(Bloomberg) — Zambia’s plans to take larger stakes in some mining projects will not impact existing operations in the country, including exploration, according to a senior government official.

The mines ministry in August unveiled a new strategy under which a state-owned company would control at least 30% of future critical mineral mines.

President Hakainde Hichilema’s special assistant on finance and investment, Jito Kayumba, said the initiative would only apply to government-reserved permits (more than 40) aimed at bringing in investment partners.

“Today, any organization operating and licensed in Zambia will not be subject to any funding from the government,” Kayumba said by phone. “There will be no demand to restructure the shares for the government or a Zambian company to come in and take the 30%.”

Africa’s second-largest copper producer is pursuing an ambitious plan to more than quadruple production of the metal by the beginning of the next decade. To have any chance of success, investors will need to spend billions of dollars to turn early-stage projects into operating mines.

First Quantum Minerals Ltd. and Barrick Gold Corp.’s subsidiaries accounted for nearly two-thirds of Zambia’s copper production last year. These companies are already working to increase production in the coming years. International Resources Holding, Vedanta Resources Ltd. in Abu Dhabi. and China Nonferrous Mining Corp. Its units also operate mines in the country. Bill Gates-backed KoBold Metals is running a major exploration program.

Several dozen permits reserved for the government will then be transferred to a state firm that will negotiate agreements with partners. According to Kayumba, the company will hold significant minority stakes in the projects but will have non-operational shares. He said a potential joint venture for some licenses was currently being discussed with Barrick, the world’s No. 2 gold producer.

“We are encouraging more joint ventures with Zambians and this is not mandatory,” Kayumba said of other new licenses to be issued. “That doesn’t necessarily mean government involvement, but it could be local communities, it could be Zambian entrepreneurs.”

©2024 Bloomberg LP