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Zambia’s parliament has approved two mining reform bills, which will soon be signed into law by its President, a senior government official said.
The Mining Regulations Commission Bill and Geological and the Minerals Development Bill will replace the existing Mines and Minerals Development Act of 2015 and are central to southern African country’s strategy to increase annual copper production nearly four-fold from the current 800,000 metric tonnes to 3 million metric tonnes by 2031.
Chaanza Chifwepa, Principal Exploration Geologist, Ministry of Mines and Minerals Development said the reforms aim to increase transparency, attract investment, and strengthen compliance within the sector.
“The Mining Regulations Commission Bill will regulate the sector and provide visibility for compliance and investment protection, while the Geological and Minerals Development Bill addresses policy aspects,” he explained on the sidelines of The Mining Show in Dubai on Tuesday.
A newly created Investment Promotion Department will work with a Special Purpose Vehicle (SPV) established by the Ministry to facilitate public-private partnerships (PPPs) for mining projects, starting from the exploration stage.
“We want to see the transformation of our economy where the government has a participatory role but one that also protects the interests of the investors,” Chifwepa said.
The ministry has blocked areas for bidding and collaborative operations with the private sector.
“We're trying to do away with speculative holding of licenses. If there's any that has been non-compliant we either cancel and reserve those good looking areas that we can market through a bidding process,” he explained.
Last month, Bloomberg had reported that more than 40 permits for critical minerals reserved by the ministry will be transferred to SPV, which will then negotiate agreements with partners.
Chifwepa also stated that the Zambian government has invested $100 million in a high-resolution geophysical survey to attract private investors and expedite the timeline for discovering and mining new resources. The survey, which began in July 2023, is expected to be completed by 2026.
(Reporting by Anoop Menon; Editing by SA Kader)
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