Introduction to the Podcast
Chris Stevens – 3:40
Hi, my name is Chris Stevens. I’m the head of the Mining Law Department at Werksmans, a South African-based law firm. We do a lot of work in the mining industry for both local and foreign clients, particularly across Sub-Saharan Africa.
However, today, I’m speaking in my capacity as the head of the Mining Practice Group of LEX Africa.
For those unfamiliar with LEX Africa, it is an alliance of leading law firms in major African jurisdictions, particularly those with significant mining activity. One of the things we do is publish an updated Mining Guide every two years, providing insights into key legal and policy developments across African countries.
This podcast series focuses on five key mining jurisdictions:
- Mali
- Mozambique
- Tanzania
- Zambia
- Zimbabwe
Today, we’re honoured to have Charles Mkokweza, a well-known mining lawyer in Zambia, to discuss recent legal trends and developments in the sector.
Charles, over to you. Please introduce yourself and give us an overview of recent trends in Zambian mining law.
Zambia’s Mining Landscape
Charles Mkokweza – 8:35
Thanks, Chris. You’ve set a great foundation for this discussion.
I’m Charles Mkokweza, Senior Partner at Coplesteigo Practitioners. I head our Mining and Energy team, working closely with investors in Zambia’s mining sector.
Historical Context
- Zambia has been a mining country for over a century, with large-scale mining dating back to the late 1800s.
- The country has undergone various policy shifts—from state ownership post-independence to privatisation in the 1990s, which attracted major international players.
- Between 2014 and 2018, regulatory and tax policies negatively impacted investment.
- Since 2018, and especially after the 2021 government change, policy shifts have made Zambia more attractive to investors again.
Zambia now expects $3 billion–$10 billion in mining investments over the next 5 to 10 years, with significant merger and acquisition activity.
Key Trends in Zambian Mining Regulation
1. New Dual Regulatory Framework
- Currently, mining and exploration are governed by a single law: the Mines and Minerals Development Act.
- New Proposal:Separate exploration and mining regulations.
- Exploration & Artisanal Mining: Geological and Minerals Development Bill
- Mining Operations: Minerals Regulation Commission Act
2. Establishment of the Minerals Regulation Commission
- An independent, quasi-governmental mining regulatory authority.
- Replaces direct government oversight within the Ministry of Mines.
- Expected to improve efficiency and governance.
3. Government Participation in Mining Licenses
- The proposed state participation model raised industry concerns.
- The government clarified that its interest in mining projects will not be free-carried.
- The government may contribute assets (e.g., licenses) as equity in projects.
4.Faster Transfer of Mining Licenses
- Currently: License transfers require ministerial approval, often causing delays.
- New Proposal: Approvals to be handled by the new Commission with a 30-day approval deadline.
5. State Involvement in Mineral Marketing
- Government plans to participate in trading and marketing of minerals.
- Details on how this will be structured are still emerging.
Resource Nationalism & Local Content
Chris Stevens – 26:44
Charles, in South Africa, we’re seeing strong efforts to promote beneficiation—ensuring that raw materials are processed locally rather than exported. Is Zambia taking a similar approach?
Charles Mkokweza – 27:33
Yes, Zambia has introduced several policies to enhance local participation in mining benefits:
1. Local Content Regulations
- Mining companies must submit 5-year plans outlining:
- Procurement from local suppliers
- Local employment & training
- Skills transfer & community development
- A new oversight body within the Ministry of Mines will enforce compliance.
2.Export Levy on Unprocessed Minerals
- 10% export levy on unprocessed minerals introduced in 2018, suspended during COVID, and reinstated in 2023.
- The goal is to incentivise local processing capacity.
3. Tax Incentives for Mineral Processing
- Companies that invest in local refining and processing facilities receive preferential tax treatment.
Final Thoughts & Mining Indaba
Chris Stevens – 33:25
That’s fascinating, Charles. Many mining jurisdictions worldwide face the same policy challenges, and it’s interesting to see Zambia’s approach.
Also, as we wrap up, we’re doing these podcasts in the lead-up to the Mining Indaba in Cape Town (Feb 2–6, 2025).
Our updated LEX Africa Mining Guide is now available, providing a comparative analysis of mining policies across African jurisdictions.
Charles, any final comments?
Charles Mkokweza – 35:58
Thanks, Chris. It’s been great discussing Zambia’s mining landscape. I’ll be at Mining Indaba 2025 and look forward to connecting with anyone interested in Zambia’s mining opportunities.
Chris Stevens – 36:33
Thanks, Charles. This concludes our podcast.
