A strategy to future-proof Zambia’s mining industry

Zambia is positioned to benefit from the global demand for copper and cobalt driven by the energy transition, but faces challenges from a history of unstable mining taxes and poor relations with investors. The briefing recommends adopting a profit-based Mineral Royalty Tax (MRT) to encourage capital investment and exploration, particularly as ore grades decline and underground mining costs rise. It also calls for clarifying the role of Zambian Consolidated Copper Mines Investment Holdings (ZCCM-IH) and resolving disputes with companies like Vedanta Resources to restore investor confidence.

• Zambia is well-positioned to meet the rising global demand for copper and cobalt, which are critical for green technologies such as solar panels, wind turbines, and electric vehicles, though the country faces declining copper ore grades.
• The Zambian government is advised to implement a profit-based Mineral Royalty Tax (MRT) framework to encourage investment in infrastructure and exploration, as this model is more favorable for new and end-of-life mining operations.
• Historical instability in the mining tax regime has deterred investment, with the Mineral Royalty Tax changing 10 times over the last 16 years, often in response to copper price fluctuations.
• To restore investor confidence, the government must resolve conflicts with private entities, such as the international arbitration with Vedanta Resources following the 2019 seizure of Konkola Copper Mines, and clarify the operational role of ZCCM-IH.
• Zambia's economy shows a high dependency on copper, with exports accounting for nearly 70% of total imports in 2019, and GDP per capita correlates closely with copper prices.
• The risk of mining companies exploiting a profit-based MRT through false claims of capital investment can be mitigated by implementing the reporting standards of the Extractive Industries Transparency Initiative (EITI).

APA

Obisie-Orlu, V. (2022). A strategy to future-proof Zambia’s mining industry. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2022/11/Zambia-Policy-Briefing.pdf

Chicago

Obisie-Orlu, Vincent. A strategy to future-proof Zambia’s mining industry. Good Governance Africa, 2022. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2022/11/Zambia-Policy-Briefing.pdf.

Wikipedia

{{cite report |last1=Obisie-Orlu |first1=Vincent |title=A strategy to future-proof Zambia’s mining industry |publisher=Good Governance Africa |date=November 2022 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2022/11/Zambia-Policy-Briefing.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{obisieorlu2022strategy, author = {Obisie-Orlu, Vincent}, title = {{A strategy to future-proof Zambia’s mining industry}}, institution = {Good Governance Africa}, year = {2022}, month = nov, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2022/11/Zambia-Policy-Briefing.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }