Zambia’s Proposed Mining Law Sparks Investment Fears
Zambia’s ambitious plans to boost copper production to 3 million tons annually are facing a potential setback due to concerns over a proposed minerals regulation law.
The Zambia Chamber of Mines (ZCM) and the Association of Zambian Mineral Exploration Companies (AZMEC) have raised concerns about the law, warning it could deter much-needed foreign investment.
The new Minerals Regulation Commission Bill aims to oversee the country’s mineral resources, but industry leaders argue that certain provisions could create an unfavorable investment climate.
Key concerns include the potential for forced state ownership in new mining ventures and broad discretionary powers granted to regulators.
Zambia, Africa’s second-largest copper producer, has been actively courting foreign investment to revive its mining sector after years of instability.
The government has made significant strides in improving the investment climate, including the return of Konkola Copper Mines to Vedanta. However, the proposed law threatens to undermine these efforts.
Mining giants such as Barrick Gold and First Quantum Minerals have already committed billions of dollars to expanding their operations in Zambia. The United Arab Emirates’ International Resources Holding (IRH) has also pledged $1.1 billion to boost production at Mopani Copper Mines.
If the proposed law is enacted in its current form, it could jeopardize these investments and hinder Zambia’s goal of becoming a global copper powerhouse.
The mining industry is urging the government to reconsider the controversial provisions and create a more conducive environment for investors.
Source: CNBC AFRICA
