Zambian Finance Minister Bwalya Ng’andu recently stated that the Zambian government does not intend to take over more mining companies and has no plans to nationalize the mining industry.
In the past two years, the government has acquired part of the local businesses of Glencore and Vedanta Limited. In a speech last December, President Lungu stated that the government hopes to “possess a large number of shares” in unspecified mines, which has triggered public concerns about a new wave of nationalization. In this regard, Gandu said that President Lungu’s statement has been misunderstood and the government will never forcefully take over other mining companies or nationalize them.
Zambia has experienced painful lessons in the nationalization of mines in the last century, and production has fallen sharply, which eventually led the government to cancel the policy in the 1990s. After privatization, mine production more than tripled. Gandu’s remarks may ease the concerns of investors, including First Quantum Mining Co., Ltd. and Barrick Gold.