A sum of $150 million has been committed by KoBold Metals, a start-up backed by a coalition of to support the development of Mingomba copper-cobalt mine in Zambia.
The deal comes as the United States seeks to reduce its dependence on China by developing domestic electric vehicle battery manufacturing, and looks to Africa as an alternative source of battery metals.
Copper production
Zambia targets to boost the country’s copper production to 3 million tonnes by 2032, from around 850,000 tonnes currently. As Africa’s second-largest producer of copper, Zambia is highly dependent on mining.
Mingomba copper-cobalt mine project is based in Chililabombwe on the Copperbelt. the project will be a joint venture with Australian private equity firm EMR Capital and Zambia’s state-backed mining company ZCCM-IH, and has the potential to become one of the world’s top-tier mines.
Mingomba contains 247 million tonnes of ore with an average grade of 3.64% copper. This figure represents about six times higher grades than those found in Chile, the world’s top copper producing nation, according to KoBold.
The mine development would be a major win for Zambia’s President Hakainde Hichilema, who has set an ambitious copper production target of 3 million tonnes a year by 2032, from around 850,000 tonnes the country produces currently.
“Our message to the world is that Zambia is here, and is open for business. This investment today is not about KoBold, it’s not about ZCCM, it’s not about Zambia, it’s about all of these, and the rest of the world, as we grapple with climate change,” said Hichilema.
