New Copper Mining Investments Provide Hope for Zambia.

In July, a Silicon Valley start-up named KoBold Metals embarked on a $150 million exploration project in Chililabombwe, Zambia, aiming to discover high-quality copper reserves to meet the increasing demand for the metal. The company employs AI technology to guide drill placement. The support for this venture comes from prominent venture capitalists like Breakthrough Energy Ventures and Andreessen Horowitz, reflecting a trend of non-traditional mining investors addressing the global copper shortage driven by the energy transition 

While copper is crucial for Zambia's economy, most production now comes from North-Western province, not the once-thriving Copperbelt region. President Hakainde Hichilema plans to triple Zambia's copper production from 800,000 tonnes to 3 million tonnes annually by 2032, an ambitious goal requiring significant investments in exploration and reviving disused mines.

Zambia's Copperbelt shares rich copper resources with the Democratic Republic of Congo (DRC), but transportation challenges hinder it as a competitor. Zambia shares the same high-class copper deposits as the DRC, but its copper must travel 1,800km or more, predominately by truck, to ports such as Namibia’s Walvis Bay or Dar es Salaam.

Hichilema's administration aims to address infrastructure deficiencies, secure mining taxes, and promote cross-border economic cooperation with the DRC to enhance Zambia's copper value chain. Currently, the government is supporting a railway connection to Angola’s Lobito port that could reduce journey times from the Copperbelt, it has also stabilised mining taxes and signed a deal to establish a cross-border economic zone with the DRC.

However, the legacy of past mismanagement and debt issues adds complexity to these goals. Hichilema's government is working to restructure the $13 billion external debt. Overcoming the state takeovers of major Copperbelt mines and improving working conditions are essential steps to realizing the region's potential.

Additionally, environmental concerns, particularly emissions from copper mining and processing, are also significant. Hichilema's government is working to address these issues by bolstering Zambia’s environmental management agency and setting up a commission for better, decentralised monitoring of safety standards.

Zambia's success in reviving its copper industry hinges on attracting investments, stable governance, environmental improvements, and reliable supply. The country's historical legacy as a copper producer, coupled with the quality of its copper deposits, provides a basis for optimism, but challenges must first be navigated for the ambitious goals to be achieved.