Zambia Mining Boom

Kabuswe says Record Investments and Renewed Production are Driving the Growth

By Francis Maingaila

Lusaka, Zambia – January 22, 2025 – Zambia's mining sector has witnessed significant growth in 2024, largely due to the recommencement of copper production at Konkola and Mopani Copper Mines.

According to Paul Kabuswe, Minister of Mines and Mineral Development the surge in production comes as the country embarks on major projects and reforms, positioning the sector for future expansion.

Kabuswe, told journalists at a media briefing today that the recommencement of operations at these mines has dramatically increased Zambia's overall production capacity, contributing to a 12 percent rise in total output.

The Minister highlighted the achievements of key players in the mining industry, pointing to Mopani and Konkola Copper Mines (KCM) as examples of companies that have made substantial productivity improvements, driving the growth in the sector.

Kabuswe responded to claims made by the previous government regarding certain mines not operating as promised, affirming that both KCM and Mopani remain pivotal to Zambia's mining progress.

“The operational improvements at KCM and Mopani are clear indicators of the country’s efforts to optimize mining production,” Kabuswe explained. “These developments reflect expanded capacities and an increased focus on boosting productivity.”

Beyond copper, other mineral commodities, including nickel, cobalt, and emeralds, have surpassed 2023 production levels, further solidifying Zambia's position as a key player in the global mining industry.

Despite challenges such as energy shortages due to severe drought conditions, Kabuswe expressed optimism, noting that the sector is poised for continued growth in 2025, especially with ongoing interventions in the energy sector.

In 2024, the Ministry of Mines granted 79 percent more mining and non-mining rights licenses compared to 2023, signaling a strong commitment to expanding the industry.

Seasonal mining licenses saw a remarkable 124 percent increase, rising from 304 in 2023 to 680 in 2024. Notably, 63 percent of these licenses are now held by Zambian citizens, a sign of increased local participation in the sector.

The Minister also emphasized the role of foreign investment in revitalizing the mining industry, particularly the recapitalization of Mopani Mines.

The agreement with International Resource Holdings (IRRH) led to a $1.1 billion US dollar investment, making Mopani one of Zambia's most technologically advanced underground mines.

This investment has not only boosted copper production but also led to a rise in employment, from 10,765 to 12,684 workers. Additionally, 82 percent of Mopani’s suppliers are local businesses.

"Mopani's revitalization is a testament to the strong partnerships between the government and international investors, creating sustainable growth and opportunities for Zambians," Kabuswe commented.

The revival of Konkola Copper Mines (KCM) was another key development, marked by a new agreement with Vedanta Resources. Vedanta’s $1.3 billion US dollar investment, spread over five years, is expected to create more than 2,000 jobs.

Kabuswe confirmed that Vedanta has fulfilled its commitments, including securing bridge financing and implementing salary increases for employees.

Further boosting Zambia’s mining prospects, the dewatering of Shaft 28 at China Mine, an investment valued at $500 million US dollars, has revived a mine that had been inactive for more than two decades. This project is expected to generate approximately 3,000 jobs.

Additionally, the Ketumba Mining Project, a $600 million US dollar venture commissioned in August 2024, will create over 2,500 jobs, with production set to begin later this year.

While the mining sector faced challenges, including energy shortages caused by severe drought conditions, Kabuswe expressed optimism about ongoing energy sector interventions.

These efforts are expected to stabilize power supplies, ensuring uninterrupted mining operations in 2025.

Kabuswe concluded his briefing with optimism, stating that the achievements of 2024 have laid the groundwork for sustained growth and job creation in the coming years.

He emphasized the government’s commitment to leveraging Zambia’s vast mineral wealth for the benefit of its citizens.

“These investments and operational improvements demonstrate Zambia’s determination to build a thriving, inclusive mining sector that benefits all,” Kabuswe said.