Exploration and expansion of new and existing mining operations in the Democratic Republic of the Congo (DRC) and Zambia could see copper production in the two countries reach seven million tonnes per annum (Mtpa) by 2030 — an increase of nearly three Mtpa from current levels.
“The DRC officially became the world’s second-largest copper producer last year, overtaking Peru,” says Duncan Bonnett, a partner at Africa House.
“It is staggering how much production has increased over the past 15 years.
"In 2010, the DRC was producing less than a million tonnes per year, but in just over a decade, it has tripled output to 3.1 Mtpa.”
According to Bonnett, the high-quality ore grades and relatively simple mining conditions in the region are key factors behind the surge in production.
On the Zambian side, recent government policy shifts have also played a crucial role.
“About four years ago, Zambia conducted a review of why copper investment had stalled and benchmarked its tax regime against the DRC’s,” said Bonnett.
“Zambia has traditionally had far better infrastructure and accessibility, but its tax policies were out of sync with investor expectations.
"Since the review, the government has stopped chasing away foreign miners and opened dialogue, which has led to a $3-billion commitment to new projects.”
- Read the full article in our Freight Features edition on "The Copperbelt", out this Friday, 11 April.
