Zambian mines look to new leader to unlock $2bn investment

Photo of Zambia President-elect Hakainde Hichilema

Zambia President-elect Hakainde Hichilema

20th August 2021

By: Bloomberg


Font size: - +

Copper producers are ready to start expansion projects worth $2-billion in Zambia next year if the industry can reach an agreement on royalties with President-elect Hakainde Hichilema’s new administration.

Companies including First Quantum Minerals and EMR Capital are ready to raise funding for the projects, while other producers need to spend “hundreds of millions on dollars” in capital that they’d held back since 2019 because of tax changes that deterred investment, the Zambia Chamber of Mines said.

Despite the southern African nation’s copper production edging higher to a record last year, output has largely stagnated over the past decade because of the industry’s hostile relationship with outgoing President Edgar Lungu’s government. In 2010, Zambia produced nearly twice as much of the metal as the Democratic Republic of the Congo to the north. By last year, Zambia’s output was almost half that of the DRC’s, limiting the benefit of record prices.

“The president-elect has reset the tone to one of rebuilding confidence and spurring growth,” Chamber of Mines president Godwin Beene said in response to emailed questions Thursday. “The industry is very positive that with this common-goal approach to the way forward, there will be more of a partnership with government than we have ever seen before.”

First Quantum, which accounts for more than half of Zambia’s copper output, declined to comment.

The mining companies’ main request to the government is that they be allowed to deduct mineral royalties from the tax they pay on profits, according to Beene. They also want sliding-scale taxes that are levied on a pay-as-you-earn basis, he said.

Hichilema, who won last week’s elections by a landslide and has pledged to implement stable and predictable policies, is due to deliver his inauguration speech on August 24 and is expected to make more detailed economic pronouncements.

Edited by Bloomberg



Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.


Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.26 0.297s - 113pq - 2rq
1: United States
Subscribe Now
2: United States