ZCCM-Investments Holdings (ZCCM-IH) has earned over US$110 million in royalty revenue from Kansanshi Mining Plc between 2022 and 2024, a move the company says has proven far more beneficial than relying on dividends alone.
According to the latest edition of Mining Corner 360 published by the state-owned investment company, ZCCM-IH secured a cumulative US$110.64 million from the mine after converting its dividend rights into a 3.1 percent gross revenue royalty in 2021.
The decision marked a major shift from the previous equity-only model where returns depended on dividends declared by the mining company.
The report notes that the change has already paid off as Kansanshi did not declare any dividends in 2023 and 2024, meaning ZCCM-IH would have received no income during those years under the old system.
However, because royalties are calculated on sales revenue rather than profits, the company still received consistent earnings.
Financial data contained in the report shows that ZCCM-IH earned US$17.66 million in royalty revenue in 2022, US$38.48 million in 2023 and US$54.51 million in 2024.
These earnings bring the three-year total to US$110.64 million.
In comparison, Kansanshi declared dividends only in 2022, paying out US$59.6 million, with no dividends declared in the following two years.
The publication explains that unlike dividends, which are determined by company profits and decisions made by the board, royalties are based on total revenue generated from minerals mined within the licence area.
The royalty is paid quarterly and will remain in place for the entire life of the mine, which is currently projected to operate until 2045.
Because the royalty is calculated from gross revenue rather than net profit, ZCCM-IH says the model offers greater predictability and reduced financial risk, especially in the mining industry where operational costs and fluctuating commodity prices can significantly affect profits.
The report further reveals that over a 10-year period between 2012 and 2021, ZCCM-IH received a total of US$244.25 million in dividends from Kansanshi, highlighting how profit-based payments can vary depending on market conditions.
By contrast, analysis in the publication shows that during similar market cycles, dividend income averaged around US$24 million annually, while the royalty system would have delivered about US$48 million per year, making it both more stable and more lucrative.
ZCCM-IH also benefits from strong international metal prices under the royalty arrangement because payments increase when revenue rises due to higher commodity prices on global markets such as the London Metal Exchange and the London Bullion Market Association.
The company further expects revenue from the mine to increase following the commissioning of the S3 Expansion Project at Kansanshi in August 2025, which is aimed at scaling up operations even as the mine deals with declining ore grades.
ZCCM-IH says the shift to the royalty-based income model has strengthened its financial position and created more stable cash flows.
The company believes the new structure will help it support investments in Zambia’s gold subsector and the broader mining value chain, while positioning the state-owned firm as a more active investor in the country’s mining industry.
Kalemba, March 14, 2026
