Zambia Greenlights Mining Law Reforms to Enhance Copper Production

Zambia is working on two mining reform bills, which will become law once approved by Parliament and signed by the President, following extensive multi-stakeholder consultations, as reported by Zawya. The Mining Regulations Commission Bill and the Geological and Minerals Development Bill are designed to replace the existing Mines and Minerals Development Act of 2015. These reforms are central to Zambia's strategy to significantly increase its copper production, aiming for a nearly four-fold increase, from the current 800,000 metric tonnes annually to 3 million metric tonnes by 2031.

Chaanza Chifwepa, Principal Exploration Geologist at the Ministry of Mines and Minerals Development, spoke about the key objectives of the reforms, emphasizing that they are intended to increase transparency, attract investment, and enhance compliance within the mining sector. According to Chifwepa, the Mining Regulations Commission Bill will play a vital role in regulating the mining industry, ensuring clear visibility for compliance, and providing protection for investments. This, he explained, would help create a more stable and investor-friendly environment. Meanwhile, the Geological and Minerals Development Bill will focus on addressing policy-related aspects of mining, ensuring that the country’s policies align with its broader economic goals and development objectives.

These reforms are part of Zambia’s broader push to enhance its mining sector, which is critical to the country’s economy. As part of this strategy, the government has established a new Investment Promotion Department. This department will collaborate with a Special Purpose Vehicle (SPV) set up by the Ministry of Mines to facilitate public-private partnerships (PPPs) for mining projects, starting from the exploration phase. Chifwepa stressed that the government is committed to transforming Zambia's economy, ensuring that the government has an active, participatory role while simultaneously protecting the interests of private investors. The government believes that this approach will lead to more sustainable and successful mining ventures.

The Ministry of Mines has also taken steps to address the issue of speculative holding of mining licenses. Chifwepa revealed that areas that have been held by non-compliant license holders will either be canceled or reserved for reallocation through a transparent bidding process. This approach aims to ensure that mining areas are used productively and that only serious investors are involved in Zambia’s mining sector. The government’s focus is on attracting legitimate investments that will contribute to the sector's growth, rather than allowing speculative holding, which has often resulted in unproductive land use.

In line with these reforms, the Zambian government has committed $100 million to fund a high-resolution geophysical survey, which aims to attract private investors and expedite the discovery of new mining resources. This survey, which began in July 2023, is expected to be completed by 2026. The results of this survey are expected to provide critical data that will help identify new areas for mining, accelerating Zambia’s exploration and production timelines. This investment in geophysical technology reflects Zambia’s determination to modernize its mining industry and improve its ability to compete in the global copper market.