Zambia’s state investment company, ZCCM Investments Holdings (ZCCM-IH,) is seeking to increase its ownership in several mining ventures as the country positions itself to capture greater value from surging global demand for critical minerals.
The move reflects a broader trend among African resource-rich nations aiming to secure a larger share of profits from commodities essential to the global energy transition, particularly copper, which is crucial for electric vehicles, renewable energy infrastructure, and power grids.
ZCCM-IH currently holds minority stakes — in some cases as low as 10% — in mines operated by foreign companies including First Quantum Minerals, China Nonferrous Metal Mining Group, and Vedanta Resources.
Chief Executive Officer Kakenenwa Muyangwa said the company intends to deepen its participation in existing operations while avoiding aggressive state intervention.
“There is clear intent for us to have substantial stakes in our existing mining assets,” Muyangwa told Reuters. He added that “there is a gradual move to higher ownership,” arguing that a “significant minority gives you more say and leverage” than a very small holding.
The company stressed that any increases would occur strictly on commercial terms. Muyangwa said stake acquisitions would happen “not through forced sales,” underscoring Zambia’s efforts to balance resource nationalism with maintaining investor confidence.
In recent years, ZCCM-IH has already expanded some of its holdings. The company increased its share in Lubambe Copper Mines to 30% from 20% after EMR Capital exited the project and transferred majority ownership to JCHX Mining in 2024. ZCCM-IH also raised its stake in Mingomba Mining from 20% to 25%.
Analysts say Zambia’s approach differs from the wave of nationalizations seen in Africa during the 1970s. Instead of outright state seizures, the current strategy focuses on commercially negotiated equity increases and new revenue-sharing structures.
Discovery Alert described the shift as “commercially structured equity accumulation” designed to preserve foreign investment while giving governments greater influence over strategic assets.
The publication noted that small minority stakes often leave governments with limited “voting weight,” restricted access to operational data, and little influence over major corporate decisions.
Zambia, Africa’s second-largest copper producer, aims to increase annual copper output to 3 million metric tons by 2031, nearly tripling current levels. The government sees copper as central to future economic growth as worldwide demand for clean-energy minerals accelerates.
ZCCM-IH is also exploring new financing mechanisms to support its expansion plans. The company wants to extend a royalty-to-revenue model first introduced at Kansanshi Mining, allowing it to earn revenue-linked returns in addition to dividends.
To finance future acquisitions and projects, the state investment firm is considering appointing financial advisers to help raise capital.
