxation and Royalty Regime Modifications
Mining legislation in Zambia doesn’t operate in isolation, it works in tandem with the country’s tax laws and regulations that determine royalties, duties, and other levies on the sector. The Minerals Regulation Commission Act itself largely upholds the fiscal terms that were in place under the 2015 Mines Act, but its introduction coincided with some notable tax-related changes via separate instruments, and it seeks to provide a stable, competitive environment for investors.
Mineral Royalties:
The MRCA largely retains Zambia’s existing mineral royalty structure, with rates varying by mineral type: 5% on most base metals, energy, and industrial minerals, 6% on gemstones and precious metals, and a sliding scale for copper (4%-10% based on price). These rates align with the 2015 Act, ensuring consistency for investors.
Property Transfer Tax (PTT):
One new development affecting the mining sector’s taxation is the introduction of a specific Property Transfer Tax regime for mining rights. In late 2024, alongside the MRCA, the government enacted the Property Transfer Tax (Amendment) Act No. 27 of 2024, which came into effect on 1 January 2025. This law imposes PTT on the transfer of mining and exploration licenses at the point of a sale or change in ownership. The rates are set at 10% of the realized value for a mining license, 8% for an exploration license, and 10% for a mineral processing license.
Previously, transfer of shares in mining companies or transfer of licenses would attract the general PTT rate (5% or varying rates), but this new schedule specifically targets mining rights at higher rates, ensuring the government captures a share of the value when mineral assets change hands.
Export Duty on Gemstones and Precious Metals:
Although not a change in the new Act, perhaps the most headline-grabbing tax change has been the removal of the 15% export tax (duty) on precious stones and precious metals. This export levy, which applied to gemstones like emeralds and certain metals, had been a point of contention. It was initially introduced some years ago, suspended in 2019 by Statutory Instrument No. 82 of 2019, then reintroduced by Statutory Instrument No.88 of 2024 which was supposed to take effect in January 2025, only to be revoked by February 2025 via a statutory instrument amid industry outcries. Statutory Instrument No. 4 of 2025 officially suspended the 15% export duty on these minerals.
Beyond these changes, the broader tax regime for mining still remains investor-friendly: corporate income tax on mining companies is held at 30% and 0% withholding tax on dividends from mining investments to encourage reinvestment.
Conclusion
Zambia’s mining sector has undergone significant legal reforms with the repeal of the 2015 Mines Act and the enactment of the 2024 Minerals Regulation Commission Act (MRCA), centralizing regulatory functions under the Minerals Regulation Commission and introducing a Mining Appeals Tribunal. While the licensing framework remains largely intact, key changes include expanded small-scale mining rights for locals, allowance for foreign-artisanal partnerships, and stricter compliance measures. The MRCA retains the existing mineral royalty structure, while a new Property Transfer Tax regime imposes higher rates on mining rights. These reforms aim to streamline regulation, enhance local participation, and maintain a stable investment climate.
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