Zambia eyes mining surge as $1.25bn Kansanshi boost kicks in
The mining sector in Zambia remains the backbone of its economy, contributing to job creation and economic growth
In what has been described as a pivotal moment for the mining sector in Zambia and for its economic recovery, the country’s President Hakainde Hichilema has officially commissioned the S3 Expansion Project at Kansanshi Mining PLC, a subsidiary of First Quantum Minerals.
The project represents a $1.25 billion investment, the largest single injection into the country’s mining industry in recent years.
Johnstone Chikwanda , C&I Energy+Storage Summit Zambia Advisory Board member and Global Ambassador of Energy and Climate Change for the Forum of African Traditional Authorities (FATA) speaks to Programme Manager Babalwa Bungane. The C&I Energy+Storage Summit Zambia, a landmark event for the SADC region, is set to launch on 27-28 August at the Pamodzi Hotel in Lusaka
What the expansion entails
The S3 Expansion is poised to extend the lifespan of the Kansanshi mine into the 2040s while enhancing production capacity and creating employment. The mine is 10km north of the town of Solwezi in the North Western Province of Zambia.
It includes:
- expansion of the mining pit
- an upgraded mining fleet
- a new state-of-the-art processing plant
- a $115 million smelter upgrade, bolstering Zambia’s capabilities in mineral value addition.
During the construction phase, the project generated 1,800 jobs. Upon completion, it is expected to yield an additional 800 permanent roles.
Zambia driving private sector partnerships
Hichilema described the expansion as a demonstration of private sector confidence in Zambia’s improving investment climate.
“This project symbolises private sector confidence in this economy, in this country. Nobody puts $1,250,000,000 in a project located in a country and an environment you have no trust in, you have no confidence in,” he said.
He emphasised that this project underpins the national growth agenda, supporting Zambia’s goal of raising annual copper production to three million tonnes.
First Quantum Minerals CEO Tristan Pascal reaffirmed the firm’s long-term commitment to Zambia.
“The S3 Expansion Project is a bold $1.25 billion investment in Zambia’s mining future… This reflects our unwavering confidence in Zambia’s future, its leadership, its policies and above all in the talent and capability of its people.”
Increase in copper production
He added that the expansion will increase copper production to between 450,000 and 500,000 tonnes, with the new processing plant designed to treat 25 million tonnes of ore annually.
“At the peak of construction, over 2,500 Zambians worked here, many gaining skills that will serve them long after S3 is complete. The new processing plant, designed to trade 25 million tonnes of ore annually, incorporates cutting-edge technology, automation and sustainability features that make S3 one of the most advanced copper projects on the continent.
“And I’m reminded that we’re already deploying automation in the mine, not to the detriment of employment, but to enhance it, in that our automated drills at Sentinel and soon to come to Kinshasa create new opportunities for our employees to expand their capabilities.
“The firm also prioritises modern technologies and key programmes to ensure water conservation, dust suppression, emissions reduction, rehabilitation and educational support for local schools,” said Pascal.
Minister of Mines and Minerals Development, Paul Kabuswe, hailed the expansion as a key driver of job creation and economic revitalisation.
He noted government policy reforms were instrumental in unlocking such investments and credited them with supporting a projected a more than 6% economic expansion in Zambia this year.
Importance of mining sector to Zambia
Zambia’s mining sector remains the backbone of its economy, underscored by recent national data:
- Copper dominates exports, constituting around 70% of Zambia’s export earnings, and the country is a leading producer of emeralds globally.
- The extractive industries contribute approximately 9% to GDP, from 72% of exports, and account for 44% of government revenue, while employing about 2.4% of the workforce.
- In 2024, Zambia’s economy expanded by 4%, buoyed by a mining sector resurgence despite drought and power outages.
- Copper output rose by 12% in 2024, reaching approximately 820,670 tonnes, as production rebounded across key mines.
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The S3 Expansion is slated to nearly double Kansanshi’s ore processing capacity – from 28 million to approximately 53 million tonnes per year – offsetting declining ore grades and securing copper output for decades.
The project also includes development of a new mining pit – South East Dome – and engaged more than 430 Zambian-owned companies.
Cover photo: All systems go as President Hakainde Hichilema turns the switch on at the S3 Expansion Project at First Quantum Minerals’ subsidiary, Kansanshi Mining PLC. Source: First Quantum Minerals
