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Copper Mining Agreements in Zambia: Renegotiation or Law Reform?

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  • John Lungu

Abstract

Poverty levels in Zambia are historically associated with development in the mining sector. As long as the sector was performing well and enjoying high international prices for copper, the revenues to government were high and the government could afford the provision of, for example, public health. It is however paradoxical that in the current upturn of commodity prices, the Zambian government has not obtained sufficient revenues to enable it to provide the required public goods. Close scrutiny of the way the state‐owned mining company, Zambia Consolidated Copper Mines (ZCCM), was privatised in the late 1990s reveals that the agreements made between the government and the new mining companies were lopsided. As a consequence, the government has been unable to earn revenues to the same extent as countries like Chile prompting civil society to pressure the government to renegotiate the agreements. The government has, however, chosen the path of law reform to increase the taxation on foreign‐owned mining companies.

Suggested Citation

  • John Lungu, 2008. "Copper Mining Agreements in Zambia: Renegotiation or Law Reform?," Review of African Political Economy, Taylor & Francis Journals, vol. 35(117), pages 403-415, September.
    • Handle: RePEc:taf:revape:v:35:y:2008:i:117:p:403-415
    DOI: 10.1080/03056240802411032
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    Cited by:

    1. Nicolas Berman & Mathieu Couttenier & Victoire Girard, 2023. "Mineral Resources and the Salience of Ethnic Identities," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1705-1737.
    2. Hilson, Gavin, 2020. "The ‘Zambia Model’: A blueprint for formalizing artisanal and small-scale mining in sub-Saharan Africa?," Resources Policy, Elsevier, vol. 68(C).
    3. repec:oxf:wpaper:oxcarre-research-paper-131 is not listed on IDEAS
    4. Fessehaie, Judith, 2012. "What determines the breadth and depth of Zambia's backward linkages to copper mining? The role of public policy and value chain dynamics," Resources Policy, Elsevier, vol. 37(4), pages 443-451.
    5. Katz-Lavigne, Sarah G., 2017. "The renegotiation window: Resource contract renegotiations in the mining industry in Africa from 2000 to 2013," Resources Policy, Elsevier, vol. 51(C), pages 22-30.
    6. Grivas Chiyaba, 2021. "The components and determinants of FDI within firms: A case study of Zambia," Economics Discussion Papers em-dp2021-09, Department of Economics, University of Reading.
    7. Pereira, Vijay & Tuffour, James & Patnaik, Swetketu & Temouri, Yama & Malik, Ashish & Singh, Sanjay Kumar, 2021. "The quest for CSR: Mapping responsible and irresponsible practices in an intra-organizational context in Ghana’s gold mining industry," Journal of Business Research, Elsevier, vol. 135(C), pages 268-281.
    8. Stuart John Barton, 2016. "Policy Signals and Market Responses," Palgrave Studies in the History of Finance, Palgrave Macmillan, number 978-1-137-39098-1, December.
    9. Alexander B. Lippert, 2014. "Spill-Overs of a Resource Boom: Evidence from Zambian Copper Mines," OxCarre Working Papers 131, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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