World Report

Privatisation has revived the fortunes of the mining industry, which is expanding beyond its traditional area

The surge in output will be boosted further by new projects coming on stream over the next couple of years

he mining industry has been the economic backbone of Zambia since serious exploitation of the Copperbelt deposits commenced more than 70 years ago. Since then, Zambia has become recognised as one of the world’s major producers of copper and cobalt, but the sector suffered a major and prolonged setback after the mines were nationalised in the mid-1970s. Over the next 25 years, levels of production plunged from 750,000 metric tons per year to 250,000 metric tons.

Since January 2000, the sector has undergone almost complete privatisation and the decline has been reversed. Production levels are rising again and mines are reopening now that foreign investment has been attracted back to the industry by strong international copper prices and the government’s efforts to create a favourable business climate.

Kaunda R. Lembalemba, Minister of Mines and Mineral Development, anticipates a brighter future of higher production and employment, and increasing revenue from exports. “The privatisation process has already led to significant inflow of investment to the mining sector and a change of fortunes is confidently predicted for the industry within the next two to three years,” the Minister says.

“With a total mineral resource of at least two billion tons on the Copperbelt alone, there is no doubt that copper and cobalt production will soon begin a dramatic upward trend.”

Kaunda R. Lembalemba
Minister of Mines & Mineral Development

‘We are optimistic more deposits will be found throughout the country’

Recent important developments include the securing of strategic partners for Konkola Copper Mines and the former Roan Antelope Mining Corporation of Zambia (RAMCOZ), and two major projects outside the traditional Copperbelt. A 25-year mining licence has been granted to Australia’s Equinox Minerals for the Lumwana copper and gold mine, one of the world’s largest undeveloped copper resources, while the new Kansanshi copper mine being built by Canada’s First Quantum Minerals is expected to start production early next year. Both projects are in what is now being referred to as the New Northwest Copperbelt.

Mr Lembalemba predicts that with all these projects on board copper production – currently around 316,000 tons – could exceed 750,000 tons in the next three to five years. He also points out that, with little exploration activity having taken place during the period of nationalisation, much of Zambia’s mineral potential remains unexplored.
“A lot of people are coming to invest because of the enabling environment that we have created,” he says. “This, coupled with rising copper prices, means that the mining companies are not satisfied just to continue with current production levels.

“They want to expand, so they are putting in more investment. We also have companies carrying out exploration work and we are optimistic they will find more deposits throughout the country.”