ZCCM Investments Holdings (ZCCM-IH), Zambia’s state investment company, is planning to increase its minority stakes in several mining ventures on commercial terms, reported Reuters.
The company’s CEO, Kakenenwa Muyangwa, indicated that this strategy is part of a broader move by African nations to secure a larger share of revenue from the region’s mineral resources as global demand for critical minerals rises.
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ZCCM-IH currently holds minority stakes as low as 10% in mines operated by the likes of First Quantum Minerals of Canada, China Nonferrous Metal Mining Group and India’s Vedanta Resources.
Last year, ZCCM-IH increased its stake in Lubambe Copper Mines to 30% from 20% following EMR Capital’s exit in 2024, with the latter transferring its majority shareholding to JCHX Mining of China.
The company is also raising its stake in KoBold Metals’ Mingomba Mining from 20% to 25%.
Muyangwa told Reuters: “There is clear intent for us to have substantial stakes in our existing mining assets.
“There is a gradual move to higher ownership, where we believe being a significant minority gives you more say and leverage in the activities than if you have a very small minority stake.”
The company has no plans to acquire operating mines where it currently holds no shares, focusing on assets under development.
Muyangwa stated that where ZCCM-IH already owns a mining licence, it is seeking an element of free carry, typically ranging from 5% to 15%.
Zambia, the second-largest copper producer in Africa, aims to boost its production to three million tonnes (mt) by 2031 to meet rising demand for copper in electric vehicles and clean energy solutions.
To support its expansion plans, the company plans to extend its royalty-to-revenue model, initially implemented with First Quantum Minerals at Kansanshi Mining, to other assets.
The company is considering appointing a financial adviser to assist with capital raising for these projects.
