Zambia
Overview
Overview
The African copper belt spanning Zambia and the Democratic Republic of Congo (DRC) is an important source of global copper supply. Zambia has historically been a supplier of copper to the global economy with major mining companies such as First Quantum Minerals, Barrick Gold, and Glencore active in the country. Chinese companies have also emerged as major players in the Zambian mining sector through the acquisition of shares in many major mining projects in the country.
As Africa’s second largest producer of copper, mining accounts for a significant concentration of economic production and foreign exchange earnings with copper accounting for over 80% of Zambia’s export earnings. In Zambia, a mostly mining-friendly government has encouraged mining companies to invest in expansion and development projects.
To this end, Zambia has received significant investment from foreign mining companies due its favourable geology, relative political and macroeconomic stability, and progressive privatisation of state-owned mines. In light of these favourable qualities, there are several substantial expansion projects already underway in the country.
Key green minerals
Major mining
projects
Value-addition initiatives
Value-addition initiatives
Due to high operating costs caused by a lack of reliable electricity and sufficient transport infrastructure, Zambia has found it difficult to increase the competitiveness of its copper sector. One way to overcome this challenge would be to cluster production through special economic zones or industrial parks. For example, Zambia and the DRC have recently concluded a deal for the creation of special economic zone to build a battery supply chain. The project will be implemented in two special economic zones in a unique cross-border configuration. This is because the African copper belt runs through both countries and cobalt, another mineral critical for renewable energy technologies, is obtained as a by-product of copper production. With the bilateral agreement in place, both countries intend to scale-up their production and locate the processing of minerals closer to the sites of extraction.
