In a move that could significantly alter the landscape of critical minerals production in Africa, Zambia has announced plans to establish a state-owned investment company that will control at least 30% of the output from future mines.
Mines Minister Paul Kabuswe unveiled the strategy on Thursday, emphasizing its importance in maximizing the benefits the country derives from its vast deposits of metals essential for the energy transition. As Africa’s second-largest copper producer, Zambia aims to more than quadruple its output of the metal by the early 2030s, but its mineral wealth extends beyond copper to include cobalt, graphite, and lithium.
“Our goal is to ensure that Zambia benefits fully from the immense potential of our critical minerals,” Kabuswe stated during the announcement in Lusaka. “By establishing this investment company and implementing a production-sharing mechanism, we are taking a proactive approach to securing a sustainable and prosperous future for our nation.”
The state-owned vehicle will invest in critical minerals projects under a framework that includes a mandatory 30% share of production from new mines. This move is expected to bolster Zambia’s position as a global player in the critical minerals market and provide a much-needed boost to its economy.
Several major mining companies, including Barrick Gold Corp, First Quantum Minerals, and China Nonferrous Mining Corp, are already investing in Zambian copper projects. Additionally, the Konkola and Mopani copper mines, controlled by Vedanta Resources Ltd. and Abu Dhabi’s International Resources Holding, respectively, are expected to ramp up production.
To achieve its ambitious target of producing 3 million tons of copper annually by 2031, Zambia will need existing assets to double their output to approximately 1.4 million tons. The government is also banking on exploration projects, such as the Bill Gates-backed KoBold Metals’ Mingomba project, to contribute significantly to this goal.
In addition to the production-sharing mechanism, the government intends to introduce measures to promote local procurement and restrict the export of unprocessed materials. By requiring investors to allocate at least 35% of procurement costs to local suppliers, Zambia aims to stimulate economic growth and create jobs within the country.
“We believe that a strong and vibrant local supply chain is essential for the long-term sustainability of our mining industry,” Kabuswe added. “By restricting the export of unprocessed materials, we are encouraging value-added activities within Zambia and maximizing the benefits for our people.”
The government’s strategy marks a significant step forward in Zambia’s efforts to secure its place in the global critical minerals market. As the demand for these metals continues to grow, Zambia’s abundant resources and proactive policies position it as a key player in the energy transition.