Prospect secures mining licenses for its Mumbezhi copper project in Zambia

Australia-listed mineral explorer and developer Prospect Resources has secured two mining licenses covering the entire land holding at its Mumbezhi copper project in northwestern Zambia for an initial period of 25 years.

In a statement released March 17, Prospect said the mining licenses provide for the full-scale commercial mining, processing and export of minerals from Mumbezhi.

According to Prospect, the licenses, which are renewable for successive 25-year periods, represent a significant de-risking of the project and provide "a strong legal and permitting framework" from which to advance project development and financing.

The terms of the licenses will allow the company to conduct a thorough survey of the property area and upgrade the project to build on the initial planned scoping studies, if necessary, it said. The licenses also qualify the company for capital allowances, royalty structures and VAT benefits available under Zambia's mining tax regime.

"With the LMLs [large-scale mining licenses] in place, Mumbezhi transitions into a fully permitted asset, opening the path for further resource expansion, future mine development, production planning and strategic financing discussions," said Prospect's managing director and CEO Sam Hosack.

"This grant provides the long-term security and regulatory framework needed to unlock the full economic potential of the Project and contribute to Zambia's broader resource-led industrialisation agenda."

The announcement comes shortly after Prospect said it had identified 514,600 mt of contained copper in a maiden mineral resource estimate for the project.

The Mumbezhi project tenement is 100%-owned by Osprey Resources, the Zambia-based subsidiary of Prospect Resources, in which the company holds an 85% interest.

Mumbezhi is located in the Zambian Copper Belt, near several world-class copper mines including First Quantum Minerals' Sentinel and Kansanshi mines and Barrick's Lumwana mine.

Zambia is Africa's second-largest copper producer after the Democratic Republic of the Congo and is also known for its cobalt deposits.

In addition to the Mumbezhi project, Prospect Resources is developing the Omaruru lithium project in Namibia and Step Aside lithium project in Zimbabwe.

Platts, part of S&P Global Commodities Insights, assessed CIF China clean copper concentrate treatment and refining charges at minus $16.6/mt and minus 1.66 cent/lb, respectively, March 17, up $2.50/mt and 0.25 cent/lb from March 14.