By Enyichukwu Enemanna
Two mining bodies, Zambia’s Chamber of Mines (ZCM) and Association of Zambian Mineral Exploration Companies (AZMEC) have said a proposed legislation in the nation targeting the sector could deter investment and deliver a “fatal blow” to the plans to raise annual copper output to 3 million tons.
ZCM is the country’s main mining industry. In a joint statement with AZMEC on Wednesday, both bodies said some parts of the proposed law “will drive up the perception of investment risk in Zambia”.
Heritage Times HT recalls that Zambia’s government had proposed a new Minerals Regulation Commission Bill, which seeks to “regulate and monitor the development and management of mineral resources” in Africa’s second-biggest copper producer.
“Unfortunately, due to…the prospect of forced ‘free carry’ acquisitions by the state of stakes in new ventures, this Bill will seriously undermine property rights,” the mining industry bodies said.
“The Bill also grants unaccountable and arbitrary discretionary decision making powers to individual regulators, which present obvious future corruption risks,” they added.
President Hakainde Hichilema who came to power in 2021 had sought to shore up investment in the sector by ramping up copper production.
He also sought to repair sectoral reputation which was largely impacted by the seizure of Konkola Copper Mines from Vedanta by the previous administration in 2019.
The new government has handed the company back to Vedanta as it pushes to raise copper output to 3 million tons per year within the next decade to take advantage of growing demand for the metal, which is key to the global shift to cleaner sources of energy.
According to data from the Zambia Chamber of Mines, copper output slumped to 698,000 tons in 2023 from 763,000 tons the previous year.
Mining majors, including Barrick Gold and First Quantum Minerals are investing billions of dollars into their Zambian copper assets.
The United Arab Emirates’ International Resources Holding (IRH) has pledged to invest $1.1 billion to expand output at Mopani Copper Mines after buying a 51% stake in the company previously owned by Glencore.
