Zambia’s state investment firm, ZCCM Investments Holdings (ZCCM-IH), aims to increase its minority stakes in mining assets on commercial terms rather than through forced sales, as stated by CEO Kakenenwa Muyangwa. The firm currently holds minority stakes of around 10% in various mines, including those operated by First Quantum Minerals and Vedanta Resources. The goal is to capture a larger share of revenue in response to rising global demand for critical minerals.
ZCCM-IH has recently increased its stake in Lubambe Copper Mines from 20% to 30% and plans to boost its investment in KoBold Metals’ Mingomba Mining from 20% to 25%. Muyangwa highlighted the significance of having a considerable minority stake for influence and leverage. The company will focus on assets that are under development while targeting a range of 5%-15% free carry on investments.
To facilitate expansion, ZCCM-IH is considering a transition from a dividend model to a royalty-based revenue model, akin to its partnership with First Quantum at Kansanshi Mining, which has generated $110 million since 2022. The firm is also evaluating the potential appointment of a financial adviser to assist in capital raising.
