Kansanshi S3: One of many indicators of Zambia's next-level progress
Big moves are under way at FQM’s mines. It’s good news for us at JVChantete – and part of a bigger good news story for Zambia.
Stalled under previous Zambian government administrations, President Hichilema’s initiatives to boost the mining industry are finally taking shape and leading to fruition in terms of concrete new investments.
As part of this, the S3 development at Kansanshi has been given the green light and will officially open imminently, on 19 August. First Quantum Minerals’ Sentinel mine achieved record volumes in 2024, said CEO Tristan Pascall in the Canadian company’s annual report, and its Kansanshi S3 expansion will mark an “inflection point” for FQM’s further growth.
JVChantete have received a Letter-of-Intent (LOI) confirming a service contract with Kansanshi involving bulk mining, clean ups and battering, and we are proud to be a part of this new Kansanshi growth chapter.
We have also recently completed the crusher project at Lumwana Mining Company, part of the Barrick group. The super-pit expansion at Lumwana is part of Barrick’s $2 billion investment strategy to significantly grow its copper output by 2027.
Sentiment and business confidence soars
In his speech opening the Zambia International Trade Fair in Ndola last month, President Hichilema highlighted the renewal of the mining industry – the flurry of investment deals, announcements of new mines such as in Chililabombwe, Mingomba and Mumbwa, and the renewal of activities in Kitwe and Mufulira. The government updated its copper production target in August last year, raising it to three million tonnes per annum by 2031. As of April 2025 measured annual output was approximately 820,000 tonnes, with projections to achieve the one-million-tonnes-per-annum mark by the end of the current year. “This scale of [new] production will create thousands of jobs,” he said, reiterating his government’s economic transformation agenda. The new 50% tariff on copper imports to the US, effective this month, is concerning, but the market outlook for the metal remains positive. “Bullish fundamental undercurrents in copper” summarises leading business intelligence and price reporting agency, Fastmarkets. The government’s strategy of using the copper mining industry as a primary lever to boost foreign investment and, overall, the country’s economy, continues to make sense.
July also saw Lusaka hosting the inaugural Invest Zambia International Conference, where President Hichilema was again buoyant, saying that “Zambia is on a journey of transformation,” and committing to quickening the resolution of business-critical issues hindering or stifling investments. At the conclusion of the conference his office announced Memoranda of Understanding for $3 billion in new foreign inflow investments. His optimism is mirrored in the Bank of Zambia’s most recent Financial Stability Report, which notes that financial institutions are demonstrating “increased appetite to raise the flow of funds to businesses and help sustain momentum.”
Growth also means progressing ESG
Too often in the past, government policy and regulatory frameworks have not realistically incentivised and enabled businesses to fund and implement environment, social and governance (ESG) programmes. Perfect became an obstacle to good when companies faced inconsistencies and uncertainties, unclear criteria and mutating reporting standards. An imbalance between ESG objectives and economic priorities made it impractical for corporates to sustain truly meaningful initiatives.
Now, mining companies are increasingly aligned to the government’s vision and are investing accordingly – including the award of long-term contracts, in turn allowing mining services businesses to invest above the minimum in environmental compliance measures, local infrastructure and community projects, and their people.
Compliance is no longer the issue; rather, it’s whether investments go beyond compliance to genuinely strengthen and extend governance by way of local partnerships and socioeconomic contribution. We cannot stress this enough: long-term investments and commitments unfold into broader benefits involving upskilling, job creation, business-building and economic transformation. Essentially, corporate affairs gets taken to a higher level, because ESG can now become an important secondary focus throughout the mining industry’s value chain. (I say ‘secondary’ because profit remains the core deliverable. Without a return on investment to shareholders there will be no further investment. For too long successive Zambian governments have failed to accept this, but fortunately under President Hichilema the tide has turned.)
Bilateral win-win
These promising developments should also be seen in the context of more extensive US-Zambia cooperation and commercial ties.
In November last year America opened a Commercial Services bureau in its Lusaka embassy, the only one on the continent. Gains have quickly materialised: US-headquartered critical minerals development business Terra Metals Inc. and energy and resources investment firm Metalex Commodities have partnered to form a new entrant in Zambia’s mining sector, Lunda Resources. The initial $100 million investment tranche will kickstart infrastructure and plant construction, as well as ESG compliance measures. According to Lunda Resources chairman Mumena Mushinge, the 240-ton-per-hour cobalt and copper concentrator will be in commission next month.
Further, although the second Trump administration has dialled down US foreign policy, it remains committed to the strategic Lobito Railway Corridor infrastructure project. This will materially improve the logistics links to Atlantic coast ports for mining operations in Angola, the DRC and Zambia.
These and other initiatives indicate a mining industry watershed for Zambia, a changeover from promises and plans to real investments and project rollouts. They underscore what happens in the nexus of sound government policy and far-thinking industry leadership.
Zooming out to the big picture potential for Africa, what’s happening in Zambia may help to catalyse mining investments across the continent. Its rich metals and minerals resources are acknowledged, but, according to the Centre for Strategic and International Studies, during the past decade “Africa has been consistently overlooked in global mineral exploration investment,” with the continent’s share of global exploration expenditure declining from 16% in 2014 to 10.4% in 2024. This has occurred despite sub-Saharan Africa’s mining exploration being the most cost-effective in the world and generating the highest returns on investment, according to the Centre’s director for its Critical Minerals Security Programme, Gracelin Baskaran. Perhaps Zambia is becoming a mining investment template, a 21st-century forerunner, for how it should be done.
Spurring Zambia’s economy – for everyone
Thus, besides now being particularly optimistic about mining in Africa, we are also watchful on these undercurrent trends of long-term industry sustainability and health. We’re hopeful that all major players are also committed to deep and wide local upliftment. At JVChantete we have recently demonstrated our belief in the importance of empowerment, including local ownership, with 30% of the company now being owned by Zambian shareholders.
A recent Lusaka Times op-ed makes the point that foreign direct investment (FDI) inflows and GDP upticks are not measures that count for ordinary citizens. “Economic development is about outcome, not output,” it notes. Mining’s financial payback periods are not short, but investors should not make the mistake of phasing ESG to sync with returns – especially not the ‘S’ of ESG. Increasingly, academic assessments prove the benefits of establishing ESG in early project development stages, as a sound foundation for returns, or what one study calls “profit with meaning”.
JVChantete has been implementing this since inception. We are committed to the growth of Zambia’s mining industry and the country’s economic and social prosperity, and support the idea that other companies should carry this torch, too. Together, we can fulfil the development potential of investments such as at Kansanshi S3.
Do you agree that the prospects for Zambia’s mining industry and growth are good? Drop me a line at lafras@iafrica.com