LUSAKA — Cabinet has approved a new mining royalty framework that introduces sliding-scale rates linked to international copper prices, ending months of uncertainty that had delayed expansion projects on the Copperbelt and North-Western Province.
Mines Minister Paul Kabuswe said the framework would generate an additional K2.1 billion annually at current prices while preserving incentives for exploration in greenfield areas. The Zambia Chamber of Mines said its members appreciated policy predictability but reiterated calls for reduced ZESCO industrial tariffs.
First Quantum Minerals indicated it would proceed with a $1.2 billion expansion at Kansanshi Mine following the announcement. Smaller operators warned that compliance costs associated with local content requirements could still squeeze margins.
Parliament must ratify the statutory instrument within 21 days. Opposition MPs demanded publication of the full fiscal impact assessment before approval. Environmental groups urged that a portion of new royalty receipts be ring-fenced for mine rehabilitation and community development funds.
Economists at the Bank of Zambia projected that improved mining receipts could ease pressure on the Kwacha if copper prices stabilise above $8,500 per tonne through the second half of 2026.
