Revisions to the Mining Framework in Zambia: Strengthening Regulation and Citizen Participation

Last year, Zambia’s mining sector underwent significant legal reform through the Minerals Regulation Commission Act No 14 of 2024 (Act). This Act repealed and replaced the Mines and Minerals Development Act No 11 of 2015, and introduced a new regulatory framework for the governance of mineral resources. 

Coming into force on 3 June 2025, this new framework is designed to strengthen regulation of the mining sector, while simultaneously ensuring greater participation by local citizens in mining activities.

The Act establishes guiding principles for the exploitation of minerals.

Importantly, section 4(e) provides that citizens shall have equitable access to mineral resources and benefit from mineral resource development. This principle underpins several provisions of the Act designed to ensure meaningful participation by Zambians in the mining sector.

Artisanal mining and local participation

The Act maintains provisions on artisanal mining, which is to only be undertaken by a citizen or a co-operative wholly composed of citizens. By restricting artisanal mining licences to citizens, the Act formalises small-scale mining activities while ensuring that the economic benefits are enjoyed by local communities.

The Act also promotes local participation through shareholding and ownership requirements for certain categories of mining rights. 

For instance, section 20(3) of the Act provides that small scale mining may only be undertaken by a citizen-owned, citizen-influenced, or citizen-empowered company. A citizen=empowered company has 25-50% of equity owned by citizens; a citizen-influenced company has 25-50% of equity owned by citizens and citizens have significant control of management; a citizen-owned company has at least 50% owned by citizens and significant management control.

Similarly, section 11(3) of the Act provides that a mining right over an area exceeding 6.68 hectares, up to a maximum of 1,000 hectares, shall only be issued to a citizen-influenced, citizen-empowered or citizen-owned company. 

This effectively ensures that mining ventures within these categories incorporate a meaningful level of Zambian ownership.

Minerals Regulation Commission

Beyond citizen participation, the Act introduces a significant institutional reform through the establishment of the Minerals Regulation Commission (MRC). The MRC centralizes the regulatory functions previously exercised by the Ministry of Mines and Mineral Development (MMMD). The functions of the MRC include granting, suspending, and revoking mining and non-mining rights, regulating and monitoring mining operations, and ensuring orderly exploration and exploitation of mineral resources. This streamlined framework replaces the previously fragmented regime carried out by Directors and the Minister of Mines, a situation which could potentially perpetuate irregular dealings with mining rights.

The new mining framework also introduces enhanced eligibility criteria for participation in the mining sector. Applicants for mining rights must satisfy statutory eligibility requirements, including possession of a valid tax clearance certificate and compliance with corporate qualification requirements. Companies seeking mining rights must be incorporated under the Companies Act No. 10 of 2017 and maintain a registered office in Zambia. The Act also limits the concentration of mining rights by restricting the number of mining rights that may be held to five, thereby promoting broader participation in the mining sector.

Further, the MRC strengthens environmental accountability by embedding environmental protection into the licensing regime. The MRC is mandated to monitor environmental management and progressive rehabilitation of mining sites in collaboration with the Zambia Environmental Management Agency (ZEMA).

Corporate accountability is also enhanced through the introduction of clear offences and mechanisms for enforcement. The legislation criminalises activities such as undertaking mining or mineral processing operations without the requisite licence or regulatory approval. On the strength of such provisions, illegal mining is deterred and regulatory compliance is strengthened. 

All in all, the Act represents a modern and forward-looking framework for the governance of Zambia’s mineral resources. By strengthening regulatory oversight, promoting citizen participation, and reinforcing environmental and corporate accountability, the Act provides a clear and predictable legal environment for investors. This approach positions Zambia as an attractive and responsible destination for mining investment while ensuring that the country’s mineral wealth contributes meaningfully to sustainable economic development, and that beneficiation is felt at the grassroots level.

Read the first Local Insights From Zambia article, " World class and innovative solutions for Zambia’s evolving legal landscape", introducing August Hill & Associates and discussing the evolution of the Zambian legal and business landscape, here. 

For more information on August Hill & Associates, visit the firm's website.