By Jane Chanda
Economist Emmanuel Zulu says Zambia failed to capitalise on the 3.2 percent increase in copper prices on the London Metal Exchange owing to the 6.4 percent reduction in the country’s copper export earnings in September 2024, on account of the current power deficit affecting production in the mining sector.
He said that specifically, refined copper export earnings dropped from K16.4 billion in August 2024 to K15.4 billion in September 2024, with volumes decreasing by 2.0 percent from 64.3 thousand metric tonnes to 63.0 thousand metric tonnes.
In an interview with Daily Revelation on Monday, Zulu said the reduction gave a true picture that the reopening of Mopani and Konkola Copper Mines (KCM) was yet to take full scale of production.
According to him, this slowdown had prevented Zambia from capitalising on the 3.2 percent increase in copper prices on the London Metal Exchange (LME), which rose from US$8,963.7 per metric tonne in August 2024 to US$9,254.5 per metric tonne in September 2024.
When asked about the impact of power outages on Zambia’s mining sector, Zulu further said that the outages had reduced output hours, hindering the country’s ability to benefit from the increased copper prices.
“This is quite worrying but it reveals a true picture that the reopening of Mopani and Konkola Copper Mines (KCM) is yet to take full scale in terms of benefiting the country in output volumes,” he said.
The economist noted that it may take time for Zambia to realise the full benefits of Mopani and KCM’s reopening.
“This translates to the notion that production in these two giant mines may take longer. Probably we may start seeing the full benefits in the second half of 2025,” Zulu said.
Zulu also expressed his hope for sustained high copper prices.
“Copper prices will remain high until Zambia increases its copper production,” he said.
He claimed his sentiments reflected his confidence in Zambia’s potential to leverage its copper resources for economic growth, despite current challenges.
According to a statement by Zambia Statistics Agency (ZamStats), the cumulative volume of refined copper exported from January to September 2023 was 594.7 thousand metric tonnes, while exports during the same period in 2024 stood at 574.5 thousand metric tonnes, representing a 3.4 percent decrease.
The report stated that the decline in copper exports mirrored the current challenges facing Zambia’s mining sector, including power shortages and reduced production capacity. The decrease also underscored the need for diversification and investment in other sectors to mitigate the impact of fluctuations in global copper prices.
The statement further indicated that, Copper had historically been the backbone of Zambia’s economy, but its vulnerability to global market trends and domestic production challenges highlighted the importance of exploring alternative revenue streams, adding that efforts to boost economic diversification, improve energy infrastructure, and enhance mining efficiency were crucial for Zambia’s long-term economic stability and growth.
