What are critical minerals?

The Strategy defines critical minerals as naturally occurring minerals crucial for contemporary technologies and national growth. These include lithium, tin, graphite, nickel, cobalt, copper, manganese, uranium, and rare earth elements. The Zambian government views these minerals as vital for the country’s economic development and recognizes the need for a structured approach to manage them sustainably, helping Zambia become a middle-income nation by 2030.

Key actions and their implications

The Strategy addresses several challenges facing Zambia’s mining sector, including illegal mining and insufficient geological data. It outlines a four-point action plan to enhance the country’s capacity to manage its critical mineral resources effectively.

1. ADVANCING GEOLOGICAL MAPPING AND RESOURCE MANAGEMENT

The first action plan focuses on improving geological knowledge in Zambia. The government aims to:
• Invest in training geoscience personnel at institutions like the Geological Survey Department and local universities.
• Conduct geological mapping and resource exploration using advanced technologies, including artificial intelligence.
• Establish a Geological Mapping and Development Fund to support these initiatives.
• Reform regulatory frameworks to facilitate better management of mineral rights.
The current Mines and Minerals Development Act is being reviewed and may be replaced by the Minerals Regulation Commission Bill,  which proposes significant changes in how mining rights are administered.

2. ENHANCING GOVERNMENT AND PRIVATE SECTOR PARTNERSHIPS

The second action point seeks to increase government involvement in the mining sector by fostering partnerships with local and foreign investors. This includes:
• Creating a Special Purpose Vehicle (SPV) that will hold at least a 30% stake in new critical mineral projects.
• Establishing a local content requirement for procurement in the sector.
• Supporting artisanal and small-scale miners with formal licenses.
This shift will expand the government’s role in mining, requiring legislative changes to ensure its interests are safeguarded.

3. PROMOTING BENEFICIATION AND VALUE ADDITION

The Strategy encourages local processing of critical minerals to enhance economic returns. Key components include:
• Reviewing policies to limit the export of raw minerals.
• Offering tax incentives for local processing industries.
• Creating a government fund to support local value addition.
This may lead to a decrease in raw mineral exports as Zambia prioritizes local production, requiring foreign investors to contribute to training and capacity-building efforts.

4. FOSTERING RESEARCH AND DEVELOPMENT

Lastly, the government aims to establish a fund dedicated to advancing research in mining technologies. This includes:
• Setting up mining hubs for collaborative research.
• Developing incentives for research initiatives.

Conclusion

The National Critical Minerals Strategy is a comprehensive framework aimed at maximizing Zambia’s socio-economic benefits from its mining sector. With legislative changes already underway, including the proposed Bill and associated Regulations, further developments are expected as the government continues to implement the strategy through 2028.
The ultimate goal is to create a robust and sustainable mining industry that contributes to the country’s economic growth while ensuring that local communities also benefit from the wealth generated by Zambia’s critical minerals.