By Jane Chanda
Special assistant and advisor to President Hakainde Hichilema for Finance and Investment Jito Kayumba has assured existing mining operators in Zambia that the government’s plan to take a 30 percent stake in future critical-minerals mines will not affect their current operations.
And Kayumba said that no entity with a current license would face expropriation from the state or be forced to restructure their shareholding.
According to Bloomberg news, Kayumba said that Zambia aimed to more than quadruple its copper output by the early next decade, which required billions of dollars in investment to turn early-stage projects into operating mines.
He said that the government had reserved over 40 permits for state ownership, which would be transferred to a state firm to negotiate agreements with partners.
Kayumba said that the state firm would hold significant minority, non-operational stakes in these projects.
He said that discussions were underway with Barrick Gold Corporation, the world’s number two gold producer, for a potential joint venture.
He added that existing operators including subsidiaries of First Quantum Minerals Ltd and Barrick Gold Corporation which accounted for two-thirds of Zambia’s copper production last year, would not be impacted.
Kayumba also said that other operators, such as Abu Dhabi’s International Resources Holding, Vedanta Resources Ltd and China Nonferrous Mining Corporation would also continue unaffected.
He said the government was encouraging new licenses to be issued through joint ventures with Zambians, promoting local participation.
“No entity that currently operates in Zambia today, that currently has a license, will be subjected to any appropriation from the state,” he said. “There will be no demand for them to restructure the shareholding so that either the government or a Zambian company comes in and takes 30%.”
Regarding new licenses, Kayumba, said the government was promoting partnerships with local entities.
“We are encouraging – and this is not mandatory – more joint ventures with Zambians,” he stated.
He further said the approach was not necessarily about state participation, but rather about empowering local communities and Zambian entrepreneurs.
