Zambia’s copper output increased by 12% in 2024, reaching 820,670 metric tons, propelled by recovery in major mines like Lumwana and KCM. Investments from Vedanta aim to rejuvenate KCM, while challenges such as electricity shortages persist. The government targets a production increase to 3 million tons annually within a decade.
LUSAKA (Reuters) – In 2024, Zambia’s copper production saw a notable increase of 12%, attributed to the resurgence of output from significant mining operations. The total output reached approximately 820,670 metric tons, advancing from 732,580 tons in the previous year, as reported by Mines Minister Paul Kabuswe.
Key mines such as Barrick Gold’s Lumwana and Vedanta Resources’ Konkola Copper Mines (KCM) contributed to this growth by ramping up activities. Additionally, Mopani Copper Mines, recently acquired by the United Arab Emirates-based International Resources Holding, also reported enhanced production, demonstrating the sector’s recovery.
Despite facing electricity challenges due to a severe drought impacting hydroelectric generation, production levels increased. As Africa’s second-largest copper producer, following the Democratic Republic of Congo, Zambia’s government aims to raise copper output to 3 million tons annually within the next decade.
Vedanta, led by Indian billionaire Anil Agarwal, has committed to investing approximately $1.3 billion into revitalizing KCM, which nearly faced collapse amid ownership disputes with Zambian authorities. Furthermore, Canadian companies, including Barrick and First Quantum Minerals, are progressively increasing their output, while U.S.-backed KoBold Metals plans to establish a $2 billion copper mine in Zambia.
Zambia’s economy significantly relies on copper mining, making it a crucial driver for economic growth. The country’s ambition to enhance copper production to 3 million metric tons annually aligns with its position as a leading producer in Africa. The mining sector faces ongoing challenges, including infrastructure deficits, power shortages, and competition from other nations, which underscores the importance of revitalizing investments in this industry for sustainable growth.
In summary, Zambia’s copper output increase of 12% in 2024 reflects a recovery in its mining sector, with strategic investments from significant companies. Despite challenges from electricity shortages and past ownership conflicts, the government remains committed to boosting production levels to support economic development. The collaborative efforts of international investors indicate a promising future for the copper industry in Zambia.
Original Source: www.marketscreener.com
