Zambia’s new mining strategy that will see it secure a minimum 30% stake for the government in future critical minerals projects will not affect existing mining operations or exploration activities, according to senior government official Jito Kayumba. Kayumba, an advisor to President Hakainde Hichilema, clarified that the policy applies solely to over 40 permits reserved for the government. Consequently, current mining license holders, including companies like First Quantum Minerals, are exempt from restructuring requirements. This initiative aligns with Zambia’s ambitious plan to quadruple copper production by the next decade – a plan that will require substantial investment to develop new projects. To secure the necessary funds, the government will transfer the reserved permits to a state firm, which will then negotiate agreements with investors to turn these early-stage projects into operating mines.
SOURCE: BLOOMBERG