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The Zambia Chamber of Mines (ZCM) has issued a strongly-worded statement criticising government’s proposed policy initiatives under the new Mineral Regulations Authority, labeling them as an unprecedented threat to investor property rights.
The Chamber warned that if the government did not revise these proposals, it risked undoing progress made since 2021 in attracting mining investment to Zambia.
The Chamber expressed concern that the international community was now scrutinising these developments, perceiving them as a significant policy reversal.
“Industry representatives point to a serial unwillingness by the relevant government ministries to consult meaningfully and at an early stage with the industry,” the Chamber stated.
The statement highlighted that policies and draft laws had been conceived and drafted in isolation, with industry consultation treated as an afterthought.
The Chamber criticised the government’s failure to address detailed industry concerns and counter proposals, describing the proposals as commercially impractical and, in some cases, abnormal in their application to the mining sector.
The Chamber had previously voiced concerns about the Minerals Regulation Commission Bill, currently before Parliament, which it argued grants unaccountable and arbitrary discretionary decision-making powers to regulators, posing corruption risks.
“This at a time when there are already inexplicable actions by the Mining Cadastre to reallocate or carve up licenses,” the Chamber added.
Additionally, the Chamber expressed alarm over the recently released National Critical Minerals Strategy 2024-2028, which mandated a minimum 30 percent state stake in all new mines, as well as an additional 30 percent ‘production share.
The Chamber noted that the lack of definition for ‘production sharing’—a mechanism typically used in the oil and gas sector—could lead to an additional 30 percent royalty on top of the existing mineral royalty tax (MRT).
“These proposals are so far outside the norm for global mining investment that they will undoubtedly deter potential investors from exploring Zambia,” the Chamber concluded.
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