Artificial Intelligence Is Sparking A Copper-Boom In Zambia

Zambia's copper reserves are set to play a crucial role in meeting the global demand for electric vehicles and renewable energy, with the potential to become a major supplier of copper. The country's copper production has been increasing, with a CAGR of 2.68 percent between 2017 and 2022, and is expected to grow at a CAGR of 2 percent between 2023 and 2027. Major companies such as First Quantum Minerals, Barrick Gold, and Glencore are operating in Zambia, contributing over $6 billion of Zambia's annual revenue from copper exports. The industry mainly focuses on extraction and early-stage refinement, but there is great potential for growth through the development of Zambia's downstream activities. A report from the London School of Economics' International Growth Centre suggests that Zambia could attract higher levels of foreign investment in its minerals industry by improving its tax regime and deepening ties with neighbouring DRC to establish a special economic zone (SEZ) to attract investment and create a manufacturing sector. New technologies, like the AI tech being used by KoBold, could help enhance exploration activities in Zambia to boost production as the global demand for copper rises. The demand for copper and other critical minerals has been rapidly growing in recent years, with total copper mine production estimated at around 22 million metric tonnes in 2023, marking a significant increase from 16 million metric tonnes in 2010. Production is expected to increase to around 30 million metric tonnes a year by 2036 as the global demand grows. The rollout of new technologies, such as AI, will require vast amounts of copper and other critical minerals in the coming years, boosting the value of copper and making Zambia's reserves highly valuable.