$150 MILLION MINING INVESTMENT COMING TO CHINGOLA SET RESERVED FOR COPPER MINE AND PROCESSING PLANT*

BY 

PRECIOUS MWANSA
Trainee Attorney | Energy, Mining & Infrastructure | Dispute Resolution | Reagan Blankfein Gates Legal Practitioners

Chinese Investor run Kumbele Mining Limited has reserved US$150 million for the development of a copper mine and a mineral processing plant in the Luano area of Chingola.

As per the requirements in the Environmental Management Act No. 12 of 2011, an Environmental Impact Assessment (EIA) is underway. So far, the scoping process which includes informing the residents on the mining activities to commence in the area has been completed. The EIA report submitted by Kumbele Mining on 14 April 2021 reveals that the project is expected to have a lifespan of well over 30 years. The project is estimated to create employment for 2, 000 youths during the construction phase and create a little over 1, 000 jobs during the operational phase.

The project is expected to be carried out as follows:

• Development and operation of a copper mine;
• Construction and operation of a copper processing plant;
• Development of a sulphuric acid plant; and
• A tailing storage facility within the exploration area.

The development imports the question of compensation as relating to would-be affected residents in the same area. This is in accordance with Article 16 of the Constitution of Zambia which provides for the payment of adequate compensation where the property has been compulsorily acquired. Additionally, as regards the potential conflict between mining rights and surface rights, s 57(1) of the Mines and Minerals Act, 2015 states that a  holder of a mining right or mineral processing licence shall on demand being made by the owner or lawful occupier of any land, pay the owner or occupier fair and reasonable compensation for any disturbance of the rights of the owner or occupier.’

*For any legal queries on energy, mining & infrastructure matters, and to benefit from our client-centered, results oriented approach to legal issues, please contact Precious at precious.mwansa@rbglp.com or info@rbglp.com or simply visit our website www.rbglp.com or our offices at 3 Mululu Close, off Gt. North Road, Emmasdale, Lusaka and ask to speak to any of our attorneys.