Zambian mining gets huge investment boost under Hichilema — $7bn in two years

Zambian President Hakainde Hichilema told the Investing in African Mining Indaba in Cape Town on Monday that foreign mining houses had invested almost $7-billion into several mining projects in Zambia over the past two years. These comprised new and expanded enterprises. 

Hichilema noted that when he had addressed the indaba for the first time in 2022, shortly after taking office, he had made the case that “now is the time” to invest in Zambian mining. 

“Since then a number of investments have been made and are already bearing fruit,” he said in a video address on the first day of the event, which was also addressed in person by President Cyril Ramaphosa. 

Hichilema said:

• Enterprise Nickel Mine, Africa’s largest nickel producer, has come online following a $100-million investment from first quantum minerals (FQM);


• First Quantum Minerals is also making strong progress with the s3 expansion of the Kansanshi mine and smelter, investing more than $1-billion and boosting downstream beneficiation;


• Moxico Resources started production at its Mimbula mining project in March 2023, producing 6,000 tonnes of copper in the first nine months of operations;


• Kobold Metals, which uses pioneering artificial intelligence technology, has made significant progress in defining the ore body at its Mingomba project, following a$150-million investment in 2022;


• Barrick Gold Corporation has doubled down on its commitment with a$2-billion investment to expand its Lumwana mine into a “super-pit” capable of producing 240,000 tonnes of copper per year when it comes online in 2028;


• The China Nonferrous Mining Corporation has pledged a $1.3-billion investment over the next five years for its various operations in Zambia, including $600-million for the reopening of shaft 28 at the Luanshya copper mines, on the copper belt; and


• International Resources Holding and Vedanta Resources have invested a combined $2.3-billion into Mopani Mine and Konkola Copper Mines, helping Zambia to “make substantial progress in resolving the legacy issues”, Hichilema said, referring to the paralysing disputes which the foreign investors in these two “national assets” had had with Lungu.

The Investing in African Mining Indaba began in Cape Town on 5 February 2024. Mining executives, investors and government ministers arrived for the continent's biggest gathering of one of its most vital industries. (Photo: Dwayne Senior / Bloomberg via Getty Images)

• The $2.2-billion Kafue Gorge lower power station;


• The UK-Zambia green growth compact, opening up $3-billion in private-sector and government funding for renewable energy projects across Zambia;


• The Copperbelt Energy Company $200-million green bond issued, to finance solar, wind and other renewable energy projects;


• Opening up the energy market to private-sector players through the open-access regime including facilitating off-taker guarantee financing, allowing mining companies to finance captive power to fuel their expansion projects; and


• Lining up infrastructure projects such as the Zambia-Lobito rail line and upgrading the Tazara railway line to provide a smoother route to markets for mining operations.