The Zambian government should amend the law governing the mining sector in order to ensure citizens benefit more from the sector, a local think-tank said on Monday.
The Policy Monitoring and Research Center (PMRC) said the Mines and Minerals Development Act of 2015 should be amended if the government was to maximize benefits from its intention to acquire a stake in some mining firms.
“The amendment of the Act will ensure proper coordination and an adequate legal framework governing the mine, Secondly, poor corporate governance has led to the fall of many private and state-owned enterprises around the world,” Bernadette Deka-Zulu, the think-tank’s executive director said in a release.
She has since called for the embedment of corporate governance in the running of mining firms and the government will have a large stake in order to ensure sustained operations.
Last month, the government through its investment arm, the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) competed for a 100 percent acquisition of Mopani Copper Mines following its negotiations with Glencore Corporation.
The takeover follows the foreign mining firm’s intentions to place its Zambian mine on care and maintenance last April sighting the impact of the COVID-19 and low copper prices. Enditem