HH on mining sector reform “I am not allowing this process to happen until we have consensus”

President Hakainde Hichilema has reassured investors that his government will not embark on a controversial reform of Zambia’s mining sector until it has reached a consensus with the country’s mining companies.

In August, the government had announced plans to establish a state-owned firm to control at least 30% of future mines’ production of critical minerals, including copper. The draft legislation would also grant the government advanced mining rights to an area before an exploration licence was granted.  

Speaking at the inaugural Zambia Mining and Investment Insaka in Lusaka on Wednesday, President Hichilema said he realised that the policy had spooked investors and he therefore called a meeting of Zambia’s Chamber of Mines, which represents major mining houses, to reassure them that the legislation would not go ahead without their cooperation.

“Invite everybody, even those mine houses that are not represented in the chamber. I said bring them to the table,” Hichilema told delegates at Lusaka’s Mulungushi Conference Centre.

“And I said to the Mines Minister [Paul Kabuswe], to the PS [Permanent Secretary], I am not moving here. I am not allowing this process to happen until we achieve consensus.”

President Hakainde Hichilema: "the government doesn't work in isolation; it must work with investors, its own investors in its own mines".

The comments come following a meeting between the Ministry of Mines and representatives from the Chamber of Mines last month. In a joint statement the chamber and government said they had “developed a roadmap for the resolution of the matter within the shortest period of time.”

President Hichilema’s comments at Zambia’s first ever Mining Insaka reiterate his support for public-private sector cooperation. In his speech he added, “the government doesn’t work in isolation; it must work with investors, its own investors in its own mines. These are our mines you run, Zambian mines. We want them to succeed commercially. Not many countries would do what we did. I think that’s where the value lies.”

The Insaka, which means ‘a place to gather’ in Zambia’s Bemba language, was held to coincide with the 100th anniversary of the first formal mining activity in Zambia.

Writing on Facebook, President Hichilema explained that the event was “a crucial dialogue aimed at shaping the future of the mining sector. It provides a platform or sharing experiences and fostering conversations as equal partners on how to maximize the industry's potential for the benefit of all stakeholders, especially the Zambian people.”

The inaugural Zambia Mining and Investment Insaka coincided with the 100th anniversary of the first formal mining activity in Zambia.