Zambia aims to boost copper production to over 1 million tons this year by forging partnerships with the UAE and Saudi Arabia. Following a recent agreement, further deals are anticipated to enhance investment in the mining sector, targeting a production output of 150,000 tons by 2025. Despite power supply concerns, the country expects to meet its production goals through developing solar energy and collaboration with Gulf investors.
Zambia has set an ambitious goal to increase its copper production to over 1 million tons this year, leveraging partnerships with wealthy Gulf nations like the United Arab Emirates and Saudi Arabia. According to Jito Kayumba, the special assistant for finance and investment to Zambia’s president, production could rise from approximately 720,000 tons in 2024.
International Resources Holding RSC Ltd. from Abu Dhabi has already enhanced its output by 32% at the Mopani mine after acquiring a majority stake in late 2023. Kayumba added that IRH is aiming for a production target of 150,000 tons by 2025.
During the Future Minerals Forum in Riyadh, Kayumba expressed optimism about securing further agreements with Saudi Arabia, following the recent signing of a memorandum of understanding to collaborate on mineral resources. He remarked on the seriousness of the partnership with the remark, “The UAE is aggressively pursuing new investments and the MOU with Saudi Arabia tells you how serious the relationship is.”
Gulf investors are deemed essential allies for Zambia as it strives to quadruple copper production by 2030. Kayumba anticipates that Saudi Arabia will quickly step in as an investor, particularly if Zambia’s ongoing exploration reveals profitable development prospects.
The Saudi kingdom has been actively engaging with international miners in recent years, including Barrick Gold Corp. from Canada and Vale SA from Brazil, as it aims to strengthen its own mining sector. Saudi state-backed Manara Minerals Investment Co. is currently interested in acquiring a stake in First Quantum Minerals Ltd.’s Zambian operations.
As Zambia is Africa’s second-largest copper producer, following the Democratic Republic of Congo, discussions have taken place regarding collaboration with Manara and Saudi Arabia’s mining authorities. Despite concerns over power shortages, Kayumba asserts that Zambia’s ability to increase copper output this year remains unaffected, thanks to impending solar power plants and surplus energy availability from neighboring Tanzania.
Kayumba concluded by highlighting the mitigating factors in place, stating, “There’s a lot of stuff now in place to mitigate the risks around this. Mining will not be hindered.”
Zambia is positioning itself as a significant player in the global copper market, intending to elevate its production by establishing stronger ties with financially robust nations in the Gulf region. This strategic partnership is seen as a means to not only bolster investment in the mining sector but also to enhance the country’s overall economic potential. As a vital mineral resource, copper plays an essential role in global industrial processes, making Zambia’s efforts increasingly relevant in the international market.
In summary, Zambia’s initiative to expand its copper production, supported by investments from Gulf nations such as the UAE and Saudi Arabia, signifies a pivotal step in enhancing its mining capabilities. The collaborative agreements and strategic partnerships are expected to not only increase production output but also attract further investment, solidifying Zambia’s position in the global copper industry. The country’s proactive measures regarding power supply ensure that mining operations can proceed without interruption, fostering a robust mining sector for the future.
Original Source: www.mining.com
