Anglo American Considers Return to Zambia

President Hakainde Hichilema has announced that British mining giant Anglo American is strongly considering a return to Zambia, twenty years after the company stopped operating in the country.

Writing on Facebook, President Hichilema said he had hosted a delegation from Anglo American at State House, including the company’s CEO Duncan Wanblad. 

“We are glad to note the renewed interest by Anglo American Corporation to invest in our mining sector after close of 20 years of their exit,” the President wrote.

 “The 3 million tons annual copper production target we have set for ourselves will require partnerships with reputable mining companies like Anglo American corporation.” 

President Hakainde Hichilema speaking with Anglo American CEO Duncan Wanblad. 

Since President Hichilema took office in 2021 there has been an influx of foreign investments into the mining sector. In 2022, Canadian mining company First Quantum Minerals announced plans for a $1.25 billion expansion to its Kansanshi copper mine in North Western Province, as well as $100 million to operationalise its Enterprise nickel project.

These investments were followed by an announcement that the Bill Gates-backed Kobold Metals could spend $2.3 billion to build a new mine at Mingomba, Copperbelt Province, which is thought to be the largest copper discovery in Zambia for more than a century. Then, in October, Barrick Gold declared its decision to invest a further $2 billion at its Lumwana mine facility.

Increasing Zambia’s copper output is a cornerstone of President Hichilema’s plan for economic development, with ambitious targets to expand production to 3 million tons per year in the next decade.

 It is currently unclear where Anglo American is likely to resume its operations however, they might partner with the Hichilema administration on one of the 40 government-reserved permits in which the state retains a 30% share in future critical mineral mines. This share, which was announced over the summer, will not affect current mining operations in the country and is intended to increase the benefit of Zambia’s mining sector to ordinary citizens.

Since President Hichilema took office, Zambia’s mining sector has become a highly sought after investment opportunity. His administration abolished the so-called ‘double tax trap’ on mining royalties and has normalised relationships with key players including Vedanta Resources, which soured under the previous administration. The country is now seen as a key player in the shift to green energy, with abundant supplies of copper, cobalt and other critical minerals needed for electric batteries and transmission cables.