First Quantum Minerals -Production Starts at Africa’s Biggest Nickel Mine

First Quantum Minerals, a global copper company with reserves of nickel, gold, and cobalt, has officially commenced production on their nickel mine situated in the North-western Province of Zambia.

The Canadian mineral firm is one of the world’s top 10 copper producers and has been partly situated in Zambia since 2005, owning various mines in the country, including Kansanshi which produces more copper than any other mine in Africa.

However, it is the Enterprise nickel mine that First Quantum is currently focussing on, the sediment-hosted nickel-sulphide deposit has been estimated to hold 40 million tonnes of ore and contain 431,000 tonnes of nickel.

Yesterday, on July 26, mining output started on the mine and a new concentrator, set to increase the efficiency of mineral processing, is expected to be commissioned early next month by the Minister of Mines and Minerals Development Paul Kabuswe.

 The mine is expected to upscale annual production to nearly 30,000 tonnes of nickel over the next two years, according to First Quantum’s project manager Axel Köttgen.

This increase would make Zambia the largest producer of the metals needed to manufacture batteries for electrical vehicles, a prospect which aligns with the government’s intention to become a major trader in the emerging market of EV batteries.

Internationally, critical supplies of battery minerals are being pursued by countries such as China and the US. Nickel, as a central component of most EV batteries, holds a specific importance in this global rush to secure battery metals.

In addition to this recent investment, First Quantum approved a $1.25 billion expansion project for their Kansanshi copper mine in Zambia last year. A decision the company stated was provoked by a “renewed confidence” in Zambia's investment climate due to the work of the current government.

First Quantum’s increased funding for Zambian assets follows a larger trend of investment into the country, with companies regularly publicising developments into the Zambian economy, ultimately evidencing the restored level of trust in the stability of the nation’s economy under President Hakainde Hichilema’s administration.