Although the growth prospects for Zambia’s mining sector remains positive for this year, amid rising copper prices and improved electricity supply, a worsening regulatory environment may negatively impact on the country’s copper production in the coming years, warns BMI Research.
“We expect Zambian copper production growth to accelerate in the coming months as copper prices and domestic power supplies improve.
On March 20, the Zambian Ministry of Mines announced its targeted copper production levels of more than a million tonnes, up from 755 000 t in 2017,” BMI reports.
BMI expects Zambian copper production growth to average 8% this year, which will amount to production of 815 000 t – up 2% on that produced in 2017.
The primary driver behind rising copper production in Zambia this year will be the positive copper price environment.
Within a generally strong performing industrial metals complex, copper prices have risen more than 21% in the past 12 months –copper being the best performing base metal after nickel.