Zambia Embraces US-Backed Project to Transform Copper Mining Logistics
Zambian President Hakainde Hichilema has hailed a transformative initiative supported by the United States, aiming to link the nation’s copper mines to the Angolan port of Lobito, presenting what he calls a “once-in-a-lifetime” opportunity for Zambia.
The ambitious project involves the construction of new railway infrastructure in Zambia, connecting mining operations owned by companies such as Barrick Gold Corp. and First Quantum Minerals Ltd. to the Atlantic Ocean port of Lobito in Angola.
The United States is contributing to the refurbishment of the Angolan railway with a $250 million loan, subject to due diligence, announced by the International Development Finance Corp. last year.
Seen as pivotal to the Biden administration’s strategy to secure access to critical metals for the energy transition in Zambia and neighboring Democratic Republic of Congo, the Lobito corridor also aims to counter China’s influence in the region.
With backing from the European Union and the Group of Seven wealthy nations, the project spans three countries and holds significant economic promise.
President Hichilema emphasized the groundbreaking nature of the initiative, describing it as a “generational opportunity” that promises significant benefits for the economies and people of the countries involved.
The project aims to streamline transit times for supplies to mines and expedite the transportation of metals to the port, potentially reducing journey durations by weeks.
Trial shipments from Congo to Lobito have already demonstrated promising results, taking approximately a week compared to over a month for trucks bound for the South African port of Durban.
Speaking at an investment forum organized by the United States in Zambia to attract private investors for the Lobito project, President Hichilema underscored its significance, noting a projected cost exceeding $2 billion.
This initiative comes at a time when China has announced its own plan to invest over $1 billion in revitalizing a railway connecting Zambia’s copper-rich region to the Tanzanian port of Dar es Salaam.
President Hichilema anticipates finalizing the deal with China by September, envisioning the operation of the state-owned Chinese company, Tazara, to commercially manage the railway.
