President-Elect HH Could Unlock $2bn Mining Investment

Hakainde Hichilema could unlock $2 billion worth of mining investment into the country if the industry can reach an agreement on royalties with the President-elect.

The Zambia Chamber of Mines have stated that some copper companies are due to spend “hundreds of millions of dollars” in capital which they had held back since 2019 due to tax changes which deterred investment. Companies including First Quantum Minerals Ltd. And EMR Capital are also ready to raise funding for mining projects within the country.

Speaking in response to email questions on Thursday, the Chamber of Mines President Godwin Beene said that Mr Hichilema’s win in the August 2021 general election has spurred great confidence into the sector.

“The president-elect has reset the tone to one of rebuilding confidence and spurring growth,” he said.

Mr Beene added that “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.”

Speaking on the matter, the president-elect said that he wanted a mutually-beneficial relationship with mining companies.

“You’ll see that the mines will come to the table, you’ll see that the mines will pay their fair taxes. The mines should grow for them to pay their fair tax. This asset must work for the investor, it must work for Zambians,” Mr Hichilema said.

Newly found confidence in the sector follows a period of hostility between the industry and  outgoing President Edgar Lungu’s government. Subsequently, although the country saw copper prices rising over the last year, output of the metal had largely stagnated.