The study was conducted to identify workable reform options and suggestions essential to Zambia’s aspirations
of ramping up copper production to 3 million metric tonnes in a decade. The study used qualitative research
approaches through expert interviews involving eleven (11) stakeholders that included representatives from the
Government ministries, academic institutions, policy think tanks, mining associations, and mining business
establishments.
Study findings revealed that mining in Zambia has a high tax rate compared to other countries, which is likely
to affect the much-needed investment necessary to increasing copper production to 3 million metric tonnes of
copper in a decade.
The study identified many significant obstacles to the mining industry’s expansion that could have a detrimental
impact on the realization of the 3 million metric tonnes of copper in the next ten years. These rigidities include
unstable tax regimes, low ore grade for the majority of the current mines, which makes production expensive,
especially for the Copperbelt-based mines, use of outdated technology, electricity supply limitations (mining
expansion is largely constrained by how much electricity ZESCO can produce), regulatory difficulties and resource
nationalism.
In terms of supportive sectors, the copper sector is intricately tied to other industries both primary and
secondary level. The primary industries that will be crucial in supporting the mining sector include forestry,
electricity, petroleum, transport and logistics as well as financial services (suppliers of goods and services to
the mines require financing for them to step up). Secondary sectors key in supporting the copper mining sector
include educational institutions and other utilities (through training of geologists, mining engineers, technicians,
artisans, business administrators and other expertise required in the in the mining industry).
For the actualization of the 3 million metric tonnes, the report offers crucial policy recommendations. According
to the study findings there are a number of reforms key for the successful actualization of the 3 million tonnes of
copper in a decade based on best practices such as a stable and predictable mining tax regime, independent legal
framework for Artisanal and small-scale miners, debt restructuring, 3 million metric tonnes copper production
master plan and revision of the legal framework for public private partnership. The research also suggests
important measures that will benefit the industry, such as granting permits to all major mining companies,
expediting VAT refunds and creation of a strategic plan that provides a clear direction on geological mapping and
mineral resources management.