A new Minerals Regulation Commission Bill has been proposed by Zambia’s government to “regulate and monitor the development and management of mineral resources” in Africa’s second-largest copper producer.
In a joint statement, Zambia’s Chamber of Mines (ZCM) and the Association of Zambian Mineral Exploration Companies (AZMEC) expressed concerns that certain aspects of the proposed law “will improve the perception of asset risk in Zambia”.
The mining industry bodies stated that the Bill will significantly undermine property rights due to the potential for the state to forcibly acquire stakes in new ventures through “free carry” provisions.
“The Bill grants individual regulators unchecked and arbitrary decision-making powers, which could lead to significant corruption risks,” They also noted.
The mines ministry in Zambia could not be reached for immediate comment.
President Hakainde Hichilema’s government, which began in 2021, has been working to improve the investment climate and boost copper production, following the previous administration’s 2019 expropriation of Konkola Copper Mines from Vedanta.
The new government has returned the company to Vedanta and aims to increase copper production to 3 million tons annually within the next decade, driven by rising demand for copper, essential for the global shift to cleaner energy.
In 2023, copper output fell to 698,000 tons from 763,000 tons the previous year, according to the Zambia Chamber of Mines.
Major mining firms like Barrick Gold and First Quantum Minerals are investing billions in their Zambian copper projects.
International Resources Holding (IRH) of the United Arab Emirates has committed $1.1 billion to increase production at Mopani Copper Mines following its acquisition of a 51% stake in the company, which was formerly owned by Glencore.