Anglo American Announces Multi-Million Dollar Deal In Zambia

In the next step of the New Dawn government’s promise to ensure the economic prosperity of Zambia, Angola American has announced that it will take majority control of its Zambia copper-cobalt exploration licence.

The announcement reflects a huge opportunity for Zambian private investment as it will be the first new investment by Anglo in Zambia in 20 years.

The deal shows that Anglo will receive a 70% joint venture with Arc that will own licences to investigate Zambia’s copper-rich North-Western province.

Furthermore, the deal reflects a financial win for the Zambian government as Anglo American will pay $3.5 million into the joint venture after signing. It will then retain its stake by spending $74 million within seven years and making cash payments of $11 million into JV.

The multi-million dollar investments will no doubt have positive multiplier effects on the Zambian economy, furthering employment opportunities for locals, increasing incomes and overall attributing to the economic development of Zambia.

The news of investment has come after President Hakainde Hichilema outlined his plans to encourage private sector investment in the country, in order to increase employment opportunities and place Zambia as one of the top mining destinations in Africa.

The use of positive business policies, such as the mining tax reform, are just some of the ways in which the president has made Zambia more appealing to foreign investors.

Photo: REUTERS/Rodrigo Garrido