Copper Output in Zambia for 2022 Falls Below Projected Targets
Zambia’s copper production for the year has fallen by 5% to around 760,000 tonnes, which is not in line with the New Dawn Administration’s target to increase copper production to over 3 million tonnes in the next 10 years.
This decrease was anticipated due to ongoing production challenges and difficulties sourcing short-term funding at both Mopani Copper Mines (MCM) and Konkola Copper Mines (KCM), which have prevented these companies from reaching their full production potential.
The total copper produced in Zambia in 2022 was 763,287 metric tonnes, a decrease from the 800,696 tonnes produced the previous year in 2021.
According to a report on consolidated copper production verified by the Chamber of Mines, the copper production in 2022 decreased by 37,409 tonnes, resulting in an export revenue loss of about $340 million at an average international copper price of $9,000.
Despite the government’s target of increasing copper production to 1.3 million metric tonnes for the 2022 fiscal year, the 5% decrease does not support this goal of achieving 3 million tonnes of copper in the next 9 years.
The Minister of Finance and Mines maintains that the 3 million target is achievable, but some mining and exploration experts dispute this claim, stating that the target is unattainable and may not have been based on exploration and mine developments on the ground.
Mining experts suggest that the 5% decrease in copper production can be attributed to the continued decline in production at Mopani and unresolved issues at Konkola Copper Mines.
They believe that these issues have largely contributed to the decreased copper production in 2022. If even the resolution of gold mining at Kasenseli mine has been delayed for so long, how can large-scale copper mining be expected to progress more quickly?
Former President of Mining Suppliers, Augustine Mubanga, expressed concern that the mining sector must begin contributing to Zambia’s economic agenda to avoid negative impacts on the national economy, the Copperbelt’s regional economy, and the lives of people directly dependent on the smooth operations of the mines.
He suggests that the negative contribution of Mopani and Konkola Copper Mines to the total production of 2022 will have a significant impact on the revenues received from the mining sector.
Towns and cities like Kitwe, Ndola, Chingola, Mufulira, and Chililabombwe are under economic pressure as a result.
Mubanga recommends that the government form a technical group of various stakeholders with a strong knowledge of the mining sector to advise the government on issues surrounding the mining sector, particularly in cases where two giant mines like Mopani and KCM are concerned.
Urgent attention is needed to address both the court cases at Konkola Copper Mines and the unprofitability of the Glenore deal at Mopani Copper Mines as these have left local businesses struggling and have paralyzed the Copperbelt and the country as a whole.
