Zambia’s copper reserves are a critical element for the energy transition, renewable energy and electric vehicles, with copper demand projected to rise by over 40% by 2030.
However, what spells progress for Zambia should prompt the world to think about building a truly sustainable framework. Copper already contributes over 60% to Zambia's GDP, positioning the country to benefit from soaring global demand--yet significant hurdles remain. The Kariba Dam, which supplies about 40% of Zambia’s electricity, has been operating at drastically reduced capacity due to persistent droughts.
This energy instability raises a fundamental ESG question: if the industry truly values Environmental, Social, and Governance (ESG) principles, should investors prioritize not only extraction but sustainable operations? As ever, Geopolitic prevails, and what the international community calls industry, is in fact competition and divergent approaches to ESG.
For instance, the European Union’s shift toward green energy highlights a key question: does its strategy consider the entire value chain, or just the final products? And what happens when other parties have different risk appetites with divergent ESG standards? Offer and demand... Investing in diversified energy solutions could provide Zambia with a more resilient framework. But I wonder also, how should financial institutions reconcile their commitments to sustainability with investments in water-intensive and ESG-struggling mining projects? Could this add stress to their portfolios, or they may be seen as a form of greenwashing? It is easy to trash and label companies with greenwashing without establishing clear mechanisms that permit them to operate, succeed and maintaining their workforce.
Africa holds around 30% of the world’s mineral resources essential for green technologies, but also faces the double-edged sword of resource wealth and developmental challenges. For Zambia, aligning copper mining with sustainable practices is an ethical choice anchored on demand. Geopolitics talks about opportunities within permanent global competition.
#Commodities #Trading #Africa #EU #EnergyTransition #GreenEnergy #SupplyChains Fidel Amakye Owusu Mark-Anthony Johnson #RareEarths
JOSE PAREJO & ASSOCIATES
![View organization page for JOSE PAREJO & ASSOCIATES, graphic]()
Zambia’s recent move to issue new copper mining licenses to foreign investors underscores its ambition to boost production in a sector that already contributes over 60% of the nation’s GDP. Zambia produces some 850,000 tonnes of copper per year, in a period when copper prices are surging due to its central role in the energy transition.
Regarding this licensing initiative, it has drawn interest from heavy-players such as Canada’s First Quantum Minerals, currently operating the Kansanshi mine with some 10% of Zambia’s total output. Also Saudi Arabia’s Manara Minerals, seems to be keen to invest billions to capitalize on Zambia’s untapped reserves. However, it is necessary to highlight that Zambia relies on hydropower-- circa 85% of its total electricity generation capacity-- which has been hindered by drought and subsequent energy blackouts: without a stable power supply, scaling up production could be challenging.
As the US and Gulf states race to secure critical minerals, over 70% of Zambia’s copper exports currently go to China. Given the projected demand for copper--set to double by 2035--Zambia’s position in the global supply chain is more strategic than ever. Follow us for updates on Linkedln. For deep insights and strategic advice, contact us: https://lnkd.in/dWcPdgK7
#CopperMining #CriticalMinerals #EnergyTransition #ZambiaEconomy #MiningInvestments #GlobalSupplyChain #JoseParejoAssociates
-
![No alternative text description for this image]()
