Zambia’s ambitious plan to triple its copper output to three million tonnes annually could be derailed by a proposed minerals regulation law that mining industry heavyweights warn could scare away investors and cripple the sector.
The heart of the controversy lies in the Minerals Regulation Commission Bill, a piece of legislation aimed at overseeing the country’s mineral resources. While the government sees it as a step towards better management, mining giants disagree.
“This bill is a dagger aimed at the heart of Zambia’s mining industry,” said a spokesperson for the Zambia Chamber of Mines (ZCM). “The proposed ‘free carry’ acquisitions by the state and the arbitrary powers granted to regulators create a toxic environment for investment.”
The ZCM and the Association of Zambian Mineral Exploration Companies (AZMEC) have joined forces to express their deep concern over the bill, warning that it could reverse the gains made since President Hakainde Hichilema took office in 2021.
The mining sector has been a beacon of hope for Zambia, with major players like Barrick Gold and First Quantum Minerals pouring billions into the country. The United Arab Emirates’ International Resources Holding (IRH) recently pledged $1.1 billion to expand Mopani Copper Mines.
However, the proposed law threatens to undermine this momentum. “It sends a clear message to the world that Zambia is not open for business,” said an AZMEC representative. “Investors are risk-averse and will look elsewhere for opportunities.”
Copper output has already taken a hit, falling to 698,000 tonnes in 2023 from 763,000 tonnes the previous year. The industry is grappling with the challenge of reviving production while also facing the threat of a new law that could stifle growth.
The government has yet to respond to the mounting criticism, but the mining industry is bracing for a showdown that could determine the future of Zambia’s copper dream.