Zambia, Africa’s second-biggest producer of copper is planning to develop dozens of mining licenses together with investors with an aim to more than quadruple production of the mineral in the country by early next decade.
According to Jito Kayumba, President Hakainde Hichilema’s special assistant for finance and investment, over 40 permits reserved by the country’s Mines Ministry will be transferred to a state company, which will then negotiate agreements with partners.
In this, the Zambian government firm will hold significant minority but non-operational stakes in the ventures.
“The appetite is illustrated in the numerous unsolicited offers we receive,” Kayumba told Bloomberg via a phone interview.
Subsidiaries of First Quantum Minerals Ltd. and Barrick Gold Corp. produced about two-thirds of the country’s output last year, and both companies are working to boost production in the coming years. Other key operators include units of Abu Dhabi’s International Resources Holding, Vedanta Resources Ltd., and China Nonferrous Mining Corp.
Kayumba says Zambia’s state-owned mining company, which will fall under the Zambia Industrial Development Corp., will contribute mining licenses and data from a government-funded aerial geophysical survey.
The country is also encouraging investors interested in minority stakes, such as Saudi Arabia’s Manara Minerals Investment Co., to partner with an operating company and the state to develop new greenfield projects, Kayumba added.
