Zambia to keep majority ownership of mining permits

The SPV will license certain areas, and then seek partners for commercial agreements related to their exploration and mining, Kabuswe noted.

The Zambian government already owns several mining assets through ZCCM Investment Holdings. The plan is to more than quadruple the country’s copper output to 3 million tonnes by 2031.

The ambitious goal would require to bring into production multiple exploration projects the government is currently identifying.

Zambia expects its newly created SPV to control at least 30% of critical minerals production from future mines. The minister has however said in interviews with local media that the state company would have a 45% interest in any joint venture.

Subsidiaries of First Quantum Minerals (TSX: FM)) and Barrick Gold (TSX: ABX) (NYSE: GOLD) are responsible for the majority of Zambia’s copper production, accounting for approximately two-thirds of the total output in 2023.

Sites currently in the exploration phase – such as the Bill Gates, Jeff Bezos-backed KoBold Metals’ Mingomba project – are expected to provide 1.2 million tonnes of copper annually.

Zimbabwe’s mining industry, a key foreign currency earner alongside tobacco and horticulture, continues to face significant challenges due to frequent power cuts and exchange rate losses. According to a report published on Thursday by the Chamber of Mines of Zimbabwe (COMZ), the sector lost an estimated $500 million in potential revenue in 2024 as a result of power outages.