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Mining in Zambia: a briefing for South African contractors
Mining in Zambia: 824,425 tonnes of copper in 2024. Where it is mined, the 2026 local content rules, permits, tax basics and logistics for SA contractors.
Contents 10 sections
Zambia mined 824,425 tonnes of copper in 2024, by the Ministry of Mines’ count, and USGS estimates 940,000 tonnes for 2025. The industry expects its first million-tonne year in 2026, mostly from the Copperbelt and North-Western provinces. A South African contractor can work there. Since 1 January 2026, though, mines must reserve a rising share of their procurement budget for Zambian local companies. The rule covers core services such as drilling and blasting, mine development and bulk transportation. Ore and fuel haulage are reserved for local companies entirely.
Figures and rules checked 25 Sep 2026.
Mining in Zambia: key figures
| Measure | Figure | Year | Source |
|---|---|---|---|
| Copper production | 824,425 tonnes, up 13.1% | 2024 | Ministry of Mines, Statistical Bulletin 2024 |
| Copper production, low point of recent years | 728,558 tonnes | 2023 | Ministry of Mines, Statistical Bulletin 2024 |
| Copper mine production (estimate) | 940,000 tonnes of a world 23 million | 2025 | USGS MCS 2026 |
| Copper reserves | 21 million tonnes of a world 980 million | 2025 | USGS MCS 2026 |
| Copper production expected | one million tonnes, a first | 2026 | Zambia Chamber of Mines |
| Existing mines at full capacity | 1.6 million tonnes a year | 2026 | Zambia Chamber of Mines |
| Government production target | three million tonnes a year | by 2031 | Zambia Chamber of Mines |
| Copper exports | 801,994 tonnes | 2024 | Ministry of Mines, Statistical Bulletin 2024 |
| Mining employment | 90,075 | 2023 | Ministry of Mines, from ZamStats |
| Large-scale mining licences issued | 37 | 2024 | Ministry of Mines, Statistical Bulletin 2024 |
| New foreign investment since 2022 | more than US$12 billion, almost all in mining | 2022 to 2026 | Chamber of Mines, Mining Indaba release |
| Annual inflation | 6.2% | Aug 2026 | Bank of Zambia |
Sources: Ministry of Mines Statistical Bulletin 2024, USGS MCS 2026 Copper, Zambia Chamber of Mines, 8 Jun 2026, Chamber of Mines media release, 9 Feb 2026, Bank of Zambia, all read 25 Sep 2026. The 2025 figures differ by source: the Mining Indaba release says production rose 8% in 2025, and USGS estimates about 14%.
Where mining happens in Zambia
“Many of the country’s large copper mining and processing operations were in Copperbelt Province in north-central Zambia,” USGS reports (USGS 2020-21 Minerals Yearbook, Zambia). North-Western Province holds the Kansanshi mine north of Solwezi and the Sentinel mine, which USGS lists with capacity for 57 million tonnes of ore a year.
The Copperbelt mixes open pits and underground mines. USGS’s 2020-21 yearbook lists the Chingola A2 and Nchanga open pits, underground mining at Nchanga and Mufulira, and open pits and shafts at Nkana near Kitwe. The Chamber of Mines lists investment commitments that bring pit and development work. They include US$1.25 billion for the Kansanshi S3 expansion and US$2 billion for Barrick’s Lumwana Super Pit expansion. CNMC is investing US$1.3 billion to restart Chambishi and Luanshya, and Vedanta says it intends to invest US$2.7 billion at Konkola Copper Mines.
For a South African load and haul or drill and blast contractor, that means open-pit stripping, underground development and plant work. Most of it now falls under the local content rules below.
Licences and the regulator
For a decade the base law was the Mines and Minerals Development Act of 2015 (USGS). Two newer Acts now sit on the statute book: the Minerals Regulation Commission Act, 2024 (No. 14 of 2024) and the Geological and Minerals Development Act, 2025 (No. 2 of 2025), both cited in SI 68 of 2025. The Ministry says the regulatory function moved from the Ministry to the Minerals Regulation Commission in 2025. Check which Act governs your client’s licence.
Mining rights are held by the mine owner. The Ministry’s online Mining Cadastre portal handles licence applications, renewals, transfers and reports.
A contractor may need its own environmental licences from the Zambia Environmental Management Agency (ZEMA). ZEMA issues hazardous waste licences to anyone who will “generate, pre-treat, treat, handle, transport, store, dispose of” hazardous waste. It also issues waste management and emission licences (ZEMA). Check whether workshop waste such as used oil and filters falls under them.
Local content rules for contractors
SI 68 of 2025 came into operation on 1 January 2026. The Ministry’s March 2026 guidelines say they apply to “All suppliers and contractors in the mining value chain.”
| Rule | What it says | Source |
|---|---|---|
| Local company | A citizen empowered company (25% to 50% citizen equity) or a citizen owned company (at least 50.1% citizen equity with citizen control of management) | SI 68 reg 2; guidelines |
| Reserved share for core goods and services | 20% of a mine’s annual procurement budget within six months, 25% within one year, 35% within two years, at least 40% within five years | SI 68 reg 4 |
| Core mining services | Include drilling and blasting, mine development, shaft sinking, bulk transportation, dewatering, metal fabrication, engineering and after-sales services | SI 68, First Schedule |
| Margin of preference | 15% for a local company bidding on core goods or services | SI 68 reg 5 |
| Non-core services, fully reserved | Include haulage of ores, concentrates and refined metals; haulage of fuel, consumables and personnel; camp management; minor maintenance; freight forwarding and warehousing | SI 68 reg 6, Second Schedule; guidelines |
| Lotting | If one local company cannot meet the threshold, the contract is split into lots. This does not apply to buying direct from an original equipment manufacturer | SI 68 reg 4(3) and 4(4) |
| Remainder to non-local companies | If local companies still cannot meet the threshold after lotting, the mine may give the rest to a non-local company and must report it to the Director quarterly | SI 68 reg 4(5) and 4(6) |
| Supplier development | At least 0.05% of annual procurement spend on a supplier development programme | Guidelines |
| Penalty | On conviction, a fine of at least one million penalty units, plus 150,000 penalty units a day while the offence continues | SI 68 reg 9 |
The guidelines show the margin at work. A local bid of US$950,000 for a dump truck is adjusted to US$807,500 for evaluation, so it beats a non-local bid of US$850,000. The local company is then awarded the contract at its full US$950,000. The guidelines also say a franchise that only sells a manufacturer’s machines “shall not qualify as an OEM”.
For a South African contractor, the practical routes are a Zambian partner holding at least 25% of a local company, or scopes the local market cannot fill. Regulation 4(5) lets a mine give the rest of a reserved share to a non-local company once lotting has failed.
Zambian work permits for contractors
The Department of Immigration issues two permits that matter to a contractor.
- Employment Permit, for employment of more than six months, extendable up to ten years. Only “an Employer, a Practising Lawyer and an Immigration Consult” can apply, and the worker stays outside Zambia until approval. Mining projects need “a copy of letter of award specifying completion date and value of project”. The application also needs a succession plan with a Zambian understudy, police clearance and adverts for the post in “two leading newspapers”.
- Temporary Employment Permit, for a business visitor staying more than 30 days, valid for up to six months in any twelve.
When a foreign employee leaves, the employer must surrender the permit within one month and pay for repatriation if the person does not leave.
Zambian mining tax basics
These are facts from the Zambia Revenue Authority tax information page, read 25 Sep 2026.
- VAT is charged at a standard rate of 16%.
- The general company income tax rate is 30%, with other rates in the Charging Schedule.
- Payments to non-resident contractors are subject to withholding tax under section 81A.
- Businesses in mining operations cannot register for turnover tax, except artisanal and small-scale miners.
- Mineral royalty on copper is charged on norm value, the monthly average London Metal Exchange cash price times the metal sold. The page’s table, headed “effective 1st January 2019”, runs from 4% below US$4,000 a tonne to 10% at US$9,000 and above, and leaves out the band between US$7,000 and US$9,000. Confirm the current rates with ZRA. Royalty is deductible for company income tax.
- Property transfer tax on mining rights is 10%.
Logistics and currency
Zambia is landlocked, so every route crosses a border. The ZRA and JICA border study for 2024 covers Chirundu, on the Zimbabwe border. It calls Chirundu “the access route for Zambia’s Imports that come through Durban” and the third busiest port of entry for imports. Average import clearance at Chirundu fell from 2 days 7 hours in 2022 to 22 hours 5 minutes in 2024. At the Kazungula Bridge post on the Botswana border, import and transit clearance averaged 16 hours 26 minutes (ZRA and JICA, Nov 2024). Budget for those hours on every machine and spares delivery.
The Lobito Corridor links Angola, the DRC and Zambia (LCIPA). On 3 Jul 2026 the Africa Finance Corporation reached financial close on US$753 million for the Angolan line. It covers the 1,300 kilometre brownfield railway from the Port of Lobito to the DRC border (AFC). A memorandum on a Zambia-Lobito rail line was signed on 31 Oct 2023. The Ministry expects the Lobito and Nacala corridors to “lower export costs”. President Hichilema also named the TAZARA railway to Tanzania in his Mining Indaba speech.
The currency is the kwacha. ZRA converts royalty norm values at the monthly Bank of Zambia mid-rate. The Bank of Zambia reported annual inflation of 6.2% in August 2026.
Risks and what to watch
Common questions
How much copper does Zambia produce?
The Ministry of Mines counted 824,425 tonnes in 2024, up 13.1% on 2023. USGS estimates 940,000 tonnes for 2025. The Zambia Chamber of Mines says the country expects its first million-tonne year in 2026, and the government’s target is three million tonnes a year by 2031.
Can a South African contractor work on a Zambian mine?
Yes, within limits. Since 1 January 2026 mines must reserve a share of their annual procurement budget for Zambian local companies supplying core goods and services. These include drilling and blasting, mine development and bulk transportation. The share rises from 20% to at least 40% over five years. Ore, concentrate and fuel haulage are reserved for local companies entirely. A local company needs at least 25% citizen ownership.
What permit does a South African need to work on a Zambian mine?
An Employment Permit for employment longer than six months, applied for by the employer, a lawyer or an immigration consultant while the worker stays outside Zambia. For mining projects the application needs the letter of award with the project value and completion date. It also needs a succession plan with a Zambian understudy and newspaper adverts for the post. Business visitors staying over 30 days need a Temporary Employment Permit, valid for up to six months in twelve.
Sources
- USGS, Mineral Commodity Summaries 2026: Copper (Feb 2026), read 25 Sep 2026
- Ministry of Mines and Minerals Development, Annual Mining Statistical Bulletin 2024 (Jun 2026), read 25 Sep 2026
- Zambia Chamber of Mines, From good to great: Zambia’s mining sector takes stock (8 Jun 2026), read 25 Sep 2026
- Zambia Chamber of Mines, Mining Indaba media release (9 Feb 2026), read 25 Sep 2026
- SI No. 68 of 2025, Local Content Regulations (14 Oct 2025), read 25 Sep 2026
- Ministry of Mines and Minerals Development, Guidelines for the implementation of the local content regulations (Mar 2026), read 25 Sep 2026
- Zambia Revenue Authority, Tax information, read 25 Sep 2026
- Department of Immigration, Permit types, read 25 Sep 2026
- Zambia Mining Cadastre portal, read 25 Sep 2026
- Zambia Environmental Management Agency, Licensing, read 25 Sep 2026
- ZRA and JICA, Endline Time Measurement Survey 2024, Chirundu and Kazungula OSBPs (Nov 2024), read 25 Sep 2026
- Africa Finance Corporation, financial close on the Lobito Corridor Railway Project (3 Jul 2026), read 25 Sep 2026
- Lobito Corridor Investment Promotion Authority, read 25 Sep 2026
- USGS, 2020-2021 Minerals Yearbook: Zambia (Jan 2025), read 25 Sep 2026
- Bank of Zambia, read 25 Sep 2026
