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Despite a difficult and volatile macroeconomic environment, government is banking on a “promising” mining industry to fuel Zambia’s economic growth.
Presenting the 2025 budget on Friday in Lusaka,Finance and National Planning Minister, Situmbeko Musokotwane, projected an ambitious 6.6 percent economic growth rate, largely anchored on the revival of Konkola Copper Mines (KCM) and Mopani Copper Mines (MCM), alongside upcoming greenfield projects.
“Noting the importance of the mining sector to Zambia, this government prioritized reviving the industry when we came into office in 2021. The strategy involved three steps. The first step was to re-open mining companies that were locked up in legal disputes,” Musokotwane said, adding that the revival of the two mining giants had been achieved.
The second step, he explained, was improving the mining investment climate, ensuring that companies that had planned to leave Zambia remained.
He pointed out that First Quantum Minerals (FQM) and Lumwana Mine were already implementing major production expansion projects.
“The improved investment climate has also resulted in the revival of Shaft 28 in Luanshya, a mine that had been abandoned for nearly two decades and will create 3,000 jobs,” he said.
Musokotwane also noted that Lubambe Mine had been saved from closure and was now expanding, with an initial investment of US$300 million.
Additionally, Kalengwa Mine in Mufumbwe he said was set to start operations with an initial investment of about US$200 million.
He also highlighted the US$2 billion investment at the recently commissioned Mingomba Mine Project in Chililabombwe, which would reportedly create over 1,000 jobs.
“Riding on an improved investment climate, the third and final step was to encourage mineral exploration. Mining exploration is an important economic activity by itself as it creates jobs,” Musokotwane said.
He further revealed that Zambia had launched a countrywide high-resolution aerial geophysical survey, which will provide reliable and updated geological data to support investment in greenfield and brownfield projects.
Musokotwane expressed optimism, stating, “I am very hopeful that this rebound marks the start of our consistent journey towards the target of three million tonnes of copper production.
“With the profound interest in the expansion of existing assets, the development of new mines, and increased mineral exploration, I have no doubt that we shall reach the target.”
Musokotwane also hinted at government plans to encourage the exploration of hydrocarbons, such as oil and gas, to unlock new investment areas.
This approach, he said, would follow models used by neighboring countries that have successfully attracted capital into the industry.
The government is also moving forward with plans to formalize gold trading by establishing gold marketing centers, with pilot projects set to launch in Mumbwa and Rufunsa districts later this year.
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