ZAMBIA Law and Practice Contributed by: Harriet Mdala, Natasha Lungu, Samuel Muleya and Chanda Musonda-Chiluba, MAY and Company
Enforcement of security interests In the event of debtor default, secured creditors have several enforcement rights, including the following. • Repossession or disposal: creditors may seize or sell the encumbered mining tene - ments and related assets to recover their debts. • The disputes arising from enforcement actions are resolved through legal processes in line with Zambian law. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector The mining sector in Zambia is poised for sig - nificant growth over the next two years, both in terms of exploration and mineral production. From a legislative perspective, it is anticipated that Zambia will have a new Act that regulates the mining sector. The new law is likely to place responsibility for the regulation of minerals in a separate entity. As a result, the Ministry of Mines will not be responsible for issuing and regulating mining licences issued under the new Act. On the exploration front, activity is expected to surge, particularly in the western, northern, and north-western provinces, which remain largely underexplored. Advancements in technology, especially the integration of AI into exploration processes, have sparked renewed interest in these previously untapped regions. The focus will extend beyond traditional minerals like cop - per to include critical resources such as manga - nese, lithium, and cobalt, driven by rising global demand for these materials to support the green energy transition.
holder may also create a mortgage over the land on which the mining right subsists. On enforcement of the security created over the mining right or the licence holder, the lender can, among other powers of enforcement, take possession of the mining rights and resulting products, including residue deposits and min - Security interests can also be created over mov - able property under the Movable Property (Secu - rity Interest) Act No 3 of 2016 (the “MPSI Act”). The MPSI Act allows for the creation of secu - rity interests in tangible and intangible movable assets, such as machinery, equipment, explora - tion data, or receivables, to secure the payment of a debt or the performance of an obligation. To establish a security interest: • the secured creditor and debtor (eg, a mining company) must execute a security agreement detailing the terms of the security interest, the collateral, and the obligations secured; and • the security interest is perfected by register - ing a financing statement in the collateral registry maintained under the MPSI Act. Priority of security interests eral products. Related assets A perfected security interest takes precedence over an unperfected one. Where two or more security interests are perfected, priority is deter - mined by the chronological order of their crea - tion and perfection. Licence holders can also create fixed and float - ing charges over their mining assets. These charges must be registered.
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