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Mining companies operating in Zambia will have six months to develop and submit Supplier Development Programmes to the Ministry of Mines and Minerals Development once the new Local Content Regulations take effect next year.
The directive follows the signing of the Local Content Statutory Instrument (SI) of 2025 by Mines and Minerals Development Minister Paul Kabuswe.
The regulations are scheduled to come into force on January 1, 2026, marking a major step in promoting Zambian participation in the mining value chain.
According to the SI, “a mining company or mining-related company shall, within six months of the commencement of these regulations, develop and submit a supplier development programme to the Ministry responsible for mines.”
Read more: Govt urges businesses to prepare for local content bill
The new regulations aim to strengthen local linkages within the mining sector to ensure that Zambian businesses benefit more directly from the country’s mineral wealth.
Under the law, mining firms are required to comply with the Fourth Schedule of the regulations when developing their supplier development programmes. Companies that fail to comply will commit an offence and face severe penalties.
In addition, firms must keep detailed records of local suppliers involved in the procurement of both core and non-core mining goods and services. This data will serve as the basis for measuring compliance with local participation targets.
The regulations also introduce a 15 percent margin of preference in bid evaluations for local suppliers of core mining goods and services, a move designed to give domestic companies a competitive edge.
“A mining company or mining-related company shall, in evaluating a bid, apply a margin of preference of 15 percent for a core mining good or service supplied by a local company,” the regulation stated.
Furthermore, the procurement of certain non-core mining goods and services deemed essential to operations will be reserved exclusively for Zambian companies, ensuring local firms have guaranteed access to specific market segments.
Under Regulation 7, companies must, at the start of each year, update records of local suppliers, include planned local procurement in their annual procurement plans, submit those plans to the Director at the Ministry of Mines, and publish their procurement plans and tenders in a daily newspaper or on their company website.
Failure to meet these requirements will attract heavy fines — not less than one million penalty units, plus 150,000 penalty units for each day the offence continues.
Directors, managers, or shareholders found to have consented to or been complicit in violations will also face personal liability under the new law.
The Ministry said the regulations represent a decisive policy shift toward building a strong domestic supply base, creating jobs, and fostering inclusive growth in Zambia’s mining sector.
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