ZCCM-IH Lifts KoBold's Mingomba Stake to 25% as Zambia Pushes for Bigger Mining Shares
Updated
Updated · CNBCAfrica.com · May 15
ZCCM-IH Lifts KoBold's Mingomba Stake to 25% as Zambia Pushes for Bigger Mining Shares
4 articles · Updated · CNBCAfrica.com · May 15
ZCCM-IH is raising its stake in KoBold Metals' Mingomba Mining to 25% from 20%, part of a broader push to hold larger minority positions in Zambia's mining assets.
CEO Kakenenwa Muyangwa said the state investor wants more leverage and revenue from existing holdings, but any stake increases will be negotiated commercially rather than through forced sales.
The strategy also includes shifting returns toward royalties: ZCCM-IH receives 3.1% of Kansanshi revenue instead of dividends, a model that has brought in $110 million since 2022.
ZCCM-IH is focusing on assets under development, where it may seek a 5%-15% free carry when it owns the mining licence, as Zambia targets copper output of 3 million metric tons by 2031.
Can Zambia's state-led mining push deliver national wealth without deterring the foreign investment needed to triple its copper output?
As AI unlocks Zambia’s deep copper reserves, how will it reshape the global critical minerals race by 2035?
Tripling Copper Output by 2031: Zambia’s Negotiated State Participation and Financial Re-engineering in Mining
Overview
Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) has increased its stake in Lubambe Copper Mines Limited to 30 percent after EMR Capital exited and China’s Jinchengxin Mining Management Company Ltd (JCHX) became the new majority partner. This agreement, expected to be finalized by February 2025, also gives ZCCM-IH marketing rights for copper concentrate output in line with its shareholding. The move is part of Zambia’s broader strategy to boost state participation in mining and support its ambitious goal to more than triple copper output to 3 million metric tons by 2031, marking a significant shift in the country’s mining landscape.