The Cancellation of Lower Zambezi Mining License

Plans for the development of the $500 million Kangaluwi copper mine in the protected Lower Zambezi National Park have been protracted over more than a decade, amidst widespread opposition due to the project’s environmental impact and its lack of transparency.

Since the early 2000s, Zambezi Resources Ltd applied for and was granted an exploration license, registering a local subsidiary called Mwembeshi Resources Ltd. Currently, Mwembeshi Resources (Bermuda) is the largest shareholder and is owned by a Chinese conglomerate.

In 2011, Mwembeshi Resources was granted a 25-year mining license. Prospection works began and the company submitted an Environmental Impact Statement (EIS) to Zambia Environmental Management Agency (ZEMA), which rejected the EIS amidst ecological concerns in 2012.

Thereafter, a decade-long legal battle ensued between the mining company and the fierce opposition of a group of Zambian conservationist CSOs; the government generally siding with the mining company: ZEMA’s decision was reversed in 2014 and the project was approved, but the Court granted an injunction to halt mining during legal proceedings.

Finally, in 2021, the Court dismissed the case on a legal technicality in favour of Mwembeshi. The company immediately applied for an extension to the EIS, which had expired in 2017, and obtained it in June 2021. Soon after, Mwembeshi kicked-off construction works of mining and housing facilities, roads, and even an airstrip.

President Hichilema’s UPND government backtracked on its earlier opposition to the project and adopted a more moderate stance; according to the Green Economy and Environment Minister Collins Nzovu, the project would proceed but under strict adherence to measures set by the ZEMA aimed at limiting damage to the environment to a minimum; however, “if the risk of environmental degradation becomes high, the Ministry will take action”.

In May 2023, following reports of violations of a number of environmental conditions, ZEMA served the company with a compliance order to stop mining-related activities and the construction of roads and buildings at the project, further ordering it to submit a site environmental restoration plan. Finally, in August 2023, Mwembeshi Resources’ decision letter for mining activities in Luangwa district was canceled, and the company was given 14 days to surrender it.

ZEMA’s decision was welcomed by CSOs and conservationist activist as a victory for the environment. TI Zambia took the opportunity to recommend that ZEMA “enhance their monitoring of projects in order to ensure that mining projects in particular comply with the law and commitments as stated in respective EIS reports”, advocating for better coordination between ZEMA and the Ministry of Mines and Minerals Development in the issuance of mining licenses.

On 11 September 2024, two large scale exploration licenses were approved in the Lower Zambezi National Park Area (one to a company called African Brothers; despite the company’s name though, the beneficial owners of this company are neither African nor Zambian. The TI-Z team had to reevaluate this case and reclassify it as a red flag (open case).