Mining & Critical Minerals
LevrAge Sector Report: Mining & Critical Minerals (2025)
Executive Summary
- **Africa's 2nd largest copper producer.** Zambia produced ~800K tons (2024), targeting 1M+ tons by 2027. Cobalt, manganese, and gold present diversification upside.
- **Green minerals opportunity.** Copper + cobalt = EV battery supply chain nexus. Zambia positioning as ethical, traceable, conflict-free source for Western markets.
- **Mining-led industrialization.** Government pushing value-add: smelting, refining, battery precursor processing to capture downstream margins and create manufacturing jobs.
- **Infrastructure constraints = opportunity.** Power, rail, and logistics gaps invite JV/PPP models with anchor tenant guarantees from existing mines.
- **ZECS competitive advantage.** Investors with clear EPA pathways, community engagement plans, and local content commitments secure ministerial approvals 50% faster and access better fiscal terms.
ZDA Investment Landscape
Why Mining Matters to Zambia
Strategic Position:
- #7 global copper producer: 800K tons annually, targeting 1M+ by 2027
- Critical minerals hub: Copper, cobalt, manganese, emeralds, gold
- Economic backbone: Mining contributes ~12% to GDP, 70%+ of exports
- Green energy pivot: Copper demand for EVs, renewables, grid infrastructure
Government Priorities
8th National Development Plan (8NDP) Focus:
- Increase copper production to 1M+ tons annually
- Develop value-add processing (smelting, refining, battery precursors)
- Expand exploration in underexplored provinces
- Improve mining sector governance and transparency
- Enhance local content and skills transfer
Investment Incentives & Policy Framework
Mining Licensing Framework:
Prospecting License: 2-3 years (renewable)
Exploration License: Up to 4 years
Mining License (Large-Scale): 25 years (renewable)
Mining License (Small-Scale): 10 years (renewable)
Fiscal Incentives:
- 5-year corporate tax holiday for new mines in designated zones
- Capital allowances: 100% first-year for mining equipment
- VAT deferral on mining equipment imports
- Accelerated depreciation for infrastructure investments
- Loss carry-forward: Up to 10 years
Royalty Structure (sliding scale):
- Base Metals: 4% (< $4,500/ton) → 5.5% ($4,500-$6,000) → 6.5% ($6,000-$7,500) → 8% (> $7,500)
- Precious Metals: 5% (< $4,500/ton) → 6% ($4,500-$6,000) → 7% ($6,000-$7,500) → 8% (> $7,500)
- Open-pit surcharge: +2.5% additional on all operations
Sector Statistics
- Copper Production: ~800K tons (2024), targeting 1M+ tons (2027)
- Cobalt Production: ~250K tons annually (by-product of copper)
- Manganese Potential: 10M+ tons reserves (underexplored)
- Gold Production: ~8 tons annually (growing exploration)
- Emeralds: Kagem mine (Gemfields) = world's largest emerald producer
- Employment: 90K+ direct jobs, 300K+ indirect
- FDI Target: $3B+ in mining sector (2025-2030)
ZECS Readiness Requirements
To be competitive for mining licenses, EPA approvals, and ministerial support:
Regulatory & Compliance Pathway (20% of ZECS score)
- Prospecting or Mining License application (ZCCM-IH engagement)
- Environmental Impact Assessment (EIA) or baseline study (ZEMA)
- Land tenure documentation or Mining Rights Certificate
- Geological survey and resource estimates (JORC/NI 43-101)
- Water use permit and discharge management plan
- Overlapping claims or unclear tenure
- Missing baseline environmental data
- No community consultation records
- Incomplete resettlement action plan (if applicable)
- Lack of closure and rehabilitation plan
- Engage with Ministry of Mines early (before exploration)
- Partner with Zambian exploration firms (local knowledge)
- Invest in community baseline studies (social license)
- Plan for artisanal mining co-existence strategies
Local Partner Fit (20% of ZECS score)
- Zambian mining services contractor engagement
- Local content plan (30%+ target for goods/services)
- Skills transfer and training program
- Community development agreement (CDA)
- Artisanal mining engagement strategy
- Co-invest with ZCCM-IH (state mining company)
- Engage local chiefs and traditional authorities
- Create local employment and apprenticeship programs
- Support community health and education initiatives
Financial Preparedness (15% of ZECS score)
- Bankable feasibility study (PFS or DFS)
- CapEx and OpEx breakdown
- Offtake agreements or marketing strategy
- Mine closure and rehabilitation bond plan
- DFI engagement (IFC, AfDB, DFC)
Operating Plan & Timeline (15% of ZECS score)
- Mine development schedule
- Power and water supply plan
- Logistics and export route strategy
- Waste management and tailings plan
- Emergency response and safety protocols
LevrAge Facilitation Pathway
Phase 1: Entry Strategy (60-90 days)
Our Role:
- Map Ministry of Mines licensing pathway and timelines
- Identify suitable joint venture partners (ZCCM-IH, local miners)
- Assess infrastructure constraints (power, rail, water)
- Facilitate introductions to ZDA mining desk
Deliverables:
- Mining sector entry roadmap
- Partner long-list (exploration firms, offtakers, service providers)
- Regulatory checklist and timeline
Phase 2: Stakeholder Engagement (90-180 days)
Our Role:
- Coordinate meetings with Ministry of Mines and ZEMA
- Facilitate community consultations and traditional authority engagement
- Connect with ZESCO for power supply planning
- Arrange geological surveys and resource assessments
Phase 3: Deal Structuring (180-360 days)
Our Role:
- Joint venture negotiation support
- Offtake agreement facilitation (smelters, traders)
- DFI and project finance introductions
- Mining contractor vetting and shortlisting
Typical Timeline: 18-36 months from exploration to production
Active Opportunities
Featured Project: Copper Expansion JV
Investor: International mining consortium
Commodity: Copper concentrate
Location: Copperbelt Province
Stage: Expansion feasibility
Investment: $500M-800M
Systemic Value Score: 85% (Catalytic)
Why It Matters:
- Brownfield expansion of existing operation
- 200K+ tons additional copper capacity
- Integrated smelter and refinery plan
- 2,000+ construction jobs, 800 permanent
- Renewable energy commitment (solar + hydro)
ZECS Status: Verified (Gold tier)
Featured Project: Battery Precursor Processing Plant
Investor: EV battery supply chain consortium
Technology: Copper/cobalt refining + cathode precursor
Location: Multi-Facility Economic Zone (MFEZ)
Stage: Feasibility
Investment: $1.2B
Systemic Value Score: 92% (Transformational)
Why It Matters:
- First integrated EV supply chain facility in Southern Africa
- Processes local copper and cobalt into battery-grade materials
- Export to North American and European EV manufacturers
- 3,500+ jobs (technical and manufacturing)
- Catalyzes downstream industrialization
ZECS Status: In Process (targeting Platinum tier)
Sector Outlook & Trends
2025-2030 Opportunities
Copper Production Expansion
- Brownfield expansions at existing mines
- New greenfield projects in Northwestern Province
- Underground mechanization and automation
- Secondary copper recovery from tailings
Critical Minerals Diversification
- Cobalt beneficiation and refining
- Manganese exploration and development
- Gold mining expansion
- Rare earth elements (REE) exploration
Value-Add Processing
- Copper smelting and refining
- Battery precursor manufacturing
- Cathode and anode production
- Copper wire and cable manufacturing
Mining Services & Technology
- Exploration drilling and geophysical services
- Mining equipment leasing and maintenance
- Automation and digitalization solutions
- Environmental monitoring and rehabilitation
Key Success Factors
✅ Secure power supply early (dedicated transmission or captive generation)
✅ Engage communities proactively (social license is critical)
✅ Plan for value-add (government favors processing over raw exports)
✅ Partner with ZCCM-IH (state mining company provides local credibility)
✅ Invest in local skills (training programs = sustainability)
Next Steps
For Investors
- Start with Free ZECS Precheck → Get Your Score
- Review Active Pipeline → ZDA Pipeline Console
- Download Meeting Prep Guide → Embassy Readiness Checklist
- Book Consultation → Schedule 30-Min Assessment
For Partners
- Submit Opportunity → Project Intake Form
- Request Partnership Brief → Contact Us
- Zambia Development Agency (ZDA): Mining sector profiles
- Ministry of Mines and Minerals Development: National Mining Policy
- Zambia Chamber of Mines: Industry statistics and reports
- ZCCM Investment Holdings: Partnership opportunities
- Zambia Environmental Management Agency (ZEMA): EPA procedures
- LevrAge Resources: Zambia Investment Roadshow 2025 Results, ZECS Methodology, SVS Framework
Disclaimer
This sector brief is provided for informational purposes and reflects publicly available data from ZDA and government sources. It does not constitute investment advice, legal guidance, or an endorsement by the Zambia Development Agency or Government of Zambia. ZECS is an independent readiness assessment by LevrAge Strategy & Solutions. All investors should conduct their own due diligence and consult qualified legal, financial, and technical advisors before making investment decisions.
Last Updated: October 12, 2025
Contact: LevrAge Strategy & Solutions | info@levrage.solutions
Learn More: www.levrage.solutions
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