Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Zambia’s proposed minerals regulation law could deter investment and deliver a “fatal blow” to its goal of raising annual copper output to 3 million metric tons, two mining bodies said on Wednesday.
Zambia, Africa’s second biggest copper producer, is proposing a Minerals Regulation Commission Bill that would allow the government to acquire a shareholding in exploration areas before licences to search for minerals including copper are granted to investors.
The proposed law, seen by Reuters on Wednesday, seeks to give the nation’s minister of finance the right to maintain a shareholding in a mining license on behalf of the government if minerals are discovered.
But Zambia’s Chamber of Mines (ZCM), the main mining industry body, and the Association of Zambian Mineral Exploration Companies (AZMEC) said in a joint statement some parts of the proposed law “will drive up the perception of investment risk” in the country.
“(With) 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.
Zambia’s mines ministry was not immediately available to comment.
President Hakainde Hichilema’s government is seeking to attract more investors to boost copper output to about 3 million tons over the decade.
Copper output slumped to 698,000 tons in 2023 from 763,000 tons the previous year, according to data from the ZCM.
Barrick Gold and First Quantum Minerals are among investors that have outlined major expansion plans to boost copper output in Zambia.
(By Chris Mfula and Nelson Banya; Editing by Angus MacSwan and Jan Harvey)
14 Comments
Emmanuel
Am Zambian and we don’t care, Firstly who are they lobbying on behalf of. Let that copper stay in the ground, we can mine for our own INTERNAL use. These investors what to extract 3million tons for themselves pay zero tax and lable us Africa’s second largest exporter.. what a joke
king
i agree. after independence zambia was able to provide every citizen world class education based on british system and better then uk, fully furnished schools and books and healthcare for every citizen – all funded by revenue from the mines. investors must be forced to mfg components like copper water pipes sbd electrical wires in zambia- crest jobs- end corruption and foriegn companies robbing zambias resources .
Chiza
We have been taking the weak position in these investments for too long due to lack of legal backing. Now that we have an opportunity to use similar templates like Botswana we should retract in fear of loss of investor confidence? Let’s go further and review the Bill to declare Citizen rights only for mining rights to compel investment with Citizens only for all mining activities. Recently Botswana has further introduced a bill to declare all mining activities that Government has no interest with a 24% citizen stake. #Declare Mining rights for citizens only.
Dk
Zambia should come and get a template from Botswana. All will be well. Come we will teach u. The minerals belong to citizens first. Not investors first.
Ngosa Dipraham
I’m a Zambian, please allow those who want to invest in do so ,
Innocent Manda
Am Zambian and this proposed regulations are welcome, we need to own more of our resources. Those that don’t like it should take leave.
Peter
I feel what belongs to Zambia should benefit Zambians. Investors’ interest is is to maximize profits to the disadvantage of the citizens. Increasing copper production is not benefiting the country in any way as may currently be the situation. The value of our Kwacha keeps on reducing and yet investors keep on making profits. I blame ourselves for not trusting our on people to do the mining. This country is capable of developing with minimal involvement of foreign investment. Politics have taken our country backward.
Mmangoanana Shapo
That’s a good law….is time all African countries do so
Edward
Attracting investors is one thing. To be given a Benz for a vast land is total lunacy. We are watching from the side lines
John
Well tit for tat why can’t they respect our law like we do whenever we’re in there country!! If there don’t like there should invest somewhere else!! They tell us the same shenanigans all time!!!
Jason
That is the way to go..let this bill be passed into law. It’s our resources so no one should help us formulate laws that will in the end benefit the so called investors.. Next should be determining the value of our minerals for ourselves as African as opposed to what prevails currently were the Britain calls the shorts. If they don’t want let them go to hell
Bernard Kapembwa
We are against investors’ notion of investment, which often translates to exploitation of natural resources (without adding value), displacement of indigenous people without fair compensation, loss of farmland, forests, and eco-friendly spaces.
We demand equity, ensuring a win-win for both investors and locals. To achieve this:
concurrent investment in beneficiation (value addition) is crucial. Each mned ore contains multiple valuable elements or products that can support local industries and voost our economy. Let us prioritize mutually beneficial and sustainable practices.
Mevias
It’s a welcome move,it’s our minerals the government can do what ever they want.
Victor Mwape
The education of most Zambians leaves much to be desired, there a lot of business principals that can be applied and for your on information I trust the government will go ahead for the benefit of the nation, we will wait until we cross the bridge. You just being a coward. In every situation someone will find an opportunity.