Yewa Kumwenda showcasing his Ghana Black Stars jersey gift when the students from the Colorado School of Mines and Georgia State University visted the Zambia Chamber of Mines, June 2024.
Zambia’s cabinet has approved the establishment of a special purpose vehicle (SPV) to manage the country’s mineral wealth, marking a significant shift in its approach to exploiting its natural resources.
The new entity, which will be responsible for investing and trading in minerals, aims to move away from the traditional dividend payment model and adopt a production-based sharing mechanism. This will enable the government to negotiate mineral prices, ensure accurate declaration of mineral consignments, and increase transparency and control over its mineral resources.
As Africa’s second-largest copper producer, Zambia already controls numerous mining assets through ZCCM Investment Holdings, which holds interests ranging from 10% to 20% in mines operated by major companies such as Barrick Gold, Vedanta Resources, and First Quantum Minerals.
The government plans to use the new entity to increase its stakes in new mining projects, boost national revenue, and encourage investors to spend more on social projects. Mines Minister Paul Kabuswe told Reuters in February that Zambia aims to negotiate for larger stakes in new mining projects.
Zambia has set an ambitious target to achieve 3 million metric tons in annual copper output within the next decade, driven by rising demand for copper in the electricity and construction industries. In 2023, the country produced 698,000 metric tons of copper, down from 763,000 metric tons the previous year.
The move is part of Zambia’s efforts to revolutionize its mineral wealth strategy and ensure that the benefits of its natural resources accrue directly to the Zambian people. Africa’s second-largest copper producer, said in April 2024 that, it plans to limit the number of mining licences that a company can hold at a time to curb speculation and promote investment.
In September 2023, a motion was passed in the Zambian Parliament to adopt the Report of the Delegation to the 63rd Session of the Organization of African, Caribbean and Pacific States (OACPS), and the 43rd Session of the African, Caribbean and Pacific States and European Union Joint Parliamentary Assembly (ACP-EU-JPA).
In a related development, a group of students from the prestigious Colorado School of Mines and Georgia State University, sponsored by the National Science Foundation (NSF), recently embarked on a knowledge-sharing tour to Zambia. Led by the esteemed Dr. Rennie Kaunda, lecturer at the minig engineering department at the Colorado School of Mines, the visit aimed to explore opportunities for international collaboration in the mining sector. This exchange program aligns with Zambia’s goals to foster global partnerships and enhance its mineral resource management capabilities.
