The Kalumbila district in the North western province of Zambia is endowed with vast mineral deposits such as copper, cobalt, gold and now nickel, a key element in the manufacturing of lithium iron batteries, using electric car vehicles.

Zambian President Hakainde Hichilema has recently launched the Enterprise Nickel Mine. The project owned by First Quantum Minerals in Kalumbila district carries a significance of providing raw materials for the production of electric motor vehicle batteries. Once up and running, First Quantum Minerals’ (FQM) mine will be the largest producer of the strategic metal in Africa. Nickel, like lithium, cobalt, and copper, is an essential component in the batteries essential for the new era of ‘green’ vehicles.

“I would like to thank First Quantum for the decision to invest $1.35bn in the expansion of Kansanshi…and to raise additional capital for Enterprise,” said President Hichilema at the ground breaking ceremony for the mine.

“This investment, $1.3bn, will deliver direct and indirect jobs, somewhere in the region of 18,000; and in this country, colleagues, one job supports 10 other members of the family in the house or extended. So if you do your numbers correctly, 18,000 by 10, it’s 180,000 people benefitting. That is where the value sits. So thank you First Quantum,” he added.

Designed to process 4 million tonnes of ore and produce around 28,000 tonnes of nickel per year, Enterprise will provide an estimated 700 permanent jobs while making Zambia the largest nickel producer on the continent and the 10th largest producer of the highly sought-after mineral in the world. Hichilema says development will also help the country make the vision of moving into a clean and environmental friendly nation a reality.

Traditional leaders who have overseen the setting up of the nickel mine met President to voice their concerns. “We are in the suggestion that at least 15% of the revenue collected in these mining activities must remain in the province for development in order to mitigate the negative impacts that arise from mining” Chief Munema of the Kaonde People, in the North Western Province.

FQM announced the company’s US$100 million investment into the project at the African Mining Indaba in May, where President Hichilema welcomed the investment and reaffirmed his desire to see more partnerships like this that would turn Zambia into a hub for development and secure the country’s place in the electric vehicle (EV) battery ecosystem.

The nickel processing plant, which was completed in 2016 and given environmental approval, has sat on care and maintenance awaiting favourable market conditions since then. Now, with the global push for a green energy transition, rising demand for metals like nickel that are integral to the shift, and a new, favourable mining regime, the timing is just right for the nickel operation to finally be fired up.

Speaking at the groundbreaking ceremony, FQM CEO Tristan Pascall said: “If the last few years have taught us anything, it is that stability is paramount. As key players in an industry where geopolitical security is so important, the hard work that Zambia has put into protecting that peace and stability does not go unnoticed. Zambia certainly is a prime investment destination for us.

“With over a quarter century of experience under our belt, we appreciate the importance of working hand-in-hand with stakeholders and aligning with government mandates. Soon to become our third operation here, Enterprise project is in our books, a vote of confidence from – and for – the Zambian government and the Zambian people. It is a vote of confidence in our continued transparency, responsibility, and operational excellence.” said Pascal.

This leap to secure Zambia’s stake in the EV battery market will not only shift the country’s economic dependence from copper but will also unlock fresh opportunities for business and innovation in the nickel value chain.

Source: https://www.miningreview.com/nickel/zambia-secures-its-stake-in-the-ev-battery-market/

Zambia and DRC have vibrant mining sectors. They form part of the so called “Copper belt” which stretches from the Central African Republic, the DRC and Zambia. This region accounts for the world’s largest supply for cobalt, a mineral used in the production of lithium-ion batteries.

A June 2020 report by the United Nations Conference on Trade and Development (UNCTAD) predicts that some 23 million electric vehicles will be sold over the coming decade. “The market for rechargeable car batteries, currently estimated at $ 7 billion, is forecast to rise to $ 58 billion by 2024,” the UN report says.

Benchmark Mineral Intelligence, a body that researches and publishes market data on the lithium-ion battery and EVs supply chain, states that global demand for cobalt has tripled since 2011 in the battery sector alone. It further predicts that demand for cobalt will reach 190,000 metric tons by 2026.

Whereas the precious metal cobalt is sourced largely from the DRC and Zambia, refining and value addition to the metal takes place elsewhere, in countries such as Belgium, China, Finland and Norway. Zambia has advanced its manufacturing sector with potential to produce car batteries.

For this reason, the southern Africa country has sought for a partnership with its neighbour DRC to boost their mining and manufacturing sectors to be able to take advantage of the global demand for cobalt and lithium-ion batteries. By doing so, they hope to shorten supply lines between cobalt refineries and battery-making plants.

The two governments recently signed a memorandum of understanding; “Zambia–DRC Battery Council” which they hope will make them massive producers and refiners of cobalt for electric vehicle batteries. “Our focus is job creation for the people of our two countries through economic diversification, job and wealth creation for the economic and social transformation of our citizens,” said president Hakainde Hichilema of Zambia when he signed the agreement in Lusaka alongside his DRC counterpart president Felix Tshisekedi.

The move by the two countries has received support from environmentalists and climate change activists who see it as a step in the right direction. “If our country effectively mines cobalt and copper for the electric vehicle battery value chain, it’s going to be a win for Zambia, a win for the EVs industry and a win for the environment as we look to cut fossil-fuel emissions on a global scale,” said Robert Chimambo, a local environmental activist.

Zambia’s foreign affairs and international cooperation minister Stanley Kakubo expressed support for the partnership saying: “The joint Zambia-DRC battery precursor initiative has a vision to create a competitive electric vehicle battery value chain aimed towards sustainable development and inclusive growth. It is in line with the country’s development aspirations to bring about a more diversified and industrialised economy which will contribute towards job creation and the improvement of the Zambian people’s livelihoods.”

Several Chinese, Japanese, US and European automakers have assembly plants in South Africa for traditional cars but electric car producers like Tesla are absent. It is only hoped that as EVs become more popular and initiatives like that of Zambia and DRC take off, the situation will change.

Source: https://www.dandc.eu/en/article/zambia-and-drc-hope-become-massive-producers-and-refiners-cobalt-electric-vehicle-batteries

Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) has predicted a sharp increase in the price of copper on the London Metal Exchange ( LME ) by the end of the year.

The current price of copper on the international market is 7,800 dollars per ton.

ZCCM-IH Corporate Communications Manager, Loisa Kakoma is hopeful that the price of the commodity will rise to about 9 thousand United States dollars per tonne.

On the sidelines of the Agriculture and Commercial Show at the Showgrounds in Lusaka, Ms. Kakoma however says the current price of copper is still favourable.

“With the geopolitical activities happening in Europe and the supply and demand in China and all, the COVID-19 pandemic which has had an effect on the prices on the global market.

“ As you know, the copper industry is very cyclical in nature, and all these events that are happening globally have been affecting the supply and demand,” she said.

The ZCCM-IH Corporate Communications Manager said the parastatal is drawing confidence from the soon to commence electric car battery industry which relies heavily on copper.

Zambia and the Democratic Republic of Congo signing a Memorandum of Understanding to explore Electric Car Batteries.

Meanwhile, ZCCM-IH says Mopani Copper Mines is expected to increase production to 250, 000 metric from the current 80, 000 metric tonnes per annum.

The Corporate Communications Manager Ms. Kakoma said once the expansion projects are complete, the increase in production will come into effect.

“On average per annum, we are doing about 80 thousand metric tons per annum. Once the expansion project is fully executed, it will go to a capacity of 250 thousand metric tons,” she said.

80 thousand tons of 250 thousand tons per annum.

Government through ZCCM-IH has since last year owned 100 percent shares in Mopani Copper mines.

Source: https://www.lusakatimes.com/2022/07/31/zccm-ih-predicts-a-sharp-rise-of-copper-price-on-the-lmc-this-december/