Hichilema: We Can Achieve Ambitious Copper Production Targets

In a speech read for him by the Mines and Minerals Development Minister, Paul Kabuswe, president Hichilema reaffirmed his commitment to achieving the “ambitious yet attainable” goals for Zambia’s mining sector.

Speaking at the 10th Zambia International Mining, Energy Conference and Exhibition (ZIMEC) Kabuswe continued to convey Hichilema’s message. “I wish to implore all of you and emphasise our steadfast commitment to meeting the ambitious yet achievable goal of raising annual copper production levels from the current 830 metric tonnes to 3,000,000 metric tonnes in the next decade.”

The government aims to do this primarily by encouraging investment in the industry. To this end, the mineral royalty rate regime has been restructured in order to smooth the impact of price fluctuations, and therefore the risk of investment. Property transfer tax has also been reduced by 25% in order to boost exploration efforts.

Seeking to reassure foreign investors, Hichilema continued: “Let me categorically state that investors in Zambia are assured of the rule of law guaranteeing security of tenure and investments. To this effect for example, good governance in the administration of mineral rights is being strengthened. A moratorium on the issuance of mining rights was affected while a systems audit was undertaken. We will soon launch the online payment portal that will enhance efficiency and integrity in the administration of the mining rights.”

This emphasis on investment guarantees comes as the administration works to distance itself from the previous government. Former president Lungu seized Konkola Copper Mine from Vedanta Resources after they halted production in the country following a tax hike. However, the investment climate in Zambia has since changed since the 2021 election. Hichilema has expressed his regret at the seizure, and the international outlook has improved. For example, the Absa Financial Markets Index 2022 upgraded Zambia’s score because of an improvement in macroeconomic outlook and strong relative performance on legal enforceability.

Hichilema also emphasised the Memorandum of Understanding recently signed with the Democratic Republic of Congo in order to develop electric batteries and clean energy value chains. President Hichilema also announced the opening of the Luongo Musamu Manganese mine in Mutipula chiefdom. The Zambian-owned investment is already employing hundreds of local citizens in the area.

President of the Chamber of Mines, Godwin Beene, praised the three-day conference for attracting over 300 delegates with an interest in investing in the country.