Zambia eyes majority ownership of mining permits
The government of Zambia has announced plans to retain a significant stake in promising mining assets through a recently launched Special Purpose Vehicle (SPV), according to Mines Minister Paul Kabuswe.
As the country, Africa’s second-largest copper producer, seeks to ramp up copper production to over 1 million tonnes annually by 2025, the government is aiming to control at least 30% of critical minerals production from future mining ventures. This effort includes partnerships through joint ventures, with the state holding a 45% interest in any such arrangements.
Role of SPV
The SPV will be tasked with licensing specific areas and seeking private sector partners for exploration and development. Zambia already holds several mining assets through ZCCM Investment Holdings and is striving to increase copper output to 3 million tonnes by 2031. Achieving this goal would involve bringing multiple exploration projects into production, including those currently in early phases like KoBold Metals’ Mingomba project, backed by Bill Gates and Jeff Bezos, which is projected to produce 1.2 million tonnes annually.
This initiative comes at a time when subsidiaries of major companies like First Quantum Minerals and Barrick Gold already dominate Zambian copper production, accounting for about two-thirds of the country’s total output in 2023.
Meanwhile, in Zimbabwe, the mining industry, a critical sector for foreign exchange earnings, continues to face severe operational challenges. Power outages and exchange rate losses cost the sector an estimated $500 million in potential revenue in 2024, according to the Chamber of Mines of Zimbabwe. These issues exacerbate the difficulties in maintaining production levels amid fluctuating economic conditions.
