THE year 2023 is historic for Zambia’s mining sector in that this is the year when the various challenges were unlocked.
Despite the year having been a turbulent one in terms of mining performance where the country is expected to field copper production of below 700,000 tonnes in 14 years, things are looking up because of the measures the government has put in place.
A number of developments and policy measures will buttress the mining sector for greatness.
After more than two years of disinvestments and dispute over the ownership of Konkola Copper Mines (KCM), the mine was handed back to Vedanta Resources with few issues remaining to be resolved before the Indian miner pumps in capital to rejuvenate production.
Vedanta has pledged that once officially handed back the mine, US$1 billion will be invested in mine expansion which will see copper production climb to 300,000 tonnes from under 100,000 tonnes per year which is a glimmer of hope for the sector.
Equally, the Government through ZCCM Investment Holdings (ZCCM-IH) found an investor for Mopani Copper Mines (MCM) another one of the big five that is expected to contribute to enhanced copper production.
ZCCM-IH picked International Resources Holding RSC Limited (IRH), an Abu Dhabi based multinational as the preferred Strategic Equity Partner in Mopani.
IRH will invest a total of US$1.1 billion into MCM to fund MCM’s mining project plan, US$620 million will be provided in the form of new equity capital in return for a 51 per cent stake in Mopani, which will be used for Mopani’s capital projects, and to stabilise the working capital position of the business.
Others will be US$400 million to go towards shareholder loan to MCM by way of novation of the Glencore debt that will be used as part of the consideration to settle the original Glencore transaction debt of US$1.5 billion plus interest as well as Glencore’s super senior procured letters of credit.

The investor has indicated that further capital may be made available to Mopani as shareholder loans, if required, based on the future working capital requirements of the business.
In this case ZCCM-IH will retain a 49 per cent equity stake in Mopani assets thereby answering to the cries of stakeholders who have been pushing for greater stake in the mining sector.
Similarly, it was in the year under review when KoBold Metals Zambia, a United States mining firm exploring for copper at Zambia’s Mingomba in Chililabombwe pumped in US$150 million as initial investments in its Artificial Intelligence (AI) aided exploration venture.
In terms of share distribution, the US investor has a majority interest of 52 per cent alongside joint venture partners EMR Capital which holds 28 per cent with ZCCM-IH owning 20 per cent.
KoBold is already deploying AI and other geo-science capabilities as it scouts for copper and is upbeat about high copper grades being found.
CNMC Luanshya Copper Mines Plc, a Chinese conglomerate announced the reopening of shaft 28 after being closed for 22 years with a pledged investment outlay of about US$500 million.
Interestingly, the company projects production of 40, 000 tonnes of copper to be added to the current 50, 000 tonnes produced annually.
KoBold Metals Zambia, a United States mining firm exploring for copper at Zambia’s Mingomba in Chililabombwe pumped in US$150 million as initial investments in its Artificial Intelligence (AI) added exploration venture.
In terms of share distribution, the US investor has a majority interest of 52 per cent alongside joint venture partners EMR Capital which holds 28 per cent with ZCCM-IH owning 20 per cent respectively.
KoBold is already deploying AI and other geo-science capabilities as it scouts for copper and is upbeat high copper grades will be found.
Barrick Gold Corporation, the owners of Lumwana Mine also announced the commitment to invest a record US$2 billion in mine expansion which will see the life of the mine extended to 50 years following the discovery of more copper deposits.
Another ground-breaking event in 2023 was the commencement of production of concentrate at First Quantum Minerals’ new Enterprise nickel mine in Kalumbila, North- Western Province.
Once in full production, the Enterprise mine will be the largest producer of the strategic metal in Africa.
Nickel, like lithium, cobalt, and copper, is an essential component in the batteries required for the new era of ‘green’ vehicles.
The development of the mine and plant resumed when FQM made an additional US$100 million investment to finalise the project in the light of improved market conditions.
The investment is important because it has helped the country achieve its low awaited mineral diversification agenda.
With the increased discovery of various minerals by the community resulting in expanded informal mining in the country, Mines and Mineral Development Minister Paul Kabuswe during a media briefing to review the year 2023 said his Ministry gave out licences to 126 gold mining cooperatives and 65 cooperatives in other minerals.
Another interesting feature is the announced sites for construction of Gold Marketing Centres in seven districts namely Mumbwa, Rufunsa, Lusangazi, Vubwi, Petauke, Chisamba and Chibombo.
In addition, the construction of infrastructure for Gold Marketing Centres in Mumbwa and Rufunsa are at procurement stage.
The full roll out of these gold infrastructure will have a turnaround effect on the economy as gold prices are in a surging mode.
Apart from the provision of fiscal incentives to the mining sector which has set pace for the country’s desire to reach an ambitious target of three million tonnes per year in 2031 from the current average of 800,000, the government initiated more policy reforms.
During the year 2023, the Government continued with the reform process resulting in the formulation of the draft legal framework for the Minerals Regulation Commission, according to Mr Kabuswe.
With all these and many more innovative policies and measures, the future for the mining sector is bright and, all things being equal, the country is likely to ramp up copper production to an-all-time high of 1.5 million as per industry projections for 2024.