ZAMBIA Trends and Developments Contributed by: Harriet Mdala, Maloba Nalomba, Chilufya Sinkala and Hlezipe Halwiindi, MAY and Company
Introduction Zambia’s mining industry is currently undergoing significant transformation which is intended to increase investment in the sector and encour - age more sustainable practices. The key trends in the sector are as follows. Enhanced Geological Surveys The Ministry of Finance allocated ZMW198 mil - lion for a nationwide geological survey, initially covering southern, north-western, western, and central provinces. The survey aims to enhance Zambia’s understanding of its mineral resources and will be expanded to the entire country within two years. We understand that the survey’s initial focus is on the western and north-western provinces, with plans to expand to other areas afterwards. By 31 December 2024, surveys in the Chavuma, Zambezi, Lukulu, and Kalabo districts had been completed, covering 8% of the total surface area of the country expected to be surveyed. Additionally, the geophysical airborne survey is currently taking place along the southern border of Zambia, covering areas such as Mongu, Sen - anga, and Sesheke, including parts of Kazun - gula and Livingstone. The survey is also being conducted around the Luangwa/Zambezi River confluence, focusing on the Luangwa, Siavonga, and Chirundu districts, to assess the subsurface geological structures in these regions. The enhanced geological surveys are necessary for identifying mineral resources for future min - ing activities and ensuring that resources are extracted in an efficient and sustainable way. This data will be key for potential investors as it will inform their decisions on whether or not a site is suitable for development into a large-scale mining project.
Anticipated Legislative Changes In terms of legal developments, the government is in the process of enacting new legislation in the mining sector. This consists of the Geologi - cal Minerals Development Act of 2024, the Min - erals Regulation Commission Act No 14 of 2024 and a statutory instrument on local content, the Mines and Minerals Development (Local Con - tent) Regulations 2020. The key change in the proposed Minerals Reg - ulation Commission Act is the establishment of the Minerals Regulation Commission. This change is aimed at passing the regulatory func - tion in the mining sector to the Commission and responsibility for handling policy-related matters to the Ministry of Mines. The proposed Geological Minerals Development Act among others, seeks to provide for geologi - cal surveys, mapping and exploration activities and establish an artisanal and small-scale min - ing fund. The Mines and Minerals Development (Local Content) Regulations seek to enhance the par - ticipation of Zambians across the mining value chain. A recent public address by the Minister of Mines suggests that the Minerals Regulation Commis - sion Act is expected to enhance regulatory over - sight in the mining sector. The implementation process is underway and the Commission is expected to be fully functional by the end of the first quarter of 2025. Additionally, the Geological and Minerals Devel - opment Act is currently at the first reading stage in Parliament. With regard to the draft Mines and Minerals Development (Local Content) Regula - tions, we understand that stakeholder consulta -
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