The government of Zambia plans to retain control of some mining licenses that are identified as promising by an ongoing mapping process, according to media reports.
Bloomberg reports that it will also extend an invitation to private companies to partner with the state in the development of these assets.
Africa's second-largest copper producer is developing ambitious strategies to increase the metal's production by over fourfold by the start of the next decade.
This expansion will necessitate that corporations convert numerous exploration projects into operational mines.
At present, the government is providing financing for an aerial geophysical investigation to identify the most advantageous locations.
Mines Minister Paul Kabuswe said at a presentation in Lusaka last week that the state has established a special purpose vehicle (SPV) to facilitate investment.
He said that the SPV will approach partners to discuss business agreements for exploration and mining after licensing some of the regions identified by the mapping.
One potential scenario proposed by the minister is that the state corporation would hold a 45% stake in a joint venture.
The majority of Zambia's copper is produced by subsidiaries of First Quantum Minerals and Barrick Gold Corporation, which accounted for around two-thirds of the country's output last year.
Kabuswe had previously stated that the licenses available for purchase “must be taken as capital,” without providing further information regarding the state's financial involvement in the proposed joint ventures.
The mines ministry and an industry association said last week that they had reached a resolution about a draft bill that could have potentially granted the state a greater portion of new mining projects.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
