By JAMES KUNDA –

GLOBAL ratings agency, Moody’s Investors Service, has projected growth in Zambia’s mining sector following the planned investment of US$1.1 million into expanded operations by Mopani Copper Mines (MCM).
Moody’s is optimistic that with the investment by Swiss conglomerate Glencore, which owns a 75 per cent stake in Mopani, the country will mint enhanced copper production which will translate into increased Government revenues.
With Glencore’s investment, Zambia’s total copper production has been earmarked to be at 802,038 tonnes by 2018 as compared to 742,037 tonnes without the Swiss firm’s input.
This is according to a research paper by Moody’s vice-president, senior analyst and lead sovereign analyst for Zambia, Zuzana Brixiova.
The research dubbed ‘Zambia’s growth prospects improve with Glencore’s investment in Mopani Mine’, predicted that the investment by Glencore would contribute to fiscal consolidation and return public finances to a sustainable trajectory.
“Moody’s projects that Glencore’s planned investment will contribute to bringing Zambia’s real Gross Domestic Product (GDP) growth to five per cent or more in 2018 by adding up to 0.5 per cent of GDP that year.
“The investment is credit positive for Zambia because it will help drive growth. Glencore’s decision to invest now, when Zambia’s economy faces challenges, sends a positive signal of investor confidence,” Ms Brixiova said.
She said Glencore’s investment would reduce production costs and increase the efficiency and profitability of Mopani’s copper mine shafts.
This, Ms Brixiova said, would allow the mine to ramp up production and take advantage of the potential for a gradual recovery in copper prices over the coming years.
“The investment marks a positive turnaround for the mine and Zambia’s entire copper sector, which has been stagnating following a sharp decline in copper prices and severe electricity shortages since 2015,” she said.
Glencore acquired the major stake in Mopani in 2000 and, since then, the mining giant has invested $3 billion to upgrade the mine with production helping finance investment in transport infrastructure and social programmes.