Mining expert Charles Mulila, Executive Director of […]

Mining expert Charles Mulila, Executive Director of Development, Education Community Projects (DECOP), has raised concerns regarding ZCCM Investments Holdings Plc’s recent approval of a $498 million Tailings Leach Plant at Konkola Copper Mines’ (KCM) Nchanga operation in Chingola.

The approval enables KCM, majority-owned by Vedanta Resources Limited a foreign-owned firm to proceed with the project, following the signing of a $498 million engineering, procurement, and construction agreement with China NERIN Engineering Company Limited on 17 September 2026.

Konkola Copper Mines (KCM) is owned jointly by Vedanta Resources Limited (which holds an 80% stake and management control) and the Government of the Republic of Zambia through ZCCM Investments Holdings Plc (which holds the remaining 20% stake.

Speaking in an interview with the Zambian Business Times – ZBT, Mulila expressed skepticism about the financial arrangement, highlighting the limited benefits to ZCCM-IH, which holds only a 20% stake in KCM.

“If ZCCM-IH approves the project but other companies are providing the funding, it means we as ZCCM-IH, and by extension the nation, may not fully benefit,” Mulila stated.

This is after ZCCM-IH, which holds a 20.6 percent stake in KCM, officially confirmed that the project will be financed by KCM and will not require any capital contribution from ZCCM-IH.

“This arrangement simply doesn’t make sense to me. If ZCCM-IH approves the project but the actual funding is coming from other companies, then ZCCM-IH, and by extension, the nation, stands to gain very little.

With only a 20% stake in KCM, our share is far from sufficient. “For years, we’ve been calling for an increase in the local shareholding portfolio, from the current 20% to a more balanced split, ideally 51% local and 49% foreign. Approving such massive investments without putting in our own capital raises serious questions. If you want a fair share of the profits, you must also contribute to the investment.

Otherwise, when profits are distributed, we’ll always be on the losing end.” ZCCM – IH noted that once fully operational, the plant is expected to produce approximately 70,000 tonnes of LME Grade A copper cathode annually.

It said the facility is expected to be the largest tailings leach plant in Africa using the latest technology and will process about 53,500 tonnes of tailings per day.

“From what I understand, this approval is yet another example of poor negotiation on our part as a nation. We’re not pushing hard enough for a better deal.” Mulila pointed to examples from other countries, citing Botswana’s success in increasing local shareholding in mining ventures.

 “Why do we continue to grant foreign investors the lion’s share while local interests are sidelined? If we want national development, ZCCM-IH should commit capital and negotiate fairer terms.”

 Mulila concluded by urging ZCCM-IH and government stakeholders to ensure future agreements prioritize both national participation and equitable financial commitment, ensuring that the benefits of Zambia’s mineral wealth are more broadly shared.

Article by ZBT Analyst