Review of Zambia’s potential for more value addition to the downstream copper chain

Abstract

Zambia copper industry has been in existence for over a century. The country contains most known reserves in Africa and holding about 6 percent known copper reserves in the world. Copper production plays a big role in the performance of the economy. Copper exports account for more than 70 per cent of total exports and 12 per cent of the country GDP. However, with the rich history of mining and copper reserves, studies have shown that Zambia still exports more than 70 per cent of her raw copper blister or copper anodes. Only 5 percent of copper cathodes produced consumed locally to further produce finished products such as copper rods and cables. The study will, therefore, focus on the potential that Zambia has to add value in the copper chain downstream. Specifically, the research focused on the downstream copper production and processing potential in respect of copper blister or anodes, copper cathodes, copper rod and cables. In addition the study reviewed whether the current mineral development policies and taxation are adequate to encourage value addition downstream and also investigate local and regional market for the final copper product. The research utilised statistical data available from Central Statistical Office, Bank of Zambia, Chambers of Mines, ZCCM-IH and international Copper Study groups to establish production, export copper and import of copper rods or cables. In addition to the above, research included visits to the only two copper fabricators ZAMEFA based in Luanshya and Neelkanth Cables Limited in Ndola. Using the statistical data collected and field visits to the fabrication industry, it was established that Zambia has a potential to add more value to its downstream copper chain by producing more than 1 million copper blister or cathodes from the available smelter facilities and though enhancement of policies and taxation incentives.