Mining 2026 Comparisons

Mineral Resources and Production

Zambia is endowed with a wealth of mineral resources. The key minerals mined in Zambia include copper, cobalt, manganese, silver, iron, uranium, lead, zinc, coal, and gemstones such as emeralds, tourmaline, aquamarine, and amethyst. Copper remains the cornerstone of Zambia’s mining industry, accounting for the bulk of its mineral resources and the majority of its export earnings.

To enhance copper production, Zambia has embarked on the National Three Million Metric Tonnes Copper Production Strategy, which aims to increase copper production from the current 800,000+ metric tonnes to three million metric tonnes by 2032.

The Role of Mining in the Economy

The mining sector is the backbone of Zambia’s economy, accounting for over 70% of the country’s export earnings. It contributes significantly to government revenues through taxes, royalties, and employment opportunities.

Government Regulation

The mining industry in Zambia operates within a comprehensive regulatory framework, primarily governed by the Minerals Regulation Commission Act No. 14 of 2024 (the “Minerals Act”) and the Geological and Minerals Development Act No. 2 of 2025 (the “GMD Act”). The Minerals Act provides for the regulation and monitoring of the development and management of mineral resources in Zambia, the management and oversight of mining activities, and the licensing of both small-scale and large-scale operations. On the other hand, the GMD Act provides for geological survey, mapping and exploration in Zambia.

Regulatory oversight is administered by the Ministry of Mines and Minerals Development and Minerals Regulation Commission (the “Commission”) together with the following offices established under the GMD Act:

• director geological survey;
• director artisanal and small-scale mining;
• director of large-scale mining and mineral investment promotion; and
• foreign investment and partnerships.

Zambia’s mining sector is characterised by the coexistence of small-scale, artisanal miners and large-scale operations, with foreign investors predominantly driving the latter. International investors account for a significant portion of copper and cobalt production, bringing advanced technologies and substantial capital investments.

Technological Advancements

The Zambian government has taken proactive steps to modernise and enhance the mining sector. In 2024, a high-resolution aerial geological survey was launched to attract targeted investments and accelerate mineral exploration. This initiative aims to provide accurate geological data, which is critical for ramping up copper production and exploring new mineral opportunities. The initial target areas for the survey include western and north-western provinces, covering districts such as Chavuma, Zambezi, Lukulu, and Kalabo.

In the 2025 national budget, the government announced an increase in the allocation for aerial geological and geophysical mapping to ZMW364.0 million from ZMW160.0 million in 2024. The mapping exercise is expected to define the nation’s mineral resource endowment and attract investment. As of September 2025, the Government reported that the exercise was 34% complete, with the Western Province and parts of the North-Western Province fully covered. The mapping programme is scheduled to continue into 2026.

Challenges and Risks

While the mining industry is vital to Zambia’s economy, it faces several challenges. These are:

• energy shortages in the mining sector;
• fluctuating commodity prices;
• unregulated artisanal and small-scale mining risks;
• unstable mining legislation and policies; and
• underdeveloped road infrastructure making transportation of minerals in and out of Zambia difficult.

Future Prospects and Development

Zambia’s mining industry has a promising future, with several growth opportunities on the horizon. The country has continued to attract investment in the mining sector. Zambia’s untapped mineral deposits, including rare-earth elements and uranium, offer significant investment opportunities. Ongoing and new exploration projects, supported by the government’s geological survey initiatives, are expected to uncover additional resources.

Meanwhile, anticipated improvements in mining policies, such as streamlined licensing processes, aim to attract more investors and ensure sustainability.

Zambia operates a dual legal system that incorporates both statutory and customary law. The legal framework is based on the common law system, inherited from its colonial history.

Mining activities in Zambia are regulated by a combination of statutes, regulations, and environmental laws aimed at ensuring the sustainable and transparent management of mineral resources. The key statutes include the following.

The Minerals Act

The Minerals Act is the principal legislation governing the exploration, mining, and processing of minerals in Zambia. It provides the legal framework for regulating and monitoring the development and management of the country’s mineral resources and establishes the Minerals Regulation Commission, outlining its mandate and functions. The Act also establishes the Mining Appeals Tribunal, which is responsible for resolving disputes arising from mining licences. It also repeals and replaces the Mines and Minerals Development Act, 2015.

The Geological and Minerals Development Act

The Geological and Minerals Development Act (GMD Act) provides the legal framework for geological surveying, mapping, and mineral exploration in Zambia. It establishes the offices of the Director of Geological Survey, the Director of Artisanal and Small-Scale Mining, responsible for promoting the sustainable development of the artisanal and small-scale mining sector, and the Director of Large-Scale Mining and Mineral Investment Promotion. The Act further establishes the Artisanal and Small-Scale Mining Fund.

Mines and Minerals (General) Regulations, Statutory Instrument No 7 of 2016

This covers processes such as applying for mining rights, transferring licences, and renewing mining permits.

The Geological and Minerals Development (Local Content) (Preference for Goods and Services in the Mining Sector) Regulations, 2025, Statutory Instrument No. 68 of 2025 (“Mining Local Content Regulations”)

Under the Mining Local Content Regulations, mining and mining-related companies must allocate at least 25% of their annual procurement budget to local companies supplying core mining goods or services within six months of commencement. This minimum threshold must progressively increase to no less than 40% within five years. The regulations also mandate a 15% margin of preference for local companies during bid evaluations for core mining goods and services. In addition, the procurement of non-core mining goods or services critical to mining operations is reserved exclusively for local companies. The regulations come into effect on 1 January 2026.

Environmental Management Act No 12 of 2011 (EMA)

The EMA provides a framework for environmental conservation and sustainable resource use.

Environmental Impact Assessment Regulations, Statutory Instrument No 28 of 1997

This requires environmental impact assessments (EIAs) for proposed mining projects.

Ionising Radiation Protection Act No 16 of 2005

This governs the handling, storage, and use of radioactive materials, such as uranium, in mining activities.

All rights of ownership in, searching for, mining and disposing of minerals vest in the President. The President holds these rights on behalf of the Republic and the people of Zambia. The rights of landowners in Zambia do not extend to minerals, oils, or precious stones found on or beneath their land. Consequently, even if an individual holds title to land where minerals are discovered, ownership of those minerals remains vested in the President, acting on behalf of the people of Zambia.

Surface rights and mining rights are therefore separate under Zambian law.

The State adopts a hybrid role in the mining sector, functioning as both a grantor-regulator and an owner-operator.

Role of the State as Grantor-Regulator

Under the Minerals Act, the State, acting through the Minerals Regulation Commission, is responsible for granting, suspending, and revoking mining and non-mining rights, regulating industry operations, and promoting research and effective management of the country’s mineral resources.

Complementing this mandate, the GMD Act establishes the offices of the Director of Geological Survey, the Director of Artisanal and Small-Scale Mining, and the Director of Large-Scale Mining and Mineral Investment Promotion, each tasked with overseeing geological mapping, exploration, and the sustainable development of both small-scale and large-scale mining activities.

Role of the State as Owner-Operator

The State also actively participates in mining operations through its investment vehicle, ZCCM Investments Holdings PLC (ZCCM-IH). ZCCM-IH originated from Zambia’s consolidation of mining assets in 1982, following earlier government nationalisations in 1968 and 1969. Initially formed to manage copper mining, ZCCM-IH now holds minority stakes in privatised mining companies and assets, including energy and real estate, while maintaining strategic influence over Zambia’s mining sector.

Additionally, Section 14 of the Minerals Act grants the government the authority to acquire mining rights for purposes of government investment in designated areas. The Section outlines a framework allowing the government to reserve specific areas for investment by acquiring mining rights. These areas are protected from applications by private individuals or entities, ensuring exclusivity for government-led projects. Rights obtained under this provision are then allocated to government investment companies, ensuring compliance with relevant laws.

Article 16 of the Constitution of Zambia recognises the right to property. Specifically, Article 16(u) and (x) of the Constitution provide that property can, among other things, consist of any licence or permit. It also provides that it can be any mineral, mineral oil, natural gas, or any rights accruing by virtue of any title or licence for the purpose of searching for or mining any mineral, mineral oil or natural gas.

Mineral rights, therefore, have the status of property and derive from law under Article 16 of the Constitution and the Minerals Act. Mining rights are thus protected under the Constitution and any person deprived of these rights may be able to challenge the deprivation as being unconstitutional.

In Zambia, the authority responsible for granting mineral rights is the Commission, which functions at the national level. Although recently established and not yet fully operational, the Commission anticipates receiving applications submitted through regional offices, which will then be forwarded to Lusaka for processing.

There is no overlap of jurisdiction between national and provincial structures in the granting of mineral rights, as the process is fully centralised under the Minerals Act.

In Zambia, the framework for security of tenure in the mining sector is established under the Minerals Act. It provides a structured system for granting, maintaining, and enforcing mining rights, ensuring stability and predictability for investors while safeguarding national interests.

Validity of Mining and Other Licences

Exploration licence

An exploration licence is valid for an initial period of four years. On its expiry, it may be renewed for two further and final periods of three years each. At each renewal, a holder of an exploration licence is required to relinquish at least 50% of the exploration area. However, a small-scale exploration licence is not renewable.

An application for renewal must be made six months before the licence expires.

Mining licence

There are three types of mining licences: artisanal, small-scale and large-scale. Artisanal mining can only be undertaken by citizens.

The validity periods are:

• 3 years for artisanal mining;
• 10 years for small-scale mining; and
• 25 years for large-scale mining.

Applications for renewal must be made three months before expiry for an artisanal mining licence, six months for a small-scale mining licence and one year for a large-scale mining licence.

Mineral processing licence

A mineral processing licence is valid for a period of 25 years and may be renewed for a similar period.

Gold panning certificate

A gold panning certificate is valid for two years (renewable for a further two years).

Mineral trading permit

A mineral trading permit is valid for three years and is renewable.

Mineral import and mineral export permits

Mineral import and mineral export permits are valid for one year and limited to the quantities specified in the permit.

The Minerals Act and the Mines and Minerals Development (General Regulations), 2016 require the Commission to inform the applicant when it rejects the renewal of the licence. The notice of rejection must state the reasons/grounds for the rejection. If the applicant is aggrieved by the Commission’s decision, the Mines Act provides an appellate process to the Mining Appeals Tribunal within 30 days of receipt of the rejection.

Conversion of an Exploration Licence to a Mining Licence – Rights

The Minerals Act does not grant an automatic right to a holder of an exploration licence to convert it to a mining licence. A party that seeks to convert an exploration licence to a mining licence must meet the requirements under the Minerals Act to apply for a mining right. These are as follows.

• There are sufficient mineral deposits or resources to justify their commercial exploitation.
• The area of land over which the licence is sought does not exceed the area required to carry out the proposed programme for mining operations.
• The proposed programme of mining operations is adequate and complies with the decision letter in respect of the environmental project brief or is EIA approved by the Zambia Environmental Management Agency (ZEMA).
• Consent is required for the area under any written law, and the applicant must have submitted evidence of that consent.
• The standards of good mining practice and the applicant’s proposed programme for development, construction and mining operations in order to ensure the efficient and beneficial use of the mineral resources for the area over which the licence is sought must have been met.
• The applicant is not in breach of any condition of the exploration licence or any provision of the Mines Act.

In respect of large-scale mining, some of the conditions are:

• that the applicant has the financial resources and technical competence and the financing plan is compatible with the programme of mining operations;
• that the applicant has undertaken to employ and train citizens and promote local business development;
• that the applicant’s feasibility study report is bankable; and
• that the applicant has submitted a capital investment forecast.

Maintenance Requirements

The mining rights established are granted subject to certain conditions. These differ depending on the mining rights. Generally, to maintain the mining licence, holders are required to:

• pay annual area charges;
• payment of the relevant taxes (including mineral royalties)
• adhere to approved work programmes;
• submit various reports;
• comply with the Minerals Act and other relevant legislation; and
• contribute to the Environmental Protection Fund, among others.

Cancellation Procedure

A mining licence can be suspended or revoked for various reasons. The Minerals Act specifies these reasons under various provisions. The Commission can suspend or revoke a mining licence where:

• the licence was obtained by fraud or submission of false information;
• the holder contravenes the Minerals Act, any other written law or any terms and conditions of the right;
• the holder fails to carry out mining operations in line with the approved plan of mining operations and the gross proceeds of sale of minerals from the mining area in any three successive years are less than half of the deemed turnover applicable to the mining licence in each of those years;
• the holder gives false information on the recovery of ores and mineral products, production costs or sale;
• the holder fails to pay annual area charges;
• the holder fails to pay mineral royalty;
• the holder fails to execute the approved exploration programme, in the case of a holder of an exploration licence;
• the holder has ceased to fulfil the eligibility requirements under the Minerals Act; or
• the suspension or revocation is in the public interest.

However, before the Commission exercises this power, it must give written notice to the holder of the licence of the intention to suspend or revoke the licence. The Commission must also give reasons for the intended suspension or revocation and require the holder to show, within 60 days, why the licence should not be suspended or revoked.

The Commission cannot suspend or revoke a mining licence if the holder takes remedial measures to its satisfaction.

Where a person is dissatisfied with the decision of the Commission, the Minerals Act provides that the person can appeal to the Mining Appeals Tribunal within 30 days.

Transferability

A mining right, like any other property right, is transferable. Section 46 of the Minerals Act entitles the holder to do so. However, this right is subject to approval from the Commission and payment of the property transfer tax (PTT).

Similarly, Section 47 of the Minerals Act further requires the consent of the Commission in order for a transfer of shares in a company holding a mining right to be effected. This consent is required for both direct and indirect transfers.

Protection of the Right to Property

The security of tenure of mining rights is also guaranteed under the Constitution. As property, mining rights receive constitutional protection under Article 16. This provision protects a holder from being deprived of property without compensation.

Legal Framework

The primary environmental law in Zambia is the Environmental Management Act No 12 of 2011 (the “Act”), read together with its amendments, such as the Environmental Management (Amendment) Act, 2023. The Act provides for integrated environmental management and the protection and conservation of the environment and the sustainable management and use of natural resources. The Act further provides for:

• the preparation of environmental management strategies and other plans for environmental management and sustainable development; and
• the conduct of strategic environmental assessments of proposed policies, plans and programmes likely to have an impact on environmental management.

It also provides for the prevention and control of pollution and environmental degradation, public participation in environmental decision-making and access to environmental information amongst other things.

Other environmental laws and regulations in Zambia include the following.

• The Forest Act No 4 of 2015, which provides for the establishment and declaration of national forests, local, joint forest management areas, botanical reserves, private forests and community forests and overall sustainable forest management.
• The Environmental Protection and Pollution Control (Environmental Impact Assessment) Regulations (Statutory Instrument No 28 of 1997) (the “EIA Regulations”) provide for essential procedures and requirements for compulsory project briefs and EIAs.
• The Environmental Management (Licensing Regulations) Regulations, 2013, which provide for air quality control. It sets procedures for waste management and deals with hazardous waste to the environment as well as other substances harmful to the environment, such as pesticides, toxic substances and ozone-depleting substances.
• The Environmental Management (Strategic Environmental Assessment) Regulations, Statutory Instrument No 48 of 2021. It provides for the conducting of strategic environmental assessments.
• The Mines and Minerals (Environmental Protection Fund) Regulations, Statutory Instrument No 102 of 1998. These Regulations establish the Environmental Protection Fund, which ensures that a developer will execute an environmental impact statement (EIS).
• The Mines and Minerals (Environmental) (Exemption) (Amendment) Order, Statutory Instrument No 19 of 2000, as read together with the Mines and Minerals (Environmental) (Exemption) (Amendment) Order, Statutory Instrument No 19 of 2000. These Orders exempt Konkola Copper Mines Plc, ZCCM (Smelterco) Limited and Mopani Copper Mines Plc from the provisions of Statutory Instrument No 102 of 1998.
• The Minerals Act, which provides for environmental protection and pollution control, and the Environmental Protection Fund.

Environmental Licensing

The main features of the environmental licensing process for an exploration and mining project in Zambia are as follows.

ZEMA issues an approval authorising a person to conduct exploration or mining activities. A decision letter is granted by ZEMA after an EIA is conducted. The EIA evaluates the potential environmental and social impacts of the mining operations and suggests appropriate mitigation measures and the Act prohibits exploration, mining or mineral processing without an EIA.

The EIA is conducted by the Commission together with ZEMA. The application procedure for ZEMA approval is governed by the EIA Regulations.

EIAs in Zambia fall into two classes depending on the nature of the project. The first category is a project brief, while the second is the EIS. Projects likely to have an adverse environmental impact tend to fall under the EIS category.

ZEMA faces serious challenges that affect its efficiency. Among the most critical challenges are inadequate funding and low staffing levels. During its interactions with stakeholders, the Committee was informed that, due to a lack of funds and inadequate human resources, ZEMA failed to discharge most of its functions, including, but not limited to, environmental audits and monitoring of other activities of licensed facilities. ZEMA’s failure to undertake these activities means that facilities may be wantonly polluting the environment and, thereby, impinging on human health and the wellbeing of the environment.

Zambia has about 640 environmentally protected areas. These include national parks, game management areas, forests, fisheries management areas, private wildlife estates such as game ranches which are managed by the private sector and wetlands and wildlife reserves. The Lower Zambezi National Park and the Kavango-Zambezi Transfrontier Conservation Area are two of these environmentally protected areas. Furthermore, the Protected Places and Areas Act of 1960 allows the President to declare an area a protected area by statutory order. Section 35 of the Minerals Act requires the consent of the appropriate authority for a holder of a mining right or mineral processing licence to exercise any of its rights with regards to any land declared to be a forest nursery and due compliance with the relevant provisions of the Forests Act, 2015 on land declared to be a National Forest, Local Forest, botanical reserve, private forest, a National Park, Community Partnership Park, a Game Management Area or a bird sanctuary.

Protected areas create additional regulatory considerations and stakeholder concerns about mining impacts, affecting exploration, development and mining activities.

If a mineral deposit is found within a protected area, the regulatory process requires an EIA to evaluate potential environmental risks before mining can proceed. An environmental permit for mining in a protected area may include more stringent conditions. Additionally, Section 40 of the Minerals Act requires compensation for any indigenous wood or timber taken on land that is declared a National Forest, Local Forest, botanical reserve or private forest under the provisions of the Forests Act, 2015. It is important to acknowledge that the current regulatory framework may not possess all-encompassing mechanisms required to comprehensively analyse and sufficiently address the possible environmental consequences in sensitive and highly valuable ecosystems.

Zambian laws lack robust provisions and guidelines on mining and its contribution to the sustainable development of the communities in which mining companies operate.

However, Zambia mainly addresses the issue of community relations in mining projects through corporate social responsibility (CSR) frameworks. This is done through mining community development programmes. Section 4 of the Minerals Commission Act states that the development of local communities in areas surrounding the mining area, based on prioritisation of community needs, health and safety, is one of the general principles for mining and minerals development. Furthermore, Section 21 of the Minerals Act provides that the Commission will issue a mining licence to the applicant where the standards of good mining practice and the applicant’s proposed programme of development, and mining operations comply with each other and the undertaking for the promotion of local content, in respect of large-scale mining.

Prior and informed consultation on mining projects is mandatory. Stakeholder engagement is required as part of the EIS process under the EIA Regulations. The developer is required to seek community’s perspective, which is likely to be affected by the project. The views sought are considered in the development of mitigation measures. Regulation 10(1) of the EIA Regulations is categorical and requires that the developer will, prior to submitting the EIS to the Council, take all measures necessary to seek the views of the people in communities that will be affected by the project.

This is a legal requirement carried out by the developer/investor.

Zambia does not have specially protected communities.

Community development agreements (CDAs) in Zambia are not robust, and community development obligations are addressed through the use of business development undertakings, which are required before the issuance of a mining licence.

There is a further obligation to conduct mining operations in compliance with the mining right condition, as well as the EIA and the programme of mining operations, which is compliant with the decision letter issued.

Zambian ESG guidelines are found in a myriad of regulations and policies under the Minerals Act and environmental laws are primarily focused on community development and environmental protection. Some of these are as follows.

Environmental

Environmental authorisation is carried out under the Act as read together with the EIA Regulations and other regulations. Under these, exploration, mining or mineral processing is prohibited without an EIA. Furthermore, the holder of a mining licence must carry on mining operations, with due diligence and in compliance with the programme of mining operations and the EIA.

Furthermore, Section 60 of the Minerals Act provides that the conditions under which a mining right is granted or renewed shall conform to specifications and practices established by national standards for the management of the environment as affected by mining or mineral processing operations.

Social

Applicants for mining rights have various social obligations under the Minerals Act, including the following.

• Holders of large-scale mining licences must employ and train Zambian citizens in accordance with their employment and training proposals. Additionally, Section 4 of the Minerals Act requires the development of local communities surrounding mining areas, prioritising community needs, health, and safety.

It should also be noted that the Commission will issue a mining licence to an applicant under the Minerals Act where, in respect of large-scale mining, the applicant undertakes to employ and train citizens and promote local content.

An EIA also evaluates the potential social impacts of the mining operations and suggests appropriate mitigation measures.

Governance

There are no mandatory governance requirements specifically placed on mining companies. However, it is worth noting that the Minerals Act disqualifies the holding of a mining right to a company which is in liquidation, forms part of a scheme for the reconstruction of the company or for its amalgamation with another company, is not incorporated under the Companies Act of 2017 or has not established a registered office in Zambia.

It also disqualifies a company whose directors or shareholders become undischarged bankrupts, or have been convicted within the previous five years of an offence involving fraud or dishonesty, or of an offence under other written law within or outside Zambia, and sentenced to imprisonment without the option of a fine.

Illegal mining is a major issue in Zambia, with a recent escalation of cases, including illegal gold mining in Kasempa district, as well as the explosive growth of illegal mining sites for minerals in Muchinga, North-Western, Southern, Northern, and Western Provinces. It is highly disruptive to legal mineral production, as it has led to deforestation, soil degradation, and extensive land damage or ruin due to the evasion of environmental regulations. This affects other economic activities dependent on natural resources. Furthermore, government treasuries and companies are deprived of what they would produce and earn because illicit miners are producing and supplying through the back door, thereby distorting the formal mining sector as illegal mining competes with the formal mining sector.

Section 6 of the Minerals Act provides that the functions of the Commission are to prevent illegal mining and minerals smuggling in collaboration with other Government authorities. It also provides that the Commission is, in collaboration with other relevant authorities, responsible for carrying out inspections or investigations on safety issues related to exploration, mining, and mineral processing operations or activities. Furthermore, Section 10 of the Minerals Act provides that a person who explores for minerals or carries on mining operations, mineral processing operations or gold panning, except under the authority of a mining right, mineral processing licence or gold panning certificate granted under the Minerals Act, commits an offence.

The Section is categorical on the criminal sanctions. Section 10(3) of the Minerals Act states that a person who contravenes this provision commits an offence under the Minerals Act is liable, upon conviction in the case of an individual, a partnership or co-operative to a penalty not exceeding 700,000 penalty units (one penalty unity being ZMW0.40) or to imprisonment for a term not exceeding seven years, or to both; or in the case of a body corporate or unincorporate body, to a penalty not exceeding five million penalty units.

Notably, the government has embarked on the formation of mining co-operatives to encourage illegal miners to legally contribute to the nation’s development through the payment of taxes.

Companies usually have recourse to court mechanisms when faced with illegal mining within their licence areas. Remedies sought are usually a declaration that certain operations and mining activities are illegal and an injunction to restrain illegal miners from interfering with the holder’s rights in respect of a licence, as well as damages in respect of loss suffered by a holder of the licence.

A good example of environmental and community relations/consultations around mining projects in Zambia is the environmental requirements to start mining. The conducting of an EIS is required by the Act, as read together with the EIA Regulations, as is the conducting of an EIA. Furthermore, Section 10 of the Minerals Act prohibits mining without an EIA. Section 59 of the Minerals Act provides that environmental health will be considered when granting mining rights. Further, Section 59 of the Minerals Act provides that the Commission shall, in deciding whether or not to grant a mining right, ensure that any mining activity prevents any adverse socio-economic impact or harm to human health, in or on the land over which the right or licence is sought.

A bad example of environmental and community relations/consultations around mining projects in Zambia is the lack of a clear path towards sustainability regarding the relationship between mining companies and their host communities. As stated in 2.3 Impact of Community Relations on Mining Projects, the policy framework in Zambia is vague regarding various important issues related to mining and its contribution to the sustainable development of communities in which mining companies operate. For example, a 2021 case study of the Kabwe Lead-Zinc Mine in Zambia highlighted the effects of the mine’s closure on the community. It revealed that communities in Zambia often sink into a state of abject poverty once a mine closes, as all socio-economic opportunities disappear with the closure, and this has been replicated across various mining towns in Zambia. This shows that the economic, social and environmental decline of the community in this context is mainly attributable to the lack of a socio-economic closure plan at the time of mine closure.

Zambia has undertaken several initiatives to address climate change and its impact on the mining industry. Zambia signed and ratified the Paris Agreement and the UN Framework Convention on Climate Change (the “UNFCCC”) on 21 September 2016 and 9 December 2016, respectively. The overall objective of the two agreements is to stabilise the greenhouse gas (GHG) emissions at a level that would prevent dangerous anthropogenic interference with the climate system and to strengthen the global response to the threat of climate change.

In 2024, the Green Economy and Climate Change Act No 18 of 2024 (the “Climate Change Act”) was passed into law by the Zambian Parliament. The Climate Change Act seeks to, among other things, transpose the UNFCCC and the Paris Agreement into domestic law. The Climate Change Act also seeks to regulate carbon markets and provide environmental and social safeguards for climate change actions and establish a Climate Change Fund. Additionally, the Climate Change Act establishes the Green Economy and Climate Change Council, specifies GHG emission standards and establishes a greenhouse inventory management system. It also includes provisions on carbon stock management, registration of verifiers and enforcement provisions.

Furthermore, prior to the introduction of the Climate Change Act, the Zambian Cabinet approved the declaration of critical minerals such as copper, cobalt and lithium, among others, as strategic minerals in 2023. Under this initiative, the government resolved to transition the country to a green economy. This led to an enhanced mobilisation of financial resources, including in the public sector budget.

It is intended that the Climate Change Act will act as a mechanism for climate change adaptation and disaster risk reduction. Its main features are climate change adaptation and disaster risk reduction; climate change mitigation; low-emission development; a green economy; and related actions.

Some of the salient provisions of the Climate Change Act are as follows.

• Section 10 of the Climate Change Act places a duty on the Minister of Green Economy and Environment to develop a National Adaptation Plan and a National Mitigation Plan, which will be reviewed every five years. This Section transposes Article 4(1)(b) of the UNFCCC, which deals with commitments of the parties, requires the parties to formulate, implement, publish and regularly update national programmes that contain measures to mitigate climate change and to facilitate adequate adaptation to climate change into domestic law.
• Section 4(2)(l) of the Climate Change Act places responsibility for overseeing the revision and updating of the nationally determined contributions (NDCs) on the Department of Green Economy and Climate Change in the Ministry of Green Economy. This is similar to Article 4(2) of the Paris Agreement, which enables parties to determine the efforts that each of them will take to achieve the objectives of the agreement. These efforts are referred to as NDCs and need to be prepared sequentially.
• Article 6(2) of the Paris Agreement introduced the concept of internationally transferable mitigation outcomes (ITMOs), which have been described as a co-operative approach that allows countries to cut their GHG emissions by investing in projects that reduce GHG emissions in other countries. The Climate Change Act seeks to extend the domestication of the notion of ITMO to apply to projects other than those covered by the Forests Act and/or the Forests Carbon Stock Management Regulations.
• Under Article 7 of the UNFCCC, the parties agreed to adopt regular reports on the implementation of the UNFCCC and to publish these reports. This reporting requirement was enhanced under Article 13 of the Paris Agreement, which established an enhanced transparency framework. The Climate Change Act has established mechanisms for collecting and storing data on climate change.
• Article 4(1)(g) of the UNFCCC requires the parties to promote and co-operate in scientific, technological, technical, socio-economic and other research related to the climate system, intended to further the understanding and to reduce/eliminate the remaining uncertainties regarding climate change. Furthermore, Article 6(8) of the Paris Agreement recognises various approaches that can assist countries in the implementation of their NDCs, including finance, technology transfer and capacity building. Accordingly, Section 34 of the Climate Change Act establishes the Green Economy and Climate Change Fund and sets out some of the applications of the Fund.

Zambia has various sustainable development goals (SDGs) as the government of Zambia is committed to the implementation of the transformative 2030 Agenda for Sustainable Development. Some of the SDGs include the following.

• The Climate Change Act transposes various provisions of the UNFCCC and the Paris Agreement into domestic law, thereby demonstrating Zambia’s commitment to effective climate action. The Climate Change Act has not yet been enacted into law. Once enacted, the Climate Change Act will be a significant piece of legislation that aligns Zambia’s legal framework with international obligations in respect of climate action.
• The government of Zambia has resolved to transition the country to a green economy. The National Green Growth Strategy 2024-2030 has been formulated to promote development pathways that lead to Zambia’s transition to a low-carbon, resource-efficient, resilient and socially inclusive economy by 2030.
• The Zambia UN Sustainable Development Co-operation Framework (UNSDCF) presents the collective offer of the UN system to strengthen Zambia’s progress towards the SDGs and the implementation of its international legal obligations.

Zambia does not have legislative initiatives related to energy-transition minerals. However, Section 4(2)(l) of the Climate Change Act places responsibility for overseeing the revision and updating of the NDCs on the Department of Green Economy and Climate Change.

Furthermore, Zambia signed a memorandum of understanding (MoU) on a partnership on sustainable raw materials value chains with the EU, represented by the European Commission, on 26 October 2023. The MoU asserts that securing the supply of strategic and critical raw materials (CRMs) in a sustainable manner is an essential prerequisite for ensuring the green transition.

The availability of strategic and CRMs, such as copper, lithium, cobalt, manganese and natural graphite for batteries, or rare earth elements for permanent magnets for wind turbines, electric motors or computer data storage devices, represents an enabling factor for decarbonising energy production, connectivity, and mobility, while promoting green and digital economic transformation. It also provides for increased extraction and transformation of strategic and CRMs, as well as the development of related value chains, coupled with strong commitments to ESG standards, notably concerning transparency, traceability and the contribution to peace and stability in the region.

Another initiative is Zambia’s critical minerals strategy, which was launched to harness Zambia’s critical mineral resources. The strategy aims to balance geopolitical interests with local impacts, ensuring that the benefits of mineral exploitation reach underserved communities.

Additionally, the government has set an objective to achieve the production of three million metric tonnes of copper by 2032, amongst other objectives in the extractive/mining industry.

The Minerals Act requires holders of mining rights and licences to pay mineral royalty tax (MRT) as consideration for the extraction of minerals from Zambia.

Classification of Minerals

The Minerals Act categorises minerals into five groups, with each being subject to distinct MRT rates. These are:

• base metals: non-precious metals, such as copper, iron, cobalt, and zinc;
• energy and industrial minerals: resources like coal and uranium, used for energy generation;
• gemstones: non-metallic minerals used in jewellery, such as emeralds, rubies, and amethysts;
• precious metals: high-value metals, including gold, platinum, and silver.

Calculation of MRT

MRT is calculated based on either the gross value or the norm value of the minerals.

• Gross value: applies to industrial minerals, energy minerals, and gemstones; calculated as the realised price of the sale free on board (FOB) at the export point or point of delivery within Zambia.
• Norm value: used for base metals (eg, copper) and precious metals, calculated based on international market prices such as the London Metal Exchange (LME) or Fastmarkets MB average monthly prices.

Incremental MRT Rates for Copper

The incremental MRT rates for copper are as follows:

• 4% of the norm value when the regular price is below USD4,000 per tonne;
• 6.5% of the norm value when the regular price is between USD4,000 and USD5,000 per tonne;
• 8.5% of the norm value when the regular price is between USD5,000 and USD7,000 per tonne; and
• 10% of the norm value when the price exceeds USD7,000 per tonne.

Other MRT Rates by Mineral Type

Other MRT rates by mineral type are as follows:

• base metals (excluding copper, cobalt, vanadium): 5% of norm value;
• energy and industrial minerals: 5% of gross value;
• gemstones: 6% of gross value;
• precious metals: 6% of the norm value; and
• cobalt and vanadium: 8% of the norm value.

For tax purposes, the Mines Act does not differentiate between domestic and foreign investors.

Zambia provides a range of incentives aimed at attracting investment and supporting the mining sector. Key incentives include:

• guaranteed input tax claim for ten years on pre-production expenditure for mining, petroleum or gas exploration for registered suppliers in the sector;
• any mining company holding a mining licence carrying on the mining of base metals is taxed at 30%;
• dividends paid by a mining company holding a mining licence and carrying on mining operations is taxed at 0%;
• 25% mining deduction on capital expenditure on buildings, railway lines, equipment, shaft sinking or any similar works; and
• zero rating of capital equipment and machinery listed in the Second Schedule of the Value Added Tax Zero-Rating Order when supplied to a holder of a large-scale mining licence.

Stabilisation Agreements

The mining laws in Zambia do not expressly provide for stabilisation or development agreements. However, similar protections may be found under the Investment Trade and Business Development Act No 18 of 2022 (the “ITBD Act”). Under Section 6(2) of the ITBD Act, the Zambia Development Agency, with the approval of the Minister of Finance and the Attorney General, may enter into an investment protection and promotion agreement (IPPA) on behalf of the government with investors.

While IPPAs are not explicitly termed as “stabilisation agreements”, they can encompass provisions traditionally found in such agreements, such as:

• tax stability;
• protection against expropriation; and
• legislative and regulatory stability.

Under the Property Transfer Tax Act (the “PTT Act”), mining rights are explicitly classified as taxable property. The PTT Act defines property as including mining rights or interests granted under the Mines Act.

A mining right and an interest in a mining right can be transferred. A transfer of an interest in a mining right has been interpreted to include an indirect transfer of shares that granted a person beneficial interest in a mining right.

In order to transfer a mining right or an interest in a mining right, the holder or the right or interest must obtain the approval of the Minister of Mines and must pay PTT to the Zambia Revenue Authority at the following rates:

• 10% of the realised value in respect of a mining right for a mining licence;
• 8% of the realised value in respect of a mining right for an exploration licence;
• 10% of the realised value in respect of a mineral processing licence; and
• 8% of the realised value of the interest in a mining licence, which is classified as shares under the PTT Act.

The term realised value in respect of a mining right means the actual price of the mining right or, as determined by the tax authority, whichever is higher. In respect of an interest in a mining right, the term realised value is the greater of:

• the proportion that the value of the company incorporated in the Republic bears to the value of the company whose shares are being transferred, multiplied by the value of the transferred shares;
• the proportion that the value of the company incorporated in the Republic bears to the value of the company whose shares are being transferred, multiplied by the consideration for the transferred shares; or
• the proportion that the value of the company incorporated in the Republic bears to the value of the company whose shares are being transferred, multiplied by the nominal value of the transferred shares.

Transfers Through Corporate Structures Outside Zambia

The obligation to pay PTT applies irrespective of whether the transfer occurs directly within Zambia or indirectly through corporate structures outside the jurisdiction. In these cases, the transfer is still considered a disposition of property within Zambia if it involves mining rights or an interest in mining (shares), and the tax liability arises as prescribed by the PTT Act.

The Supreme Court in the recent case of Teal Minerals Barbados Incorporated v the Zambia Revenue Authority, Appeal No 4 of 2022 dealt with a transaction in which Teal Minerals Barbados (Teal Minerals) entered into a share purchase agreement with EMR for the purchase of Teal Mineral’s shares in Konnoco, which held 80% of the share capital in Lubambe Zambia, a mining company in Zambia. The Supreme Court decided that an interest in a mining right may either be direct (for example, legal) or indirect (ie, beneficial).

By virtue of Teal Mineral’s shareholding in Konnoco, which in turn held shares in Lubambe Zambia, Teal Minerals held an interest in Lubambe Zambia’s mining rights. Therefore, Teal Minerals transferred its interest in the mining rights held by Lubambe Zambia to EMR. The transaction was therefore subject to PTT. Indirect acquisitions of mining rights through offshore companies will therefore also require the approval of the Minister of Mines and the payment of PTT in Zambia.

Key Features of Attracting Investment in Zambia’s Mining Sector

Regulatory and legal framework

Zambia’s mining industry is governed by the Minerals Act, which provides a robust legal framework ensuring security of tenure, transparent licensing procedures, and protection of investors’ rights. Efforts to streamline bureaucratic processes enhance the ease of doing business, making the sector more accessible to both local and foreign investors.

Rich geological potential

Zambia is endowed with extensive mineral resources, with copper as the primary export earner. Other significant reserves include cobalt, gold, emeralds, and other gemstones, alongside industrial minerals. Comprehensive geological data and surveys, accessible through government and private institutions, reduce exploration risk and attract investment.

Political stability

Zambia enjoys a reputation for political stability, peaceful transitions of power, and adherence to the rule of law. Investor protection is further bolstered by robust dispute resolution mechanisms, including arbitration.

Access to regional and international markets

Zambia’s membership in the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) provides access to significant regional markets. Furthermore, favourable trade agreements facilitate the export of minerals to international markets, enhancing the profitability of mining projects.

Foreign exchange controls

No foreign exchange controls and dividends may be repatriated without the need for onerous regulatory consents.

Zambia generally imposes minimal restrictions on foreign investment in mining. However, specific limitations exist under the Minerals Act, particularly regarding certain mining rights and operations.

Size-Based Restrictions on Mining Rights

Mining rights over areas between two cadastre units (6.68 hectares) and 120 cadastre units (400.8 hectares) are reserved for:

• citizen-influenced companies: 5% to 25% equity owned by Zambian citizens;
• citizen-empowered companies: 25% to 50% equity owned by Zambian citizens; and
• citizen-owned companies: at least 75.1% equity owned by Zambian citizens.

Artisanal Mining

Only citizens or co-operatives wholly composed of Zambian citizens are permitted to undertake artisanal mining operations.

Small-Scale Mining

Small-scale mining is restricted to citizen-owned, citizen-influenced, or citizen-empowered companies.

Zambia is a signatory to various bilateral and multilateral treaties that promote and protect investments.

Bilateral Investment Treaties (BITs)

BITs are regulated by the Trade and Business Development Act. Zambia has entered into BITs with several countries to protect and encourage foreign investments. These treaties aim to create favourable conditions for investors by providing guarantees and protections against risks such as expropriation, unfair treatment, and restrictions on the transfer of profits.

Zambia has signed BITs with the UAE, Türkiye, Morocco, Mauritius, the UK, Finland, Italy, the Netherlands, France, Belgium, Ghana, Egypt, Cuba, China, Switzerland and Germany.

Of the 16 BITs, only those with the UAE, Mauritius, France, Germany, Switzerland, China, Türkiye, the Netherlands and Italy are currently in effect.

Multilateral Treaties

The African Growth and Opportunity Act (AGOA)

While the AGOA primarily focuses on enhancing trade between eligible African countries and the USA, it includes provisions that protect and promote foreign investments. These protections indirectly encourage US investments in Zambia’s mining sector.

SADC

As a member of the SADC, Zambia adheres to protocols on trade and investment, including the SADC Protocol on Finance and Investment. This Protocol aims to promote sustainable investment flows and ensure that investors are treated equitably, including for mining ventures and large-scale exploration projects.

COMESA

COMESA fosters regional economic integration and provides a framework for investment protection similar to that of SADC.

The COMESA Common Investment Area Agreement includes provisions that protect cross-border investments in member states, encouraging international mining companies to operate in Zambia.

The mining industry in Zambia relies on diverse financing mechanisms to support exploration, development, and operational activities. These include the following.

Equity Financing

Private equity funds play a significant role in financing mining projects, especially in their early stages.

Loans

Public and private loans include loans from commercial banks, development banks, or international financial institutions. However, it must be noted that in terms of the Banking and Financial Services Act No 7 of 2017, banks or financial institutions cannot, directly or indirectly (except as the Bank of Zambia may prescribe) grant a credit facility or guarantee a debt of a person or common enterprise so that the total value of the credit facility and guarantee, in respect of a person or common enterprise, is more than 25% of the regulatory capital of the bank or financial institution.

Shareholders may provide loans to mining companies, especially in closely held entities, to finance specific projects or operations.

Asset Financing

Mining companies leverage asset-backed financing to purchase expensive machinery and equipment. Lenders provide financing based on the collateral value of these assets, which are essential for operations.

Offtake Agreements

These are pre-arranged contracts in which a buyer agrees to purchase a portion of the mine’s production in advance. Offtake agreements often come with upfront payments or financing to support project development. In Zambia, offtake agreements are particularly common for copper and cobalt, with major buyers securing long-term supply contracts to mitigate market risks.

The domestic securities market in Zambia, led by the Lusaka Securities Exchange (the “LuSE”), provides a regulated platform for raising capital. Despite its potential, the role of the LuSE in financing mining projects is minimal. This is primarily due to the low number of Zambian mining companies listed on the LuSE. Currently, the only mining-related entity listed is ZCCM-IH, which serves as the government’s investment arm in the mining sector. The limited participation of mining companies on the LuSE restricts the domestic market’s contribution to mining finance. It can be said that, currently, the domestic securities markets play little to no role in mining finance.

Similarly, the international securities markets play a minimal role in financing exploration, development, and mining activities in Zambia. Although mechanisms like depository receipts have been utilised to access foreign capital, their application is very rare. Depository receipts, which represent shares in a foreign company and are traded on international stock exchanges, can provide Zambian companies with a pathway to tap into global markets. However, their issuance typically involves significant compliance costs, regulatory hurdles, and the need for a robust corporate structure, making them an uncommon choice for most mining enterprises in Zambia.

Creation of Security Interests

Mining tenements

Security interests can be created over mining tenements under Section 46 of the Minerals Act. A mining right holder may encumber their tenement, provided they obtain prior consent from the Commission. In practice, this takes the form of a lender to the licence holder taking a charge over the mining right or taking a charge over the shares of the licence holder. Where the licence holder is also the legal owner of the land over which the mining right exists, the licence holder may also create a mortgage over the land on which the mining right subsists.

On enforcement of the security created over the mining right or the licence holder, the lender can, among other powers of enforcement, take possession of the mining rights and resulting products, including residue deposits and mineral products.

Related assets

Security interests can also be created over movable property under the Movable Property (Security Interest) Act No 3 of 2016 (the “MPSI Act”). The MPSI Act allows the creation of security interests in movable tangible and intangible assets (such as machinery, equipment, exploration data or receivables) to secure the payment of a debt or the performance of an obligation. To establish a security interest:

• the secured creditor and debtor (eg, a mining company) must execute a security agreement detailing the terms of the security interest, the collateral, and the obligations secured; and
• the security interest is perfected by registering a financing statement in the collateral registry maintained under the MPSI Act.

Priority of security interests

A perfected security interest takes precedence over an unperfected one. Where two or more security interests are perfected, priority is determined by the chronological order of their creation and perfection.

Licence holders can also create fixed and floating charges over their mining assets. These charges must be registered.

Enforcement of security interests

In the event of debtor default, secured creditors have several enforcement rights, including:

• repossession or disposal: creditors may seize or sell the encumbered mining tenements and related assets to recover their debts; and
• the disputes arising from enforcement actions are resolved through legal processes in line with Zambian law.

The mining sector in Zambia is poised for significant growth over the next two years, both in terms of exploration and mineral production.

Zambia is expected to enact new mining legislation that transfers regulatory authority from the Ministry of Mines to a separate entity. Under this framework, the Ministry will no longer issue or regulate mining licences.

On the exploration front, activity is expected to surge, particularly in the western, northern, and north-western provinces, which remain largely underexplored. Advancements in technology, especially the integration of AI into exploration processes, have sparked renewed interest in these previously untapped regions. The focus will extend beyond traditional minerals like copper to include critical resources such as manganese, lithium, and cobalt, driven by rising global demand for these materials to support the green energy transition.

In terms of production, Zambia is set to increase its copper output from approximately 800,000 metric tonnes to over one million metric tonnes. This growth is attributed to the revitalisation of key mining assets such as Mopani Copper Mines, Kansanshi Copper Mines, and Luanshya 28 Mine, which were previously dormant but are now gearing up for operations. Additionally, major players such as First Quantum Minerals (FQM) and Barrick Lumwana have made substantial investments to expand their copper production capacity.