New Chinese mining body to invest $5 bil in Zambia to boost copper production

China will inject up to $5 billion into Zambia's copper industry by 2031 to increase the production of copper and cobalt, with the investment made through a new body, the Chinese Mining Enterprise Association in Zambia, the Zambian government said in a statement Nov. 13.

The Chinese government and several major Chinese mining companies had launched the association to coordinate their activities in Zambia and enhance cooperation between the two countries, it added.

In August 2024, the Zambian government launched the 'National Three Million Metric Tonnes Copper Production Strategy,' which aimed to increase copper production, employment and innovation in the domestic mining industry.

"The formation of this association will serve as a platform for Chinese mining companies operating in the country to harness cooperation between the government and the investors," Zambian Mines and Minerals Development minister Paul Kabuswe said in a telephone interview.

"We have taken strategic steps already to revamp the mining industry especially to increase copper output to achieve our 3 million mt/year target by 2031 and... [organizing] miners under this umbrella will help us deliver our dream," he added.

The minister said that the steps taken had started to bear fruit, noting that copper production hit 350,000 mt for the first half of 2024, increasing 6% year on year.

He said the steps included the re-opening of mining companies that were locked up in legal disputes, such as Konkola Copper Mines and Mopani Copper Mines, while companies that had planned to leave Zambia, such as First Quantum Minerals and Lumwana, had stayed and were already implementing production expansion projects.

In addition, he noted that Zambia had launched a country-wide high-resolution aerial geophysical survey and would stimulate and encourage mineral exploration for more discoveries.

As Africa's second-largest copper producer, Zambia is seeking to capitalize on the global energy transition which has generated higher demand for critical minerals such as lithium, cobalt and copper.

According to Zambia's Ministry of Finance and National Planning, copper production is projected to rise each year from 2025 due to the resolution of legal and regulatory issues hindering activity in the industry.

Platts, part of S&P Global Commodity Insights, assessed Chinese copper import premiums at $45/mt plus London Metal Exchange cash, CIF China, Nov. 13, for LME-registered normal brands of electrolytically refined cathode, up $8/mt from Nov. 6.

The top ER brands differential was assessed at $5/mt and the solvent-extracted/electrowon differential was assessed at minus $5/mt.