By: Mining review Africa

President Hakainde Hichilema has officially commissioned the S3 Expansion Project at Kansanshi Mining PLC, a subsidiary of First Quantum Minerals (FQM), marking a transformative moment for Zambia’s mining industry and economic trajectory.

Backed by a landmark investment of US$1.25 billion—the largest in the sector in recent years—the project signals renewed momentum for national development.

The S3 Expansion will significantly extend the life of the Kansanshi mine into the 2040s, increase production capacity, and create substantial employment opportunities.

The initiative includes the expansion of the mining pit and fleet, construction of a new, state-of-the-art processing plant, and a US$115 million upgrade to the Kansanshi smelter. Together, these efforts will enhance Zambia’s capacity for in-country mineral processing and value addition.

During construction, the project generated 1,800 jobs, and it is expected to create around 800 additional permanent positions. This will deliver a major boost to both local and national employment.

President Hichilema described the investment as a powerful vote of confidence in Zambia’s economic future.

“This project symbolises private sector confidence in this economy, in this country. Nobody puts US$1.25 billion into a project in a place they do not trust or believe in,” he stated.

He reaffirmed his administration’s dedication to fostering a stable, investor-friendly environment—key to reviving the S3 project after prior delays.

The President also emphasised that the expansion aligns with Zambia’s broader economic goals, including the ambition to scale copper production to three million tonnes annually.

FQM CEO Tristan Pascal also addressed the event, underscoring the company’s enduring commitment to Zambia.

“The S3 Expansion is a bold US$1.25 billion investment in Zambia’s mining future. But this is more than just a number—it reflects our strong belief in Zambia’s leadership, policies, and most importantly, its people,” he said.

Pascal noted that the expansion will increase copper output from FQM’s Zambian operations to between 450,000 and 500,000 tonnes per year. The new processing plant is designed to treat 25 million tonnes of ore annually, incorporating cutting-edge technology, automation, and sustainability features.

He also highlighted the company’s focus on skills development, community investment, environmental responsibility, and education. FQM-supported schools have seen students progress to university, and many Zambians involved in the project’s construction phase gained valuable skills.

“At peak construction, over 2,500 Zambians worked here, many of whom developed skills that will last long after S3 is complete. The plant’s advanced technology and automation aren’t replacing jobs—they’re creating new roles and upskilling our workforce,” Pascal added.

He further emphasised FQM’s adherence to global best practices in environmental management, including tailings handling, water conservation, dust control, and land rehabilitation.

The company continues to invest in technologies that reduce emissions and improve energy efficiency, reinforcing its belief that mining must contribute meaningfully to local communities.

Minister of Mines and Minerals Development, Paul Kabuswe, described the S3 Expansion as a vital catalyst for economic revitalisation and employment.

“This is the first fruit of economic growth—direct jobs for Zambians. When workers are paid, they spend, and money begins circulating in the economy. That’s when the benefits become visible,” Kabuswe said.

He credited government policy reforms for enabling the investment, contrasting the current growth forecast—over 6 per cent for 2025—with the economic downturn inherited in 2021.

“The clarity of policy and the spirit of collaboration have been key to unlocking this investment,” he noted.

Once fully operational, the S3 Expansion will nearly double Kansanshi’s ore processing capacity from 28 million tonnes to approximately 53 million tonnes annually.

This is crucial for offsetting declining ore grades and sustaining strong copper production over the next two decades. The development also includes the opening of a new mining pit, the South East Dome, contributing to the mine’s extended lifespan.

Beyond job creation and increased production, FQM sees the project as a broader economic catalyst. The construction and service provision phases have engaged over 430 Zambian-owned companies, stimulating widespread economic activity and supporting local entrepreneurship