Electric vehicles will trigger high copper demand

THE introduction of electric vehicles in Zambia can grow the economy because prices of copper are likely to go up on the international market due to the increase in demand, says local economist Maambo Haamaundu.

Mr Haamaundu told the Daily Nation in an interview that the vehicles were likely to bring about increased demand for copper and ultimately a rise in the price of the commodity.

He observed that the rise in the price of copper would help in the sustainability of Zambia’s economy.

He said that the economic growth of Zambia appeared bright as the mines would also drastically contribute to the gross domestic product (GDP).

“The rise of copper price on the international market is a possibility that cannot be ruled out. It is obvious that there will be high demand for copper because of the introduction of electric vehicles.

“The modern vehicles will enable Zambia benefit more from its mineral resources than it has in the past years,” Mr Haamaundu said.

He said that in the direction that the world was now heading, there was a possibility that copper prices would be much higher than what was currently obtaining on the international market.

Mr Haamaundu also said the move by Government to reject the offer by First Quantum Minerals (FQM) to buy off 17 percent shares in ZCCM-IH was critical for the nation.

He said that the State needed have a stake in all mining houses to act as microscope and fully understand what was obtaining in the industry.

He said the representation of Government in the mining houses would help it to have critical information in the sector.