Zambia: The Return of Anglo-American & Revival of the Mining Sector

The news that Anglo American has returned to mining activity in Zambia has drawn the attention of global operators and investors. The move came in the form of a joint venture with the junior exploration company Arc Minerals for participation in copper operations in the North-Western Province. The venture may be considered relatively tentative at this stage but it has helped bolster the perception that the mining environment has improved substantially under the Hichilema government.

To what extent has mining in Zambia indeed improved and become more attractive to private mining interests?

There has certainly been much activity and changes driven by the New Mineral Resources Policy 2022-2027. A new independent mining commission is being established to close regulatory gaps, mining royalty taxes are now deemed deductible, greater transparency in licensing and reduction of speculative license-holding is being achieved, the Public-Private Partnership framework is being re-examined and the Mining Act is under review (although the timeline on this is uncertain.)

The global copper price is historically volatile but the demand is likely to increase markedly as a green commodity required inter alia for power generation. The Zambian government is keen to capitalise on this and has expressed its intent to increase production from the current 850 00 metric tons per annum to three million by 2032.

Many may not be aware that much of this major mining country has not been explored or has been insufficiently explored! I visited the then so-called ‘New Copperbelt’ in the North-Western Province on a number of occasions as it opened up from around 2002 and had to ask myself why it had taken so long to uncover this new national treasure? Today this area is a hive of activity with First Quantum as the major player.

New Copperbelt in the North-Western Province

Now the government wants to diversify its mining sector and reduce dependence upon copper and cobalt. Alternatives such as gold and manganese are referred to and the recent lithium discoveries have created some excitement.

Great opportunities for more geological mapping and development of new mining resources!

Like almost everywhere in the continent, the government wants to maximise localisation. It is attempting to formalise local cooperatives and is encouraging partnerships between local Zambian companies and foreign operators. Despite lack of local access to capital, the intention is to ensure participation by Zambian suppliers in the mining supply chain.

Partnerships with local appropriately identified companies could ease access for foreign companies to Zambian mining opportunities!

Much still has to be done to render Zambian mining highly attractive, but the recent developments certainly make it worthy of a good look!

Africa Deployments Case Study – Zambia Employer of Record (EOR)

ADS is currently supporting clients operating in Zambia with Employer of Record solutions.  We are working with multiple clients within the NGO, Mining, FMCG , Engineering sectors.

We are sharing a recent case study with a client of ours whom is very well known globally not only within the NGO sector but with their seal of approval on your everyday consumable products.  This Client is doing amazing work Globally and has made such an amazing social contribution for people who are supplying large international organizations with the products we use in our everyday lives.  We are extremely grateful to be working with them and look forward to continue working with them for many years to come.

Our client approached us recently to employ an expatriate national who was moving to Zambia to be with their family.  Although our client did not physically have a presence in Zambia or a project in Zambia, it was against the organizations policy to employ someone in another jurisdiction and not contribute to the local tax ecosystem.  They requested if it was possible for Africa Deployments to employ the expatriate in Zambia and effectively making them a “Remote Team Worker” within the organization.

For those who know Zambia and the stringent regulations around obtaining a work permit for an expat will understand that it would be almost impossible to get a work permit for them.

Through our Zambia Employer of Record service and a few backwards and forwards discussions with the Zambian Immigration authorities, we were able to outline the benefit to having the individual in-country and contributing towards the social good of the Zambian people.  We were able to obtain a work permit within six weeks for the individual and they were reunited with their family just in time for Christmas.

At ADS we believe in keeping the human touch and going beyond our service to assist our clients and their people, one story at a time.

If you have been struggling in Zambia or would like to explore cost effective ways of entering into Zambia then you might want to consider using a Zambia Employer of Record.

Africa Deployments is an Africa Employer of Record solutions provider, providing employer of record in over 46 African Countries.  We will employ your local and expatriate employees ensuring that they are compliant in country.  This solution may be for you if you do not have a registered entity and want to explore entering into the market at a fraction of the cost to setup the entity.

ADS can obtain local and international medical insurances for your employees in Africa.  Additional insurances, such as disability or life can be obtained at the request of the client.

ADS is your trusted partner in Africa and in addition to Africa Employer of Record services we offer the following solutions:

At Africa Deployments Employer of Record, we are passionate about providing personalized service to you, our clients and your employees using innovative technologies for Africa Employer of Record, HR, and Payroll solutions across the African regions. 

We focus ourselves on being service-orientated with the speed of response, attentiveness and always going above and beyond. 

We are passionate about helping people every day through our innate expertise, knowledgeability, and know-how of the African regions, making it seamless for our clients.

Speak to us today and find out how we can assist you!

*The views expressed are those of the author and do not necessarily reflect the position of Africa Deployments nor its affiliate companies.*
Paul Runge sponsored Africa Deployments