By John Chola

In a move signaling robust confidence in Zambia’s economic trajectory, President Hakainde Hichilema officially commissioned the massive US$1.25 billion S3 expansion project at First Quantum Minerals’ (FQM) Kansanshi Mining Plc on Tuesday, hailing it as a critical catalyst for national growth and a testament to successful government-investor partnership.

The launch event, attended by government officials, traditional leaders, diplomats, and industry executives, was underscored by a powerful message of mutual commitment.

Both the President and FQM CEO Tristan Pascal framed the project not merely as a mining expansion, but as a foundational investment in Zambia’s human capital and a direct contributor to national revenue funding social programs.

A Project Rescued from the Brink

President Hichilema positioned the S3 investment as a strategic rescue mission that secured the future of the Kansanshi operation.

“In fact, if this project was not conceived, today we would have been talking about what to do with this shell here. Because the mine was going to close,” he stated emphatically.

He detailed the project’s immediate ripple effects, highlighting the involvement of over 430 Zambian-owned companies as suppliers and contractors.

“Think of the income that would have never been there. Think of the jobs that those companies employ,” he said, directly addressing labour and community representatives.

The President directly challenged critics of the government’s mining fiscal policy, using FQM as a case study.

“I’ve heard from our competitors saying, we’ve given away revenue to the mine companies. Numbers don’t lie. This business is the largest single taxpayer, please,” he asserted.

He directly linked the mine’s tax contributions to his administration’s flagship policies.

“It means that the free education that we have embarked on… a good portion comes from First Quantum. It means the desks we’re buying for our school children, a good portion of that comes from First Quantum. Let’s put context to these things.”

Ambition for a Copper Superpower

Looking forward, President Hichilema reaffirmed his ambitious target for Zambia to produce three million metric tons of copper annually, a goal he admitted was initially met with skepticism.

“This country has never achieved a million tons. You are talking about three million tons? Really? I said, guys, we have to think big,” he recounted.

He argued that the target is achievable by fostering several world-class mines, pointing out that FQM’s group production from its Zambian units is set to reach nearly 500,000 metric tons—half a million from “one business.”

“If we had 10 of First Quantums, how many millions of metric tons of copper would we produce? Arithmetic, five million. Well over our target of three million,” he said, outlining a vision where driving production at assets like KCM, Mopani, and the new Mingomba project would make the goal a reality.

He also committed to ongoing reforms to improve the investment environment, addressing key industry pain points.

“We are working on the difficult issues, Cadaster, all of those issues… We will continue improving the macro environment,” he promised, citing declining inflation and currency stability as evidence of progress. He specifically pledged to address a critical shortage of sulphuric acid, a key processing reagent, calling it a “priority.”

FQM: A 30-Year Partnership Culminates in S3

In his address, FQM CEO Tristan Pascal celebrated the launch as the culmination of a 30-year partnership with Zambia and the delivery of a promise made at the Mining Indaba in 2022, shortly after President Hichilema took office.

“The S3 expansion project is a bold US$1.25 billion investment in Zambia’s mining future… It reflects our unwavering confidence in Zambia’s future, its leadership, its policies and, above all, in the talent and capability of its people,” Pascal stated.

He echoed the President’s focus on local content, revealing that in 2024 alone, more than 535 local companies were involved in the S3 build, with over 430 being Zambian citizen-owned.

“The true measure of S3 will not be about tonnes of copper production, but in lives changed and improved,” he said.

Pascal detailed the project’s technical specs: a new concentrator designed to process 25 million tonnes of ore annually, extending the mine’s life by 20 years to beyond 2044.

The project will boost FQM’s total Zambian copper production to between 450,000 and 500,000 metric tons per year.

He also highlighted FQM’s corporate social investments in education and health, sharing an anecdote about a top-performing student from the village of Kisasa who is now attending university thanks to the company’s scholarship support—a story President Hichilema later warmly acknowledged.

The Engine Room: What S3 Delivers

The S3 project is a feat of engineering and economic impact:

Investment: US$1.25 billion.

Capacity: A single-line concentrator adding 25 million tonnes of annual processing capacity, taking Kansanshi’s total to 53 million tonnes.

Jobs: Created 2,500 jobs at peak construction and will sustain 900 permanent, full-time roles.

Technology: Incorporates cutting-edge automation and AI for predictive modelling, a pioneer in the global copper industry.

Power: Consumes 50MW, which FQM confirms is sourced without impacting domestic household supply.

The commissioning of S3 marks a significant milestone for Zambia, representing the largest single mining investment since the country’s recent debt restructuring.

It stands as a powerful symbol of the government’s intent to leverage its mineral resources for broad-based economic growth and a test case for its renewed partnership with the global mining industry.