Zambia’s ZCCM-IH Plans Metals Trading Arm to Harness Critical Minerals Boom
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Zambia’s state-owned ZCCM Investments Holdings (ZCCM-IH) is developing plans to trade commodities on global markets, aiming to capture more value from its minority stakes in the country’s expanding copper sector. CEO Kakenenwa Muyangwa revealed the strategy on the sidelines of the Mining Indaba conference in Cape Town, highlighting the rising premium on physical access to critical minerals production.
The trading unit would secure volumes equivalent to ZCCM-IH’s ownership in portfolio companies—including Vedanta Resources and International Resources Holdings’ Mopani Copper Mines—and sell them internationally. Muyangwa told Bloomberg News the move positions the firm to participate directly in high-value commodity flows. “There’s significant value being attached to having access to physical units of production,” he said.
Separate from a Zambian government partnership with trader Mercuria launched in late 2024, the ZCCM-IH initiative complements broader efforts to monetise state equity. It builds on a pioneering royalty model introduced in 2023 with First Quantum Minerals at the Kansanshi mine, where ZCCM-IH’s 20% stake yields a 3.1% royalty instead of dividends.
Muyangwa described the Kansanshi structure as a success, providing stable cash flows tied to output rather than board decisions. “It’s been a great idea and has worked out beautifully,” he said. The firm is now approaching China Nonferrous Metal Mining and JCHX Mining Management to replicate the model across additional assets.
By coupling trading capabilities with expanded royalties, ZCCM-IH seeks to strengthen Zambia’s position in the copper cycle and critical minerals supply chain. The dual approach could enhance fiscal revenues and attract partners as global demand for battery metals and electrification materials surges.
