African Continent's Key Minerals: Companies Including Chinese Enterprises Increase Investment in Zambia's Copper Mines
Vedanta Group to Invest $1.5 Billion to Support Zambia's Thriving Copper Mining Industry
¬ Vedanta Group has established CopperTech Metals, a company responsible for managing its Konkola Copper Mine in Zambia
¬ The company plans to invest $1.5 billion, aiming to increase production to 300,000 tons by 2031
¬ Zambia aims to increase the country's copper production to 3 million tons by 2031
Vedanta Resources announced on November 6 the establishment of CopperTech Metals Inc., a new subsidiary responsible for operating its Konkola Copper Mine in Zambia. As part of this restructuring, the company stated that it will add an additional investment of $1.5 billion, aiming to increase production to 300,000 tons by 2031. This move aligns with the overall growth investment trend in Zambia's copper mining industry in recent years.
Zambia aims to increase the country's copper production from 821,670 tons in 2024 to 3 million tons by 2031. Several mining companies have announced expansion projects to support this goal. Barrick Gold Corporation of Canada plans to invest $2 billion to double the output of its Lumwana Copper Mine; China's Jincheng Mining (JCHX) plans to invest $300 million to extend the life of its Lubambe Copper Mine.
In the Konkola Copper Mine, Vedanta Group plans to invest $1.5 billion, further increasing the total investment in recent years to $3 billion. These investments aim to increase capacity and support Zambia's long-term growth strategy, given the rising demand for copper due to the global energy transition and the expansion of the artificial intelligence industry.
According to data from the International Energy Agency (IEA), the copper supply gap could reach 30% by 2035. Coupled with recent supply chain disruptions, these trends make newly built and expanded copper mines key contributors to future global copper supply - provided that the announced investments are implemented.
Although Vedanta is working to reduce debt and improve its balance sheet, the company has not yet detailed its specific plans for funding the new investment project at the Konkola Copper Mine. Currently, the company expects the copper production at the Konkola Copper Mine to reach 140,000 tons in the 2026 fiscal year. Zambia's copper production target for this year is 1 million tons.
Source: ecofinagency
Original: www.toutiao.com/article/1848448054953034/
Disclaimer: This article represents the views of the author