Zambia's Minerals Law: Potential Impact on Copper Investment

Zambia's proposed Minerals Regulation Commission Bill could deter investment and impede plans to boost annual copper output to 3 million tons. Key industry bodies warn the bill's provisions may increase investment risks, harm property rights, and introduce corruption risks, potentially undermining the mining sector's growth.

Zambia's newly proposed Minerals Regulation Commission Bill has raised alarms within the mining sector, potentially deterring investment and jeopardizing plans to increase annual copper output to 3 million tons, according to two major industry bodies.

The Chamber of Mines and the Association of Zambian Mineral Exploration Companies expressed concerns that aspects of the bill could elevate investment risks in Zambia, particularly criticizing the 'free carry' acquisitions and discretionary decision-making powers granted to regulators. These provisions, they argue, could infringe on property rights and foster future corruption.

President Hakainde Hichilema's administration, which came into power in 2021, aims to revitalize Zambia's investment appeal and boost copper production. The move is critical given the recent decline in copper output and the global shift to cleaner energy. Significant investments by industry giants and a recent $1.1 billion pledge by IRH to expand Mopani Copper Mines highlight the sector's potential if conducive policies are implemented.

(With inputs from agencies.)