Proposed Minerals Regulation Law Poses Investment Risks for Zambia

Zambia's new Minerals Regulation Commission Bill could deter investment and hinder its goal to boost annual copper output to 3 million metric tons. The bill proposes government shareholding in exploration areas before granting mining licenses, raising investment risk concerns from key mining bodies.

Zambia's new Minerals Regulation Commission Bill has raised concerns among investors and industry bodies, potentially jeopardizing the nation's target to increase annual copper output to 3 million metric tons, according to a recent report by Reuters.

The bill, which seeks to enable government acquisition of shareholding in exploration areas before licensing investors, is perceived as increasing investment risks. Zambia's Chamber of Mines (ZCM) and the Association of Zambian Mineral Exploration Companies (AZMEC) have jointly stated that the proposed law could seriously undermine property rights and investor confidence.

President Hakainde Hichilema's administration aims to attract more investments to elevate copper production, but data reveals a downturn, with output falling from 763,000 tons in 2022 to 698,000 tons in 2023. Major investors like Barrick Gold and First Quantum Minerals have proposed significant expansion plans to help achieve this goal.

(With inputs from agencies.)