Kansanshi Mining Reports Strong Financial Results Amid Zambia’s Power Crisis
Kansanshi Mining, a subsidiary of First Quantum Minerals (FQM), posted impressive financial results for the first half of 2024, driven by higher copper prices and improved ore grades despite ongoing electricity challenges in Zambia.
The company recorded a net profit of $117 million, a remarkable recovery from a net loss of $1.1 million during the same period last year. Income tax contributions also surged to $56 million, up from $3.6 million in 2023.
Revenue for the half-year increased by 25%, reaching $927 million. This growth was largely due to a 28% rise in copper prices and a 15% increase in production, with the mine producing 72,980 tonnes of copper.
Anthony Mukutuma, FQM Director for Zambia, highlighted the company’s resilience, stating, “Our strong performance this year reflects our operational agility and resourcefulness in navigating Zambia’s power crisis.
The progress on the Kansanshi S3 Expansion and our response to power disruptions demonstrate our commitment to maintaining operations and supporting Zambia’s mining and energy sectors.”
Kansanshi’s S3 Expansion project in Solwezi is progressing well, with major equipment installations like the SAG mill and primary crusher advancing on schedule
. Expected to be completed by mid-2025, this expansion will boost the company’s production capacity, ensuring future growth and economic contribution to the region.
For 2024, Kansanshi forecasts copper production between 140,000 and 150,000 tonnes, alongside 65,000 to 75,000 ounces of gold.
Zambia’s mining sector has faced significant challenges due to a nationwide power crisis exacerbated by drought. Power supply reductions from ZESCO have reached 40% since July.
In response, First Quantum has secured 193 MW, or 52% of its power requirements, from regional suppliers through the Southern African Power Pool.
This strategic move has minimized operational disruptions, allowing Kansanshi, Sentinel, and Enterprise mines to continue functioning effectively.
