Zambia aims to increase copper production to over 1 million tons this year, teaming with Gulf nations like the UAE and Saudi Arabia. International Resources Holding has raised output at the Mopani mine significantly and plans further increases. A recent MOU with Saudi Arabia indicates deeper collaboration, crucial for Zambia’s ambitious copper production goals as it navigates energy supply considerations.
Zambia is targeting a record copper output exceeding 1 million tons this year, bolstered by strengthened relations with the oil-rich Gulf nations, notably the United Arab Emirates and Saudi Arabia. According to Jito Kayumba, special assistant for finance and investment to Zambia’s president, production is anticipated to rise from 720,000 tons in 2024.
International Resources Holding RSC Ltd. of Abu Dhabi has notably increased output at the Mopani mine by 32% after acquiring a majority stake in late 2023. The company aims for a production target of 150,000 tons by 2025.
Kayumba, participating in the Future Minerals Forum, indicated that Zambia is poised for further agreements with Saudi Arabia following a recent memorandum of understanding aimed at collaboration in mineral resources. “The UAE is aggressively pursuing new investments and the MOU with Saudi Arabia tells you how serious the relationship is,” Kayumba noted.
Kayumba emphasized the significance of Gulf investors as pivotal partners in Zambia’s ambition to more than quadruple its copper production by the beginning of the next decade. He anticipates that Saudi Arabia will be among the first to invest, contingent upon the results of Zambia’s ongoing mapping study revealing viable development prospects.
Saudi Arabia has been actively engaging with foreign mining firms to establish a significant metals hub, making deals with companies like Barrick Gold Corp. and Vale SA. Furthermore, state-backed Manara Minerals Investment Co. is competing for a stake in First Quantum Minerals Ltd.’s Zambian operations but was recently outbid by Mitsui & Co.
Zambia, recognized as Africa’s second-largest copper producer after the Democratic Republic of Congo, has initiated discussions with several Saudi entities, including state miner Maaden and the Ministry of Industry and Mineral Resources, to foster closer collaboration in the mining sector.
Kayumba expressed confidence that power shortages would not impede Zambia’s copper production increase this year, citing the upcoming commissioning of solar plants and the surplus power from Tanzania as mitigating factors. He believes that substantial measures are in place to manage potential risks associated with mining operations.
Zambia’s efforts to boost copper production are particularly significant, as copper is a critical commodity in global markets, especially in the context of the transition toward renewable energy and electric vehicles, which rely heavily on copper. The collaboration with wealthier nations such as the United Arab Emirates and Saudi Arabia signifies a strategic partnership that may provide the necessary investments and expertise to enhance Zambia’s mining capabilities. The increasing competition among Gulf states to invest in mineral resources across Africa underscores the broader geopolitical interests at play.
In conclusion, Zambia is positioning itself to significantly increase its copper output through strategic partnerships with Gulf nations, primarily the United Arab Emirates and Saudi Arabia. With ambitious production goals and the backing of international investment firms, the nation aims to transform its mining landscape while addressing potential energy challenges through renewable sources. As these collaborations develop, Zambia may solidify its status as a key player in the global copper market.
Original Source: www.mining.com
