Zambia is facing a significant loss as copper production drops to 690,000 tons in 2023 from over 800,000 tons in 2021 resulting in a loss of approximately $1 billion ($905, 501, 318) for the country at a time when copper prices are selling at about $8927 per ton.
This is a significant blow to Zambia’s economy, as the mining sector accounts for around 70% of the country’s export earnings. The drop in copper production have had a ripple effect on the nation leading to further economic challenges for the country.
The annual Copper production continued dropping and now stands at 690 thousand MT from 763, thousand in 2022, and over 800,000 in 2021 in 2023 representing about 64,721, and 101,434 declines in 2022 and 2023 respectively.
According to official annual copper production figures obtained by the Zambian Business Times – ZBT from the Mines and Minerals Development Ministry, it has been revealed that the annual copper production has dropped to 690 thousand metric tons (MT) from 763, thousand MT in 2022 to 698, 566 MT in 2023.
This is a drop of about 101, 434 MT compared to the over 800,000 MT copper production which was produced in 2021.
This marks a significant decline in copper production, which has been the backbone of the country’s economy.
The drop in copper production is expected to have far-reaching impacts on the economy, particularly as the country relies heavily on copper exports.
the decrease in copper production is a cause for concern for our country’s economy which rely heavily on copper exports. The drop in production is likely to lead to inflationary pressures, budget deficits, and a decrease in employment opportunities.
The decrease has been largely attributed to delays in recapitalizing Mopani Copper Mines – MCM and Konkola Copper Mines – KCM. These mines have been struggling due to a lack of investments, which has resulted in a decline in copper production. With now new pledged investment in the two mines it is hoped that the production will get back to normal as this has not only affected the mining sector but has also had a significant impact on the overall economy of Zambia.
The impact on the economy can already be seen as the country’s budget deficit has widened, and inflation is expected to rise further. This is already causing concern for the government, as they struggle to balance the budget and maintain economic stability.
The continued decline in copper production in Zambia is a cause for concern, and its impact on the economy is already being felt.
