Mingomba copper deposit a big investment in Zambia?

Big discovery

Josh Goldman the President of KoBold Metals confirmed the huge size of the copper deposit which was found in Zambia. The deposit according to the year of drilling is considered to be the country’s largest copper deposit in the last 100 years. After the evaluation, KoBold Metals may consider partnerships in a $2 billion investment as it plans to fast-track- track development of a new underground copper mine.

Great potential

Based on the latest update the Mingomba deposit, whose copper ore grades are about 5%, is considered the same quality as the deposit in the Kamoa-Kakula mine (Democratic Republic of Congo), which is owned by Ivanhoe Mines and Zijin Mining Group.

Josh Goldman during Investing in African Mining Indaba stated: “The story with Mingomba is that it’s like Kakula in both the size and the grade”. Moreover, Bloomberg has indicated Mingomba deposit aa: “It’s going to be one of the highest grade, large underground mines.”

Fast-track?

Taking into consideration the demand for critical metals KoBold Metals which wanted to build the mine within a decade has put the decision on the fast track. According to Goldman during the Mining Indaba Conference: „We’re on track to do it fast and it’s going to be one of the highest grade, large copper mines”. We will make it quicker than ten years. We continue to move fast and the pace that we’re moving at is with the accelerator firmly on the floor. Moreover, Mfikeyi Makayi has informed that “mine development, including sinking of shafts, could start around 2027”. Goldman is not worried about securing the money. He states: „For a great project, there will be capital.”

In line with all perspectives

The Zambian mine could require an estimated $2 billion investment though existing infrastructure from other operators on the central African copperbelt could help reduce the capital requirement. Furthermore, according to Reuters, this project is in line with efforts taken by the US to find alternative sources of supply of critical metals such as copper, cobalt, lithium, and nickel. The metals are key to helping the transition to clean energy and accelerating growth in battery electric vehicles. In addition, this mining project is also in line with the vision of Zambia’s President Hakainde Hichilema who wants to reduce the country’s debt burden by increasing copper production to three million tonnes by 2032.

KoBold entered the project in 2022, via a joint venture with its existing owner EMR Capital, and Zambia’s ZCCM Investments Holdings Plc. It also searches critical materials with BHP and Rio Tinto at projects in Australia and Canada.

KoBold is backed by among others Breakthrough Energy, Richard Branson’s Virgin Groups, and Bridgewater Associates’ Ray Dalio