Zambia’s copper mining industry is on the brink of a major transformation thanks to groundbreaking AI technology that has uncovered massive new copper deposits. This discovery, led by KoBold Metals, could make Zambia a key player in the global surge for copper, vital for electric vehicles and renewable energy. With potential production to fuel millions of EVs, Zambia is attracting global attention and investment. However, to fully harness this boom, the country needs to invest in downstream industries and improve its investment climate. This tech-driven mining revolution could turn Zambia into a critical hub for green energy resources, reshaping its economy and the global energy landscape.
The world’s mining and energy corporations are taking an interest in Zambia due to its considerable potential for vital resource extraction. Massive copper reserves have been found in Zambia thanks to innovative technologies, which could significantly boost the nation’s mining sector over the coming ten years. With the resources required for the vast clean tech pipeline potentially coming from this find, Zambia might become a vital hub for minerals for years to come.
KoBold Metals, a digital exploration firm, has been creating sophisticated artificial intelligence (AI) technology for several years to improve mineral exploration operations worldwide. Using this technology, KoBold stated this month that it has probably found the largest copper discovery in over a decade. The discovery in Zambia may help produce 300,000 tons of copper a year, which would be profitable in the billions of dollars. In KoBold’s finding zone, if expanded, two decades of production might yield enough copper to produce about 100 million electric cars (EVs). An independent business agreed that there is a great deal of promise for applying AI technology to exploration efforts, confirming KoBold’s assertions. By the early 2030s, KoBold wants to start producing copper from a $2.3 billion mine that it plans to develop in Zambia reports OilPrice.com.
With nations all over the world boosting their capacity for renewable energy and implementing clean technologies, the demand for copper and other essential minerals has been rising quickly in recent years and does not appear to be slowing down. The predicted total production of copper mines in 2023 was around 22 million metric tonnes, a substantial rise from the 16 million metric tonnes in 2010. With the rise in worldwide demand, production is projected to reach about 30 million metric tonnes annually by 2036. There are worries, meanwhile, that the rapidly increasing demand for the crucial mineral will be met by this rise in supply.
Along with the growth of renewable energy, emerging technologies like artificial intelligence are predicted to lead to a large increase in the need for copper. In the upcoming years, data centers will need enormous amounts of copper and other essential minerals. This is anticipated to significantly increase copper’s value. Demand growth and supply constraints, according to Bank of America, could drive up copper prices by 11% to $5.44 per pound by 2026. This is terrible news for producers of renewable energy, but it’s excellent news for nations like Zambia that have undeveloped copper reserves.
Exploration procedures that have not altered much over the past century are being advanced by new technology that is helping mining businesses better their prospects. Additionally, new technology could help American corporations increase their mining capacity and secure the energy security of the nation, as the U.S. is concerned about its strong reliance on China for essential minerals. “The more you realize how dependent we are on these technologies, the more you ask: How the hell were we so slow to the fact that we needed vast amounts of raw material to make it all possible?” said Connie Chan, a partner at the venture capital company Andreessen Horowitz.
Based on current estimations, Zambia ranked as the tenth largest producer of copper globally in 2023, accounting for approximately 4% of global production and experiencing a 4% increase in output from 2022 to 2023. The country in southern Africa saw a CAGR of 2.68 percent growth in production between 2017 and 2022, while between 2023 and 2027, a CAGR of 2 percent is predicted. The world’s top producers of copper are currently China, Chile, Peru, the Democratic Republic of the Congo (DRC), and Chile, but Zambia has a lot of potential to expand its resources even more. Barrick Gold, Glencore, and First Quantum Minerals are a few of the biggest producers in Zambia.
Zambia receives about $6 billion in revenue each year from copper exports. Nonetheless, recent research from the International Development Centre (IGC) at the London School of Economics indicates that there is significant development potential. Currently, the sector mostly focuses on extraction and preliminary refinement; however, by expanding Zambia’s downstream operations, more value might be added. Ten mines in Zambia’s Copperbelt province provide the majority of the nation’s copper, and fresh finds are gradually extending output to other parts of the nation. The IGC proposes that Zambia could improve its unpredictable tax system, which has historically discouraged investors, to draw in more foreign investment to its minerals sector. To draw investment and develop a manufacturing sector that would add more value, the IGC report also urges Zambia to strengthen its relations with the neighboring Democratic Republic of the Congo (DRC) and establish a special economic zone (SEZ).
After several productive years, Zambia’s copper mining sector is anticipated to expand rapidly in the upcoming years. As the need for copper rises globally, new technologies like the AI technology KoBold is using could assist improve exploration efforts in Zambia and increase production. Furthermore, there exists ample opportunity to enhance the industry’s worth by expanding its downstream operations and fostering closer cooperation with neighboring companies in the Democratic Republic of the Congo.
Recently, GreatGameInternational reported that in the past year, thieves in Seattle have stolen over 100 electric vehicle charging cables, driven by high copper scrap prices.
