Zambia’s Chamber of Mines has raised alarms over proposed legislative and policy reforms, calling them an “unprecedented threat” to investor rights and a potential roadblock to the country’s goal of quadrupling copper production.
The industry group, which includes major players such as First Quantum Minerals Ltd. and Barrick Gold Corp., opposes a draft law and related plans that aim to increase state control over certain minerals.
In a statement issued Tuesday, the Chamber criticized President Hakainde Hichilema’s administration for its “serial unwillingness” to engage in meaningful consultations with mining companies. They warned that the government’s actions could reverse the progress made since 2021 in attracting investment. Copper accounts for about 70% of Zambia’s export earnings, making the sector critical to the nation’s economy.
Hichilema has spent much of his time in office mending relations with the copper industry, after ties were strained under his predecessor due to inconsistent policies.
As Africa’s second-largest copper producer, Zambia is aiming for an ambitious output of 3 million tons by the early 2030s—up from less than 700,000 tons in 2023. Achieving this will require substantial investments to turn exploration projects into fully operational mines.
However, the Chamber expressed concern over the government’s recent plans to form a state-owned company that would control at least 30% of future critical mineral production, including copper. This, they argue, would discourage potential investors from exploring in Zambia, especially since the state intends to acquire this stake “at no cost.”
The Chamber also criticized a proposed overhaul of mining sector governance, warning that it would grant unchecked discretionary powers to regulators, posing a risk of future corruption.
According to government data, subsidiaries of First Quantum Minerals and Barrick Gold accounted for roughly two-thirds of Zambia’s copper output in 2023. Other major players in the Chamber include units of Vedanta Resources Ltd. and Abu Dhabi’s International Resources Holding.
Mines Minister Paul Kabuswe has yet to respond to requests for comment.
