KANSANSHI MINE: Responsible Copperbelt Mining to Reinforce Zambia’s Global Significance
First Quantum Minerals is busy expanding its Kansanshi Mine operations with various projects designed to increase output responsible as the government calls for more and more copper to be unearthed. But doing things responsibly and with sustainability in mind is the goal for this historically successful company.
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The global energy transition continues to take hold across all nations. Resistance is nothing compared to the level of ambition and uptake. Renewable energy rollout, and all the associated infrastructure, combined with traditional growth of electrification and communication assets have helped to drive insatiable demand for natural resources, and atop those lists are elements such as copper, lithium, silicon, and manganese.
Of course, Africa is a major contributor of these essential materials and its bountiful natural resources continue to drive progress in the likes of electric cars, modern computing technology, and green energy generation equipment.
Copper in particular is in the spotlight right now. It is required for effectively carrying electricity and has electrons arranged in such a way that free movement across its body provides improved conductivity.
In Africa, the copperbelt through Zambia and the DRC is known as a global hub for copper mining. Rich is deposits, and loaded with mineral wealth, global miners have long scrambled to take advantage of the area since 1895 and the promotion of the sizeable affluence that laid beneath the soil.
One of the most important mines in Zambia is the Kansanshi Mine in Solwezi in the country’s north. With Zambia recognised as one of the world’s most important nations for mining activity – mainly because of activity on the copperbelt – Kansanshi has realised significant investment over the years, and there is more to come as its Canadian owners, First Quantum Minerals (FQM), looks to extend its life significantly.
The investment makes sense with the country labelled as the 11th most important mining destination in the world, with mineral production volume estimated at $21.7 billion annually.
Kansanshi employs more than 13,000 people, mostly local Zambian people, and produced 41,507 tonnes of copper in Q2 2024 alone. The mine covers a vast site with much state-of-the-art technology used to drive efficiency.
CHALLENGING TIMES
The copper price currently sits at a decade long high as demand continues to outstrip supply, and FQM is aware of its chance to provide product for a market that needs it.
CEO Tristan Pascall said: “We are already halfway through the 2024 year, and it has certainly been a challenging period for First Quantum. The copper price has been surging and we have had challenges in Zambia with the drought and the situations with food security and power.
“During the second quarter, we continue to see that world markets understand the scarcity of copper available for world supply chains; not just for development of renewable energy and the transition to greener economies but also in AI data centres and the continued upliftment of societies through greater electrification and communications,” he added. “However, copper mining has to be done responsibly and it’s a contingent on all of us to ensure good standards of safety, environmental performance, and community engagement. At First Quantum, we have the projects but also the capabilities, skills and expertise to deliver those projects into the market.”
Recently, the company partnered with Hitachi Construction Machinery to deploy a battery powered dump truck – the first in Zambia – in a bid to reduce emissions. Initially, the dump truck will be used on a trial basis – beginning in June 2024 – to understand the viability of an ultra-large full battery rigid frame dump truck on site. Currently, the company is excited by potential, mainly encouraged by the fact that the dump truck has not required any scale down in payload or production and the truck has helped contribute to FQM’s zero emissions goal.
With Zambia largely reliant on renewable energy, FQM is keen to use its position to contribute in a meaningful way, weaning Kansanshi from emissions producing fuel as quickly as possible. Earlier in 2024, the company – the largest power user in the country – announced that it was partnering with international companies to bring further capacity to the national grid. Currently, the company spends $250 million on electricity from State provider Zesco annually. And President Hakainde Hichilema has put out a vision to increase coper production to three million tonnes per year. FQM was clear that more green power would be required. Under exploration now is a 430 MW hybrid solar and wind energy project (230MWp solar PV and 200MW wind) with offtake agreements in place to help build the grid further. This would follow progress from the end of last year when FQM signed a PPA for Kansanshi over a 10-uyear period that helped to solidify expansion plans.
FORWARD THINKING
Growing capacity at the mine is key for FQM, and its S3 expansion project is expected to be complete by mid-2025. A $1.25 billion investment, the pit and fleet will be expanded and a new processing plant will be installed alongside upgrade to the smelter. A production increase of 200,000 tonnes per year will be the result, extending the life of mine into 2040. Encouragingly for local stakeholders, FQM said that it saw Kansanshi and Zambia as a cornerstone of its portfolio over the past 20 years and wanted to see this continue for the next two decades.
“We remain highly optimistic about the prospects and outlook for the mining industry in Zambia, and our unwavering commitment to Kansanshi is demonstrated through our substantial investments in the S3 project, smelter upgrade, mine fleet enhancement and other strategic initiatives totalling over $1 billion over the next two years,” said COO Rudi Badenhorst.
All of this investment is, of course, about longevity and sustainability in Zambia, and that comes with a respect for the environment. Reducing emissions, increasing efficiencies, and supporting the wider energy transition with the products that are mined successfully make FQM and Kansanshi an example to follow for many.
“We are committed to sustainable and responsible mining practices. We focus on innovation, efficiency and environmental factors which enable us to meet the growing demand for copper while minimising the impact on the planet,” the company states.
As one of the world’s top 10 copper producers, the company will retain and grow its position by sticking to its core offering of providing a tangible benefit from everything we do for investors, employees and the many communities that host operations.