ZCCM Investments Holdings Plc Weighs Launch of In-House Metals Trading Unit

Zambia’s state mining investment arm, ZCCM Investments Holdings Plc (ZCCM-IH), is developing plans to establish its own metals trading unit as part of a broader strategy to capture more value from the country’s vast mineral wealth.

Speaking on the sidelines of the Investing in African Mining Indaba in Cape Town, CEO Kakenenwa Muyangwa said the company intends to access production volumes equivalent to its ownership stakes in various mining ventures and sell those commodities directly on international markets.

Strategic Shift Toward Physical Metals Trading

ZCCM-IH holds minority stakes in several major copper mining operations in Zambia, Africa’s second-largest copper producer. These include assets operated by:

• Vedanta Resources (owner of Konkola Copper Mines)
• International Resources Holdings (owner of Mopani Copper Mines)
• First Quantum Minerals Ltd.
• China Nonferrous Metal Mining Group
• JCHX Mining Management Co. Ltd.

According to Muyangwa, gaining access to physical copper production aligned with ZCCM-IH’s shareholding would allow the company to participate directly in international commodity trading — rather than relying solely on dividend income.

“There’s significant value being attached to having access to physical units of production,” Muyangwa said. “And we’re in a position where we can participate in that.”

Capturing More Value From Zambia’s Copper

The proposed metals trading strategy reflects a wider continental shift. African governments — including Zambia and the Democratic Republic of Congo — are seeking new mechanisms to increase domestic benefits from mineral extraction, particularly as global demand for critical minerals rises.

As the energy transition accelerates and copper demand strengthens for electric vehicles, renewable energy systems and grid infrastructure, producing countries are leveraging their ownership stakes more strategically. Selling a share of output directly on global markets could enhance revenue streams and strengthen bargaining power.

Muyangwa noted that the trading initiative could operate separately from Zambia’s existing government partnership with Mercuria, which was established in late 2024. ZCCM-IH is in discussions with Mercuria and other trading firms regarding potential collaboration but has not finalized its structure.

From Dividends to Royalties: A Revenue Model Overhaul

In parallel with exploring a trading arm, ZCCM-IH is also shifting its revenue model from unpredictable dividend flows to structured royalty agreements.

A key example is its 2023 agreement with First Quantum Minerals at the Kansanshi mine. Instead of receiving dividends for its 20% stake, ZCCM-IH secured a 3.1% royalty on production.

Where dividend payments were previously intermittent and dependent on company decisions, the royalty arrangement now provides annual, more predictable income.

“It’s been a great idea and which has worked out beautifully,” Muyangwa said. “So what we want to do now is to see how we can expand that into other companies.”

The company has approached China Nonferrous and JCHX Mining about similar royalty frameworks, though management has indicated it will not impose changes on mine operators.

Production Stability First

At Konkola Copper Mines (operated by Vedanta) and Mopani Copper Mines (owned by International Resources Holdings), the immediate priority remains stabilizing and ramping up production.

“We don’t want to bring confusion by asking for too many things all at once,” Muyangwa noted.

A Turning Point for Zambia’s Mining Policy

ZCCM-IH’s potential entry into international metals trading represents a strategic pivot in Zambia’s mining governance. By combining:

• Direct commodity trading
• Royalty-based revenue streams
• Stronger leverage over production volumes

the company aims to maximize long-term returns from Zambia’s copper resources while reducing reliance on volatile dividend payments.

As competition for copper and other critical minerals intensifies globally, Zambia’s evolving approach may serve as a model for other resource-rich African nations seeking to move further up the mineral value chain without disrupting existing investor partnerships.