State Participation
State participation in Zambia’s mining sector is governed by the Mines and Minerals Development Act of 2015. Under Section 3, all rights related to the ownership, exploration, and disposal of minerals are vested in the President on behalf of the Republic. Section 17 of the Act allows the Government to acquire mining rights for state investment in designated areas, which are reserved exclusively for government projects and cannot be allocated to private entities. These mining rights are granted to a government investment company in accordance with the Act.
Zambia’s mining industry has undergone significant structural changes. Initially privately owned under colonial rule, the sector was nationalised in the 1970s through the creation of Zambia Consolidated Copper Mines (ZCCM). However, declining copper prices and insufficient investment led to reprivatisation in the late 1990s. While the mines are now operated by private companies, the Government retains minority stakes in major copper projects through Zambia Consolidated Copper Mines Investment Holdings Plc (ZCCM-IH).
ZCCM-IH is majority-owned by the Government of Zambia through the Industrial Development Corporation Ltd (IDC) (60.3%), with additional shares held by the Government of the Republic of Zambia (17.3%), the National Pension Scheme Authority (NAPSA) (15%), and private investors (7.4%). Minority shareholders, numbering over 4,000, are based across Europe, Africa, the Caribbean, Australia, Asia, and the USA.
Listed on the Lusaka, London, and Euronext Stock Exchanges, ZCCM-IH publishes annual audited financial reports, providing details on reserves, operating companies, royalties, and dividends. It also discloses information on its board of directors and governance processes. The company has strong links with the Ministry of Mines and Minerals Development and the Ministry of Finance, both of which hold board representation, alongside officials from the Zambia Revenue Authority and the Bank of Zambia.
As a diversified mining investment and operations company, ZCCM-IH has interests in copper, gold, amethyst, manganese, limestone, coal, and energy. On 29 September 2023, at its 19th Annual General Meeting, shareholders approved combined dividends of K724 million for the 2021 and 2022 financial years. The Government received K562 million through the Industrial Development Corporation (K437 million) and the Ministry of Finance and National Planning (K125 million).
