By Kennedy Mupeseni –

AMID likely drop in the copper production for 2022, the foundation for a robust mining growth has been laid for a better 2023 and beyond.
In the first half of 2022, production dropped by 7.4 per to 364,089 tonnes, according to figures by the Zambia Chamber of Mines.
During that time, the metal’s price on the London Metal Exchange (LME) was down by 20 per cent to $7,718 a tonne, well below the Ministry of Finance and National Planning’s projection of $9,595 for the year.
Later, the Ministry of Finance and National Planning forecast that the output would grow to 833,480 tonnes from 802,967 tonnes in 2021.
In the medium-term budget plan, the government targets production of 986,902 tonnes by 2025.
In June last year, copper export figures from Zambia Statistics Agency (Zamstat) showed that Zambia’s copper export volumes fell 8.4 per cent for that month as compared to the month earlier.
Recent data released by the agency indicates that the cumulative volume of refined copper exported from January to December 2022 was 898, 300 tonnes while that of 2021 for the same period was 903,400 representing a 0.6 per cent decrease.
The year, however, saw increased investor interest in the country with existing mining operations announcing additional investments in their expansion.
In December 2022, the United States (US)’s Department of State released a signed Memorandum of Understanding (MoU) with the Democratic Republic of Congo (DRC) and Zambia on electric vehicle battery value chains.
The document was signed on December13, 2022, during the Africa Leaders Summit and states DRC and Zambia’s involvement in the production of Electric Vehicle batteries witnessed by President Hakainde Hichilema.
The data shows that the DRC currently holds a majority of the world’s cobalt reserves at around 70 per cent with Zambia coming in second in Africa.
It should be noted that Zambia is also the world’s sixth largest copper producer, hence the MoU entrusts the two African countries to work on a value chain that covers mining all the way to assembly.
These projects will be operational within Africa and will enable the private sector to also be invited to participate in each step of this venture.
Analysts say the US really needs this as it got left far behind in the EV race in that China is producing 56 per cent of the world’s supply of EV batteries with Korea coming in second at 26 per cent and Japan with 10 per cent.
This means that 92 per cent of the world’s supply of EV batteries are emanating from Asia alone.
The other significant highlight was the announcement by Canadian mining global giant, First Quantum Minerals (FQM) to make an historical investment of around US$1.35 billion in mining expansion which saw the establishment of the largest nickel mine in Africa at Kalumbila tenement.
The other turning point in the mining industry for 2022 was the announcement made by KoBold Metals, a coalition of billionaires including Bill Gates and Jeff Bezos, committing US$150 million to develop the Ming’omba copper-cobalt mine in Chililabombwe.
This Chilibombwe cobalt and copper tenement is believed to be of the highest grade in the region which if developed would help the country attain its cherished target of attaining three million target in a decade which appears elusive.
Mines and Mineral Development Minister Paul Kabuswe is upbeat that most targets in the mining sector will be achieved.
Mr Kabuswe states that mining giants are eying Zambian minerals adding that after his Ministry reopened the Mining Cadastre Department 400 local and international companies have applied for prospecting mining licences.
“Canadian mining giant, Ivanhoe Mines has expressed interest to extending its Democratic Republic of Congo (DRC) operations into Zambia, the company is developing the Kamoa-Kakula copper mining complex in the DRC and the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa,” Mr Kabuswe says.
He says the coming up of Ming’omba cobalt and copper development in Chililabombwe and the FQM injection of more than US$1.3 billion in mining expansion in Zambia among others will ‘reengineer’ the mining sector into a growth never seen before.
On the much-talked-about issues surrounding Konkola Copper Mine (KCM) and Mopani Copper Mine (MCM), Mr Kabuswe maintains that Government is keen to come out with a better deal from the on-going negotiations with Vedanta Resources regarding KCM out-of-court settlement.
It is also keen on resolving the Mopani cash injection issue.
Other measures the Government is working on include mapping the entire country for minerals as well as coming up with a policy to support a robust mining industry and catch up with the African leading copper producer, DRC.
Mr Kabuswe says the Government has been working on measures to ensure that the entire country is mapped for minerals to fit in the three million tonnes of copper production target.
He also says the Government has finalised the new mining policy which will facilitate the establishment of a mineral authority and legalising illegal mining operations in the country.
“The new mining policy has been funded and completed, we are now in an implementation phase ,we want to reorganise the industry which was ruined, more cooperatives are being formed to ensure that all those doing illegal mining formalise, our approach is not to go with guns but encourage people doing illegal mining to legalise,” Mr Kabuswe says.
With this overwhelming historical confidence in the mining sector, the Zambia Chamber of Mines (ZCM) is bullish about a rebound in mining production.
ZCM chief executive officer Sokwani Chilembo says 2023 will be a turnaround year for the mining industry because of the projects coming on stream and a stable mining policy.
Mr Chilembo says although the country may not achieve the projected copper production for 2022, diversity in mining production will boost revenue from the mines this year.
“The country will achieve the much-needed diversification because of the Nickel Mine coming on stream and other mining projects like Kagem Mine’s Kamakanga mine and other projects in the course of this year,” Mr Chilembo says.
The chamber is looking forward to a turnaround in mining activities and wants issues to do with KCM and Mopani concluded soonest.
Mr Chilembo says the coming on line of the Nickel mine will provide the much-needed boost for the Treasury apart from creating more jobs for the local people.
There is a need to encourage more players in exploration to boost production beyond copper.
Mr Chilembo also acknowledges that despite an improved mining policy environment, the mining industry faced a lot of challenges in 2022 emanating from heavy rainfall that cut supply chain logistics especially in South Africa.
“The mines faced operational challenges due to heavy rainfall especially in KwaZulu natal that cut supply as well as raw grade at Kansanshi mine among other mines,” he says.
Mr Chilembo urges stakeholders to support the country’s quest to ramp up copper production to an all-time high of three million per tonne in the next decade.
Mining is the major driver of economic activities in Zambia, accounting for about 12 per cent of the Gross Domestic Product (GDP) and more than 70 per cent of the country’s export earnings.
The sector employs about 59,371 people, making it fifth on the country’s top sector employment index.
Thus, a vibrant mining industry is more desirable to help stabilise the country‘s economy and create indirect and direct jobs.