Zambia Seeks Gulf Investments to Enhance Copper Production

Zambia aims to boost copper production to over 1 million tons this year with support from the UAE and Saudi Arabia. International Resources Holding has increased output at a key mine and set new production targets. Collaboration agreements with Saudi Arabia are expected to enhance mineral resource management. Kayumba affirms that power shortages will not hinder production growth due to upcoming solar initiatives and regional power supplies.

Zambia is currently working to enhance its copper production, aiming to surpass 1 million tons this year with increased partnerships with the United Arab Emirates (UAE) and Saudi Arabia. Jito Kayumba, the special assistant for finance and investment to Zambia’s president, has indicated that output is expected to rise from approximately 720,000 tons in 2024.

International Resources Holding RSC Ltd. (IRH) has already boosted production by 32% at the Mopani mine after winning a bid for a majority stake late in 2023. IRH is now targeting a significant output of 150,000 tons by 2025, showcasing their commitment to enhancing mining operations in Zambia.

During the Future Minerals Forum, Kayumba expressed optimism for more agreements with Saudi Arabia following the recent memorandum of understanding aimed at collaborative mineral resource management. “The UAE is aggressively pursuing new investments…” he noted, emphasizing the strengthening relationship between Zambia and Gulf nations.

Gulf investors are expected to play a vital role in Zambia’s ambitious plans to increase copper output significantly by the early part of the next decade. Kayumba is particularly hopeful that Saudi investors will discuss viable development opportunities arising from ongoing geological studies in the region.

Saudi Arabia, seeking to become a prominent mining hub, has been engaging with international mining companies and showing interest in Zambian mineral assets. Recent discussions have been held between Zambia and key Saudi entities, including Manara and the Ministry of Industry and Mineral Resources, for potential collaborations.

Kayumba believes that concerns over power shortages will not impede the anticipated rise in copper production. He pointed out that new solar energy installations are expected to be operational soon, supported by an existing power surplus in neighboring Tanzania. “There’s a lot of stuff now in place to mitigate the risks around this,” he assured, indicating solid preparations for the mining sector.

Zambia, as Africa’s second-largest copper producer following the Democratic Republic of Congo, is focusing on enhancing its copper output through international partnerships. The country is exploring collaboration opportunities with wealthier Gulf nations, particularly the UAE and Saudi Arabia, to achieve its production goals. The ongoing interest from these Gulf countries highlights Zambia’s role in the global mining landscape, amid various agreements and investments aimed at increasing mineral extraction and boosting economic growth.

Zambia is strategically aligning with the United Arab Emirates and Saudi Arabia to significantly increase copper production, targeting to exceed 1 million tons this year. The involvement of Gulf investors in Zambia’s mining sector is crucial for realizing this goal, particularly in light of recent partnerships and investments. With ongoing geological studies and preparations for power supply improvements, Zambia appears poised for substantial growth in its copper industry in the coming years.

Original Source: www.mining.com