Zambia is seeking to increase its ownership interests in local mining operations, reflecting a growing trend across Africa toward greater domestic participation in the mining sector.
The country’s state-backed investment company, ZCCM Investments Holdings, recently announced plans to expand its minority shareholdings in mining ventures.
Chief Executive Officer Kakenenwa Muyangwa explained that any increase in ownership would be pursued through commercial negotiations rather than compulsory acquisitions or forced transactions.
According to Reuters, the investment firm currently holds relatively small stakes in several mining operations across the country, in some cases as low as 10 per cent, including projects linked to China Nonferrous Metal Mining Group, First Quantum Minerals and Vedanta Resources.
“There is clear intent for us to have substantial stakes in our existing mining assets,” Muyangwa told the publication on Thursday.
After the 2024 withdrawal of EMR Capital from Lubambe Copper Mines and the subsequent transfer of its controlling stake to JCHX Mining, ZCCM-IH successfully increased its ownership in the mine from 20 per cent to 30 per cent.
Muyangwa also confirmed that the company is currently working to raise its holding in Mingomba Mining from 20 per cent to 25 per cent. The project is backed by KoBold Metals and supported by American investors.
“There’s a gradual move to higher ownership, where we believe being a significant minority gives you more say and leverage in the activities than if you have a very small minority stake,” Muyangwa explained.
The ZCCM-IH chief added that Zambia is not seeking ownership of already operational mines in which the state has no existing interest.
Instead, attention is being directed toward mining projects still under development, with ownership structures expected to depend on whoever controls the primary mining licence.
“Where we already own the licence, we are entitled to ask for an element of a free carry before contributing to the rest of the capital that’s required to develop the mine,” Muyangwa stated, noting that a range between 5 per cent and 15 per cent would be reasonable, although the final level would remain open to negotiation.
The state investment firm is also planning to expand its royalty-to-revenue model, first introduced through its arrangement with First Quantum Minerals at Kansanshi Mining, as part of efforts to support future growth.
“What we are trying to do is to switch from dividends to royalties for predictable cash flows that are insulated from operating cost inflation,” Muyangwa said.
At Kansanshi, where ZCCM-IH owns a 20 per cent stake, the company receives 3.1 per cent of revenue instead of traditional dividend payments.
Muyangwa revealed that the arrangement has generated approximately $110 million since 2022.