Zambia's Cabinet has approved the establishment of a new organisation to invest in and trade minerals to increase its revenue from its natural resources.
The government of Zambia, Africa's second-largest copper producer, will establish a special purpose vehicle (SPV) for investment and trading purposes.
ZCCM Investment Holdings currently holds many mining properties.
Reuters quoted the Cabinet as saying that the new entity would help Zambia "move away from the dividend payment model for mineral resources and adopt a production-based sharing mechanism to ensure benefits accrue to the people of Zambia beyond Statutory obligations".
It was further said that the new business model would facilitate the sharing of minerals produced, as well as the government's ability to negotiate mineral pricing and assure the accurate declaration of mineral consignments intended for internal and export usage.
ZCCM has a stake in mines held by Barrick Gold, Vedanta Resources, and First Quantum Minerals that ranges from 10% to 20%.
Mopani Copper Mines was recently sold to a unit of the International Holding Company of the United Arab Emirates, while the remaining 51% was retained.
Zambia is striving to increase its annual output to three million metric tonnes of copper within the next decade, as the demand for the metal used in the electricity and construction industries continues to increase.
The country produced 698,000 metric tonnes of copper last year, a decrease from 763,000 metric tonnes the previous year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
