Located in the central southern part of Africa with a population of over 18 million people, Zambia has become the largest Nickel mining destination in Africa.
The 7th largest copper producing nation in the world reaffirmed its position on the world mining map on 26th July 2022 when his excellency President Hakainde Hichilema commissioned the opening of a Nickel mining operation located in Kalumbila, in the north-western province of Zambia, marking a key shift in the country’s mining sector.
The new mine is now the largest Nickel mine in Africa. It is expected to produce about 30,000 tones. First Quantum Mines (FQM), a prominent private mine in the country will invest about $100 million creating over 700 direct jobs.
What is Nickel?
Nickel is a highly combustible metal that can withstand over 1000 degrees when heated. It is corrosion resistant, tough and is able to be recycled. It is essential for building and manufacturing.
Its ability to withstand ultra-high degrees makes it suitable to be used for many years. Nickel is used in various environments such as facilities used to generate power and in the manufacturing of jet engines. Nickel can also be alloyed with other metals such as copper to produce even stronger metals.
What this means for Zambia
The opening of the Nickel mine will create jobs for the Zambian people. Significantly contributing to the reduction of unemployment in the country.
As Nickel is a very strong and robust metal with various applications, this would lead to a positive contribution to sustainability as it is able to be recycled – therefore contributing to the sustainable development goals (SDGs).
Furthermore, as Nickel is a hygienic metal, the production would contribute to the green climate and reduced environmental effects – hence positively contributing to environmental, social and governance (ESG) goals in Zambia.
Forward-looking Strategy, as Nickel is a key component in the production of batteries for electric cars. The future of the world, through the development of technology will push gasoline powered vehicles off the road.
Electric cars will be more efficient, with maintenance costs being cut by more than 80%, most people will opt to have them. Therefore, as the demand rises for electric vehicles, so will the demand for batteries, hence stimulating demand for Nickel.
Subsequently, this will also contribute to the realization of the Zambia and Democratic Republic of Congo (DRC) cooperation agreement to facilitate the development of value chain in electric battery manufacturing and clean energy sector signed earlier this year.
Finally, the production of Nickel by Zambia, will stimulate foreign direct investment and will also cause an appreciation of the kwacha in the medium to long term. The private sector is encouraged to participate in the stimulation of foreign direct investment, thereby positively contributing to the gross domestic product (GDP).
