Zambia shines at African Mining Indaba
Zambia demonstrated its return to industrial strength at this year’s African Mining Indaba, reminding Africa of the resources it has to offer amid a surge of foreign investment deals.
The reputation of Zambian mining declined under the leadership of former President Edgar Lungu, thanks to uncertainty about taxation, resource nationalism and corruption widely believed to be endemic. Zambia did not receive a spotlight at the Indabas of those years.
Since his UPND Party’s election to power in August 2021, President Hakainde Hichilema has done his utmost in his 18 months in charge to kickstart ailing industry in Zambia. Mining has been re-evaluated by his cabinet, and is now a crown jewel in the reversal of Zambia’s previously waning fortunes.
As a successful businessman before entering the political scene, President Hichilema has recognised the immediate value of foreign investment in bringing expertise, economic growth and improved infrastructure to the people of Zambia. Previously-unseen levels of interest in Zambian mining opportunities at the 2022 and 2023 Indabas are indicators of Zambia’s upward trajectory.
Leaves of Zambian copper awaiting transport. (Mining for Zambia)
Speaking on Zambia’s global image, Neal Froneman, CEO of Sibanye-Stillwater, a precious metals multinational giant, commented, “Zambia is looking very good […] We like Zambia as a destination. There are some great copper assets in Zambia.” When asked about Mr. Hichilema’s role in Zambia’s new look, he added, “President Hichilema is a professional; he’s doing exactly the right things. His focus is strongly focused on commercial realities and is just a breath of fresh air”.
Froneman’s mention of copper is astute. In the transition to greener energy, copper is a critical metal. Zambia was the second largest African producer of copper in 2021, and President Hichilema has seized this opportunity to propel Zambian development with both hands. At last year’s Indaba, Zambia made headlines when the copper producer First Quantum metals announced the outright largest investment in Zambia in a decade, in the form of two projects totalling to $1.35 billion.
Other mining directors at the Indaba acknowledged the role copper has to play in Zambia’s growing prosperity, including Modern Corporate Solutions’ director, Peter Major: “The people there really want mining, the government is quite accessible, there’s no BEE, the legislation is clear, and they have a proper mining cadastre”.
Zambia’s mining cadastre has been a driving factor in the sector’s growth. The online portal offers information freely accessible to the public about which companies have mining permits in which regions, and is considered part of Zambia’s campaign for an informed public united against corruption.
One of the many maps available on the Zambian mining cadastre portal. (MMMD)
Zambia’s growing mining relations with the DRC are also an indicator of UPND’s ambitions. In 2021, the DRC was the world’s largest cobalt producer, mining more than 70% of the world’s cobalt, and it consistently tops the African copper mining table. Marna Cloete, president at Ivanhoe Mines, which has assets in the DRC, was impressed by the improvement in relations: “The president comes from a business background […] He’s actively pursuing investment. He’s a very dynamic person. We do engage with Zambia on infrastructure because we share a border and we have seen vast improvement in terms of relations with the Zambian government”.
Ivanhoe is currently in negotiations to establish a border crossing for mining products. In January 2023, the United States announced a Memorandum of Understanding between Zambia and the DRC on electric vehicle battery value chains. The U.S. Department of State described the memorandum as inviting “open and transparent investment to build value-added and sustainable industry in Africa and creating a just energy transition for workers and local communities”. The U.S.’s role in the partnership will be to offer technical knowledge, financing and private sector investment opportunities.
The Memorandum of Understanding was announced one month after the U.S.-Africa Leaders Summit. While in Washington DC, President Hichilema presented his ‘Green Energy Mining Deal’ lecture, in which he announced that Zambia would reset its relationship with China and the USA. By the end of the trip, Zambia had secured its first major direct American investment in over three decades.
President Hichilema’s official photograph is taken with President Biden and the First Lady after the Summit. (ZNBC)
Present at the Indaba was Paul Kabuswe, the Minister of Mines and Minerals Development. By the conclusion of the Indaba, Mr. Kabuswe was pleased to unveil a timeline for the Mopani Copper Mines. 10 suitors for the mine and smelter complex had come forward with investment plans, one of whom would be selected for partnership at Mopani by the end of March. The Mopani investment project is proof of Zambia’s intent to mine three million tonnes of copper annually by 2032.