Licensing challenges and weak data limit Zambia’s copper mining expansion

A World Bank study finds that Zambia’s copper mining sector has strong growth potential driven by rising global demand, but regulatory uncertainty, licensing delays and weak digital systems continue to slow investment. Strengthening institutions, improving geological data and streamlining licensing processes could help Zambia expand production and capture greater economic benefits from its copper resources.

The World Bank Group’s Development Economics Vice Presidency, through the Policy Indicators Group and its Regulatory Efficiency (DECRE) unit, in collaboration with the Finance, Competitiveness and Investment Global Practice, has released a new assessment examining Zambia’s copper mining sector. The report evaluates how regulations, licensing procedures and government services influence investment and operations in the country’s most important industry. The study focuses on the Copperbelt and North-Western provinces, where most of Zambia’s copper production takes place, and is based on interviews, surveys and consultations with more than sixty stakeholders, including mining companies, regulators and industry experts.

Copper mining is the backbone of Zambia’s economy and a major driver of national development. The country is among the world’s leading copper producers, and the metal accounts for the majority of export earnings and a significant share of government revenues. Mining activities are concentrated in the historic Copperbelt region and the rapidly expanding North-Western Province, where large deposits have attracted international mining companies in recent years.

A Global Opportunity for Zambia

Global demand for copper is expected to increase sharply in the coming decades as countries transition to renewable energy systems, electric vehicles and modern power infrastructure. Copper is essential for electrical wiring, renewable energy technologies and battery systems, making it one of the most important minerals in the global shift toward cleaner energy.

This growing demand presents Zambia with a major economic opportunity. The government has set a target of increasing copper production to three million tonnes annually by 2031. Achieving that goal could significantly boost economic growth, government revenues and employment opportunities across the country.

However, the World Bank study finds that Zambia’s mining sector still faces several regulatory and administrative challenges that slow investment and delay project development. Without reforms to streamline procedures and strengthen institutions, the country may struggle to fully benefit from rising global demand.

New Mining Laws Bring Both Reform and Uncertainty

One of the most significant changes in Zambia’s mining sector has been the introduction of a new legal framework. For many years, the sector operated under the Mines and Minerals Development Act of 2015. In 2025, the government replaced this law with the Minerals Regulation Commission Act of 2024.

The new legislation aims to modernise governance of the mining industry by creating an independent Minerals Regulation Commission. The commission will oversee mining operations, grant licenses and ensure compliance with regulations across the sector. The reform is intended to improve transparency, strengthen oversight and simplify the administration of mining rights.

While the new framework represents an important step forward, the transition has also created temporary uncertainty. The new commission is still being established, and some implementing regulations are not yet fully in place. Until the system is fully operational, companies may face uncertainty when navigating licensing procedures and regulatory approvals.

Licensing Delays and Administrative Bottlenecks

The report highlights that licensing procedures remain one of the biggest challenges for mining companies in Zambia. Mining projects must go through several steps before production can begin, including exploration licenses, environmental approvals and consultations with local authorities.

For artisanal miners, who often operate individually or through small cooperatives, the process of obtaining a license can take several months. Applicants must register a business, submit applications through the mining cadaster system and obtain environmental clearance before starting operations.

Small-scale mining companies face additional requirements. They must first obtain exploration licenses and conduct surveys before applying for mining rights. In many cases, the approval process takes longer than expected because of document verification, coordination between agencies and administrative backlogs.

Large-scale mining projects involve even more complex procedures. Companies must prepare feasibility studies, environmental impact assessments and technical plans before receiving final approval. While these requirements are necessary for responsible mining, they also increase the time and cost needed to move projects from exploration to production.

Digital Systems and Geological Data Challenges

Zambia has attempted to modernise its mining administration through digital platforms designed to simplify licensing procedures. The Mining Cadaster Portal allows companies to submit applications and reports online, while the Zambia Integrated Mining Information System was launched to improve coordination between regulatory agencies.

However, technical problems have limited the effectiveness of these systems. Frequent disruptions have forced many companies to rely on both digital and paper-based submissions, slowing down the application process.

Another major challenge is the lack of modern geological data. Much of Zambia’s geological information is decades old, and large areas of the country remain insufficiently mapped. Without reliable geological surveys, exploration companies face greater uncertainty when evaluating potential mining sites.

To address this gap, Zambia has launched a nationwide aerial geophysical survey aimed at generating updated geological data that can help attract new investment and support future exploration.

The Path Forward for Zambia’s Copper Industry

Despite these challenges, the report concludes that Zambia is well-positioned to benefit from the global demand for copper. The country has abundant mineral resources, a long history of mining expertise and strong interest from international investors.

Improving regulatory clarity, strengthening digital systems and expanding geological data could significantly improve the investment environment. Reforms that streamline licensing procedures and enhance coordination between government agencies would help mining projects move more quickly from exploration to production.

If these improvements are successfully implemented, Zambia could unlock new investment opportunities, expand copper production and strengthen its role as a key supplier of minerals needed for the global energy transition. As demand for critical minerals continues to rise, the country’s ability to modernise its mining sector may determine how effectively it can transform its natural resources into long-term economic growth.