China Nonferrous Mining Corporation Pledges $1.5 Billion Investment in Zambia’s Copper Sector
China Nonferrous Mining Corporation (CNMC) has committed to investing over $1.5 billion in Zambia to boost copper production, as part of a broader effort to support the country in reaching its goal of 3 million tonnes of copper output annually by 2031. Projects under this investment include the redevelopment of Shaft 28 in Luanshya and expansion at Chambishi Copper Mines. President Hakainde Hichilema emphasized the importance of capital, technology, and management enhancements for economic growth and job creation in the sector.
Of the $1.5 billion, CNMC will allocate $625 million to Chambishi Copper Mines and $650 million for the redevelopment of Shaft 28 and additional smaller shafts. Furthermore, $200 million will be invested in a new small mine in Chambishi, and an additional $100 million will be directed towards the expansion of the Zambia China Cooperation Multi Facility Economic Zone (ZCCZ), with a target to create 5,000 new jobs. Dewatering operations at Shaft 28 have also been underway since April, with over 29.3 million cubic meters of water removed to date, using nine advanced submerged pumps. This phase is expected to conclude by the end of next year.
The Chinese Mining Enterprises Association of Zambia (CMEAZ) was recently launched, signaling an increased commitment to expanding Chinese investments in Zambia's mining sector. The association aims to raise investments from $3.5 billion to $5 billion within the next five years, aligning with Zambia's copper production targets. According to CMEAZ Chairperson Li Zhanyan, Chinese enterprises currently contribute around $300 million in tax revenue annually and employ approximately 15,000 workers in Zambia. The Chinese Ambassador to Zambia, Han Jing, underscored the significance of legal collaboration between Chinese investors and Zambian authorities to ensure sustainable mining growth.
According to Zambia's finance ministry, copper production in August increased by 16.6% month-on-month and 7.6% year-on-year, reaching 70,244 tonnes. Cumulative output from January to August rose by 2.7% compared to the previous year, driven by gains recorded in March and August. In contrast, copper production in 2023 had declined by 8.5% year-on-year to 697,790 tonnes, with a recovery forecast for 2024, though ongoing power shortages linked to drought conditions have led the IMF to revise Zambia's GDP growth forecast to 1.2% for this year.
