Ladies and Gentlemen,
First of all, let me take this opportunity to wish you all, and indeed, the people of Zambia, a happy new year.
I recognize the Permanent Secretary at the Ministry, Dr. Hapenga M. Kabeta, and directors from the Ministry who are present here.
I wish to welcome you to this Press Briefing for the performance review of the mining sector in 2024. Members of the press, through you, i also wish to address the nation on the current performance and developments in the mining sector.
Therefore, my statement will be in seven (7) parts, namely, the 2024 production levels for various mineral commodities, licencing, investments in the mining sector, policy, legal and institutional reforms, ongoing implementation of sector strategies and programmes, accidents in the mining industry as well as 2024 non-tax revenue collection.
Ladies and Gentlemen
Under the leadership of His Excellency, the President of the Republic of Zambia, Mr. Hakainde Hichilema various interventions are being undertaken to, once again, make the mining sector vibrant to the country’s socioeconomic development.
Allow me to highlight some of the developments and interventions in 2024.
- 2024 production figures for various mineral commodities
Ladies and Gentlemen,
The sector has continued to experience tremendous growth through investment, driven mainly by expansion in large-scale mining. Zambia’s endowment of mineral resources is substantial. However, production of metallic minerals continues to dominate the mining sector. Increasing mineral production in general and working towards the attainment of the 3 million tonnes of copper production annually by 2031 in particular remains the major focus. Production figures of some mineral commodities were as follows:
Table.1. Commodities with updated production figures as at December 2024
Commodity | 2024 Production | 2023 Production | % Change |
Base Metals | |||
Copper | 820,676.34 Mt | 732,583.45 | 12% |
Gold | 3,141.81 Kg | 2,237 Kgs | 40% |
Cobalt | 1,409. Mt | 207 Mt | 581% |
Nickel | 21,039.55 Mt | 7,979.95 Mt | 164% |
Manganese | 134,932.48 Mt | 66,692.21 Mt | 102% |
Zinc | 52,105.84 Mt | 171,066.24 Mt | -70% |
Gemstones | |||
Emerald | 31,578 Kg | 14,813 Kg | 113% |
Other Commodities | |||
Cement | 3,262,318.78 Mt | 2,768,935 Mt | 18% |
Coal | 174,624.00 Mt | 706,115 Mt | -75% |
I am pleased to share that Zambia’s copper production in 2024 experienced a significant boost, exceeding the 2023 annual production by 12%. The total output for 2024 was 820,676.34 metric tonnes (Mt), compared to 732,583.45 Mt in 2023.
The second half of 2024 saw a marked improvement in performance compared to the first half, driven by several key factors:
- Increased Production at Existing Mines: Mines such as Lumwana demonstrated exceptional performance, with production doubling during this period.
- Resumption of Operations: The recommencement of copper production at Konkola Copper Mines (KCM) and Mopani Copper Mines contributed significantly to the overall increase.
- New Production Capacity: The operationalization of Mimbula Mine added to the sector’s growth, boosting total output.
These developments underscore the mining sector’s growing momentum and reflect a combination of operational improvements, expanded capacity, and strategic efforts to optimize production.
Other mineral commodities whose 2024 production surpassed their 2023 production include Nickel, gold and emeralds.
This however is in the midst of the severe drought which affected the energy supplies to the mining industry.
- Participation of Zambians in Mining through Licencing
In 2024, the Ministry recorded an increase of 79 percent in the number of licences granted with mining and non-mining rights compared to 2023. The number of Artisanal Mining Rights (AMR) granted increased from 304 in 2023 to 680 in 2024 representing an increase of 124 percent. This type of license is exclusively given to Zambian citizens. In addition, Zambian citizens are also beneficiaries of Small-scale Exploration licenses and small-scale mining licenses. No small-scale licence (exploration or mining) can be issued without Zambian shareholders. Therefore, Zambian citizens in 1372 mining rights out of the total of 2175 licenses. This is 63% of mining rights had Zambian ownership.
S/N | Description | 2023 | 2024 | % Change |
1 | Artisanal Mining Rights (AMR) | 304 | 680 | 124% |
2 | Small Scale Exploration Licenses (SEL) | 399 | 615 | 54% |
3 | Large Scale Exploration Licenses (LEL) | 413 | 692 | 68% |
4 | Small Scale Mining Licenses (SML) | 61 | 77 | 26% |
5 | Large Scale Mining Licenses (LML) | 12 | 37 | 208% |
6 | Mineral Processing Licenses (MPL) | 29 | 74 | 155% |
TOTAL | 1218 | 2175 | 79% |
- Investments in the mining sector
- Recapitalization of Mopani Copper Mines Plc
Following the unveiling of International Resource Holdings (irh) as a strategic partner for Mopani copper mines plc, irh committed to recapitalize the mine by investing about USD1.1 billion and settlement of the debt Mopani Copper Mines was owing suppliers and contractors.
So far, Mopani, currently stands out as the country’s highly technologically advanced underground mine. It has also increased employment numbers from 10, 765 employees to the current 12,684 employees as of December 2024.
In terms of supplier engagement, 82 % of the 1,089 total suppliers of goods and services to Mopani are local Zambians.
Mopani has also made significant improvements in its production such as increasing the copper grade from 1.68 % to 2.21% and ore production from 2.2 million tonnes to 2.8 million tonnes.
- Re-launch of Konkola Copper Mines Plc
Following the agreement between Government and Vedanta Resources Plc to settle the dispute between the two parties excuria, on 21st august, 2024 Government officially re-launched and handed over the management of the mine to Vedanta Resources Plc.
The re-launched mine demonstrated Government’s commitment in resolving the court disputes amicably for the benefit of both parties and indeed the people of Zambia. Vedanta Resources Limited is investing USD1.3 billion over the next five years and create over 2,000 direct and indirect jobs.
- Dewatering of shaft 28
Government commissioned the dewatering of the flooded shaft 28 at China Non-Ferrous Metals Company, Luanshya Copper Mines in Luanshya at an investment of USD500 million. This development paved way for the commencement of copper mining at the shaft which had been dormant for over 20 years.
The New Luanshya Mine will create about 3,000 jobs, offer great business opportunities and ultimately improve lives of the people of Luanshya and beyond.
- Commissioning of the Kitumba Mining Project
On 17th August 2024 His Excellency, President Hakainde Hichilema commissioned the Kitumba Mining Project in Mumbwa District, Central province.
This investment is at a cost of USD600 million and is expected to generate over 2,500 direct and indirect jobs. The mine will create employment opportunities across various sectors thus, contribute to stimulating national development. The Mine is expected to start production later this year in 2025.
- Investment of USD300 million in Lubambe Copper Mine
During the year, jchx Mining acquired a controlling interest in Lubambe Copper Mine, committing to invest USD300 million in the mine. The government through the Ministry of Mines approved the transaction. This is aimed at reviving the mine and extending its life of mine. This investment will positively impact the local economy on the Copperbelt by providing employment and business opportunities to the people and businesses on the Copperbelt.
- Mingomba Mining Project
Government commissioned the Mingomba mining project in Chililabombwe, Copperbelt province. The promoters of the project – Kobold Metals will invest USD 2 billion. This development will bolster economic activities on the Copperbelt and generally improve the livelihoods of our people. So far, 571 jobs have been created out of the 1,000 direct and indirect jobs promised.
- Lumwana Mine Super Pit Expansion Project
As may all be aware, His Excellency the President Mr. Hakainde Hichilema led the groundbreaking ceremony of the super pit on 2nd October 2024. In an effort to expand its operations and ultimately ramp up copper production, Lumwana mine embarked on the development of the Lumwana mine super pit expansion project at a total cost of USD 2 billion. The development of the project has advanced with first production scheduled for 2028.
Once operational, the super pit expansion project contributes 240,000 tonnes of copper annually adding to the 3 million production target of copper over a period of 30 years. The project will have a positive impact on the local and national economy through jobs and business opportunities that will be created arising from this development.
- Commencement of operations at Kasenseli Gold Mine
You will recall that on 23rd October 2021, Government suspended operations at Kasenseli Gold Mine due to safety and administrative concerns which needed to be addressed.
Government made strides in resolving the challenges which led to the suspension of operations at the mine, as such, Kasenseli Gold Mine resumed its operations.
- Kansanshi Expansion Project
The Kansanshi Expansion Project (S3) is aimed at increasing recoveries by increasing the milling capacity. The recoveries had significantly reduced over three years following the deterioration of the ore grade. The expansion project is expected to be commissioned in 2025 upon which the grade of copper will improve hence increasing mining output.
- Kalengwa Mine Limited
Kalengwa Mine is a mine that was closed over 40 years ago. Its operations were prevented due to various legal challenges without a winner. The Policy of the New Dawn Government made it possible to reopen the mine on 18th November 2024 with a pledged investment of US$200 million in equipment purchases and further exploration works and a further investment of over US$1.0 billion during mine development.
- Consolidated investments
The consolidated investments made in the mining industry starting 2024 is US$ 9.3 Billion with additional pledges of US$1.0 Billion when the Kalengwa Mine commences mining operations in five years’ time.
- Policy, Legislative and Institutional Reforms
In 2024, the Government through the Ministry undertook various reforms in the mining sector which include the following:
- Minerals Regulation Commission Act
The Ministry embarked on the process of establishing the Minerals Regulation Commission aimed at delegating the regulatory functions of the Ministry to the commission while the Ministry retaining policy related matters.
The commission is expected to enhance regulation of the industry, increase revenue generation for the treasury and ultimately contribute to national development.
As I address you, ladies and gentlemen, I am happy to inform you that His Excellency, the President Mr. Hakainde Hichilema has assented to the Minerals Regulation Commission Bill and is now therefore an Act of Parliament, awaiting the issuance of statutory instrument for the operationalization of the Act.
The process of operationalizing the commission is already in full gear, and that before end of the first quarter of 2025, the Commission will be fully operational.
- Geological and Minerals Development Bill
To accelerate geological mapping and mineral resource exploration as well as ensure the development and growth of the artisanal and small-scale mining activities, the Ministry is in the process of repealing and replacing the current mines and minerals development act no 11 of 2015 through the has formulation of the geological and minerals development Bill. The Bill has since been presented before parliament and is at first reading stage.
Some of the progressive provisions of the bill, include establishment of the department responsible for artisanal and small-scale mining, creation of a fund to support artisanal and small-scale mining subsector.
It is expected that during the legislative session of parliament this year, in February 2025, it will be enacted into law.
- Local Content Regulations
The Ministry has developed draft Local Content Regulations for the mining sector which seeks to enhance the participation of Zambians across the mining value chain. This move is progressive in that the regulations seek to make provisions for mining companies to reserve contracts for Zambian contractors and suppliers. So far, stakeholder consultations on the draft legal framework are ongoing and once consensus is reached with key stakeholders the regulations will be promulgated. The government is determined to finalize this matter before the end of 2025.
- Establishment of a Special Purpose Vehicle (spv)
Government through the Ministry has established a special purpose vehicle (spv) called the Zambia Minerals Investment Corporation Limited. What this company will do is to enable Government to enter into various strategic partnership thus joint ventures with local and foreign investors. This, therefore, will facilitate and ensure value addition and beneficiation as well as guaranteeing increased benefits for the people of Zambia.
- Critical Minerals Regulations
To reposition Zambia as part of the global supply chain for critical minerals essential for energy transition and decarbonization, as well as ensuring maximum benefits for Zambians from their mineral resources, the Ministry formulated the national critical mineral strategy.
Following this, the Ministry is now in the process of formulating critical minerals regulations to provide for Government investment in the critical mineral value chain, through public private partnership model.
- Ongoing implementation of sector strategies and programmes
Ladies and gentlemen, under this area, the following are being undertaken:
- Three Million Tonnes Copper Production Strategy
As you may be aware, Government set a target of increasing its annual copper production from the current average of 800,000 metric tonnes to 3 million metric tonnes by 2031.
To actualize this target, the Ministry launched the three million tonnes copper production strategy by 2031. The strategy aims to promote Zambia’s economic development by increasing copper production, fostering innovation, and creating jobs while ensuring that mining activities meet environmental protection standards.
A monitoring tool has been created to track this target, and various interventions are in place to ensure its achievement. With various investments in the sector, I have alluded to already, in brownfields and greenfield, we are poised to attain this goal.
- National Critical Minerals Strategy
The strategy seeks to promote investment by Government in the mineral value chain. In addition, it spells out Government’s strategic focus and objectives for exploiting the country’s critical minerals.
Through the strategy, Government seeks to participate in the entire mineral chain from exploration, mining and trading in various mineral commodities.
- Countrywide High-Resolution Aerial Geophysical Survey
On 14th august, 2024 President Hakainde Hichilema launched a countrywide high-resolution aerial geophysical survey. The survey seeks to support new and ongoing mineral resource exploration and development projects by unlocking investment in the mining sector through generation of reliable and up to date geological information.
Geological information generated will also be key in actualizing the attainment of three million tonnes of copper production by 2031, and the exploitation of critical minerals in light of the green energy transition. The initial target areas for the survey are western and northwestern provinces after which the survey will be extended to other provinces.
As of31st December 2024, the survey of Chavuma, Zambezi, Lukulu and Kalabo districts was concluded representing 8 % of the country’s total surface area expected to be surveyed.
I wish to further update the nation through you that the currently geophysical airborne survey is taking place in sub block B2 of Zone A along the country’s southern border thus from Mongu, Senanga, Sesheke including parts of Kazungula and Livingstone. In addition, the area around Luangwa/ Zambezi River confluence covering Luangwa, Siavonga, Chirundu districts are being surveyed to establish the subsurface geological structures in that area.
- d) MoU with the Geological Survey of Finland (gtk).
Following the commencement of the countrywide high-resolution aerial geophysical survey, which I have alluded to above, Government through the Ministry signed an MoU with the Geological Survey of Finland (GTK). This strategic partnership aims at ensuring quality control and assurance of the data that will be generated during the aerial geophysical survey thus, resulting in quality and reliable geological information.
- e) Formalization of artisanal and small-scale mining subsector
The activities of illegal mining are a big challenge that our government is fully committed to addressing. Illegal mining activities have far reached environmental, economic and social negative impacts. This scourge has resulted in the needless loss of life and poses a significant threat to national security.
To combat this and in line with the President’s directive, Government has been making strides in ensuring that the artisanal and small-scale mining subsector is re-organized. Among the interventions undertaken is formation of mining cooperatives across the various parts of the country where informal mining and trading activities have been taking place. In addition, in order to enable ASMs meet necessary safety standards, the Ministry has undertaken capacity building programmes for the miners in basic mining methods, skills, health, safety and environmental protection.
Further, to enhance the formalization programme, a department responsible for artisanal and small-scale mining was given treasury authority for its establishment in 2024. The Department will anchor the development of the ASM subsector which include the establishment of the ASM Fund among others.
In 2024, 680 artisanal and small-scale licences have been issued. Out of these licenses, 519 are in gold mining and 161 are in non-gold mining commodities such as manganese and copper.
Ladies and Gentlemen
I wish to inform you that the Government does not cordon any illegalities in the mining sector and as such will continue applying the law and maintain order to eradicate the scourge.
- Establishment of Gold Marketing Centres
To curb informal gold mining and trading activities, Government through the Ministry is constructing gold marketing centres in areas with significant gold mining activities. The construction of the first two centres has so far commenced in Mumbwa and Rufunsa districts. The centres are expected to be completed in the first quarter of 2025. To support the operationalization of the centres, Government has also procured various equipment to enhance the operations at the centres.
Government has also appointed Zambia gold company limited as a gold aggregator to be buying gold from the formalized gold mining cooperatives. The company is expected to set up camp in Rufunsa and Mumbwa soon.
- g) MoU with Ivanhoe mining limited
The government through the Ministry signed an MoU with Ivanhoe Mining Limited on 26th August 2024. The MoU relates to the exploration and production of copper. The MoU among others, aims to ensure that both parties co-develop prospective projects to ensure long term sustainable development of the country’s mineral resources while providing a sustainable contribution to the national economy and host communities. Further, this development is critical as it will contribute to the country attaining three (3) million tonnes of copper production by 2031.
Ladies and Gentlemen
Ivanhoe is a Canadian Mining Company focused on the exploration, development, and production of mineral resources in Southern Africa.
The company is known for its commitment to responsible mining practices and its significant projects, which include: Kamoa-Kakula copper complex in DRC. This is one of the world’s highest-grade and fastest-growing copper mines.
- h) The MoU Between the Zambia and the Kingdom of Saudi Arabia.
As you may be aware, I attended the Future Minerals Forum in Saudi Arabia where we made keynote addresses promoting Zambian mining. The highlight of the trip was the signing of the Memorandum of Understanding between Zambia and Saudi Arabia. MoU aims to foster collaboration between the two nations across the mineral resources value chain, including potential joint ventures in exploration; mining; processing; and development of human capital. It also seeks to promote the exchange of knowledge, expertise, and best practices.
The government of the Republic of Zambia sees this MoU as a catalyst to unlock new opportunities for investment and growth in the mining sector, leveraging Saudi Arabia’s financial and technical expertise to develop Zambia’s rich mineral endowment sustainably.
Government of the Kingdom of Saudi Arabia is clearly pleased to partner with Zambia to build a robust and sustainable future for the mining industry, driving economic growth for both nations through collaboration and knowledge sharing.
Ladies and Gentlemen,
The Agreement underscores the commitment of both countries to responsible resource development in a time of increasing global demand for critical minerals, and highlights Zambia’s proactive approach to forging international partnerships for the sustainable development of its mining industry. This MoU signifies a significant step towards strengthening bilateral relations and building a prosperous future for the mining industries of both Zambia and Saudi Arabia.
- i) Zambia Mining and Investment Insaka
To attract investment in mining, the Ministry is undertaking various events such as the Zambia mining and investment Insaka which was held from 7th to 11th October 2024 and attracted over 2,000 local and international delegates.
Following this event, there has been expression of interest from local and international investors to invest in the mining sector in Zambia. For instance, Zambia signed a Memorandum of Understanding with the Saudi Arabian Government I have referred to above.
- Accidents in the mining industry
Ladies and gentlemen,
Despite awareness campaigns conducted in the various mines, there was an increase in reportable accidents in the year 2024 compared to 2023. In 2024, 98 accidents were reported compared to 43 recorded in 2023 with fatalities being 31 and 19 respectively. This was attributed to an increase in illegal mining activities particularly in the ASM subsector. As already mentioned, Government will continue applying the law and maintain order to eradicate illegal mining activities. We, therefore, call upon our traditional leaders and local authorities to join forces with the Government to stop illegal mining.
With regards to revenue collection, the Ministry recorded a 49.96 percent increase in non-tax revenue collections from ZMW 76,421,457 in 2023 to ZMW 114,598,521.28 in 2024. This was attributed to robust campaigns done by the Ministry in sensitizing the public on not only formalization but also paying mining area charges and penalty fees paid by erring mining right holders.
Ladies and Gentlemen,
I wish to conclude by reiterating that Government under the leadership of His Excellency, the President Mr. Hakainde Hichilema is committed and keen to reform the mining sector to improve the country’s socio-economic development.
I thank you and wish a prosperous new year.