China to Invest $5 Billion in Zambia’s Mining Industry by 2031
China has announced plans to inject up to $5 billion into Zambia's mining industry by 2031, with the goal of boosting copper and cobalt production. The investments will be facilitated through a newly established entity, the Chinese Mining Enterprise Association in Zambia, as stated by the Zambian government on November 13, 2024.
The Chinese government, along with several major Chinese mining companies, launched this association to coordinate activities and enhance cooperation between the two countries. Zambian Mines and Minerals Development Minister Paul Kabuswe emphasized that the formation of the association would serve as a platform for Chinese mining firms to collaborate effectively with the Zambian government and investors.
"We have taken strategic steps to revamp the mining industry, particularly to increase copper output to achieve our target of 3 million metric tons per year by 2031. Organizing miners under this umbrella will help us realize this goal," Kabuswe said in a telephone interview.
In August 2024, Zambia launched the 'National Three Million Metric Tonnes Copper Production Strategy,' which aims to boost copper production, create jobs, and foster innovation in the domestic mining sector. According to Kabuswe, these initiatives are already yielding positive results, with copper production increasing by 6% year-on-year in the first half of 2024, reaching 350,000 metric tons.
Kabuswe also noted that companies previously entangled in legal disputes, such as Konkola Copper Mines and Mopani Copper Mines, have resumed operations. Additionally, firms that had considered leaving Zambia, such as First Quantum Minerals and Lumwana Mining, are now staying and expanding their production projects.
Furthermore, Zambia has launched a country-wide, high-resolution aerial geophysical survey aimed at stimulating mineral exploration and fostering new discoveries. As Africa's second-largest copper producer, Zambia is looking to capitalize on the global energy transition, which has led to increased demand for critical minerals like lithium, cobalt, and copper.
According to Zambia's Ministry of Finance and National Planning, copper production is projected to rise annually from 2025 onwards as legal and regulatory issues affecting the industry are resolved.
