ZAMBIA’S Mines Minister, Paul Kabuswe, has unveiled plans to negotiate larger holdings in new mining projects as part of a strategy to enhance revenue and increase investor spending on vital social projects. Kabuswe’s remarks signal Zambia’s proactive stance in maximising benefits from its significant copper resources.
The initiative, spearheaded through the state-owned ZCCM-IH, is aimed at future agreements and excludes existing mines, ensuring continuity and stability for current investors, Kabuswe said. Zambia, Africa’s second-largest copper producer, holds interests ranging from 10 percent to 20 percent in mines operated by major players like Barrick Gold, Vedanta Resources, and First Quantum Minerals.
In a bid to foster mutually beneficial partnerships, Kabuswe emphasised the importance of a balanced approach that prioritises social impact alongside economic gains. ‘Stakes in new tenements will actually be moulded around such kind of partnerships,’ Kabuswe stated during an interview at the Africa Mining Indaba. ‘We want to make sure that there is win-win, that there is no slave-master relationship,’ he added.
While Zambia has set ambitious targets for copper production, challenges at some operations have impeded progress. Kabuswe affirmed the government’s commitment to robust negotiations while maintaining investor confidence. ‘We are going to be very strong in negotiations,’ he asserted, ‘But not too strong to the extent of scaring away potential investors.’
Additionally, Zambia intends to venture into mineral trading by purchasing copper and other minerals from projects it holds stakes in, creating new avenues for revenue generation. While the specifics of establishing a trading house are under development, Kabuswe disclosed that a special purpose vehicle has received approval from the Zambian cabinet.
Amidst these developments, Zambia is closely monitoring challenges facing First Quantum’s Panama mine, with hopes for swift resolution. Kabuswe stressed the government’s supportive stance, indicating a commitment to preserving stability and fostering a conducive environment for investment.
As Zambia navigates its mining sector’s evolution, Kabuswe’s assurances underscore the nation’s determination to harness its mineral wealth for sustainable development and equitable prosperity.