Electric car demand pushes Zambia Copper forecast to 1-Million metric tons in 2018
AFRICA’s second largest copper producer Zambia is expected to produce 1- million metric tons of the red metal this year. This target translates to a 17.4% increase from the 2017 levels reported of 853,789 metric ton. The electric car era will require more copper than anticipated and this has caused the Ministry of Mines to raise the 2018 forecast to a million tons at a time when the red metal price is attractive enough on the London Metal Exchange and also that Southern Africa nation has experienced improved power generation.
A Zambian Mines Ministry official said projects such as a new shaft by Mopani Copper Mines - MCM - owned by Glencore and an expansion project by China Non-Ferrous Africa Mining - NFCA - would start production this year and further boost copper output in 2018 and beyond.
Zambia rally’s behind DRC which is Africa’s number one having produced 6.06% higher output to 1.09million metric tons in 2017. DRC expected to produce higher volumes after discovery of a massive deposits in the Kakula Kamoa area operated by Ivanhoe mines owned by Friedman.
“With electric cars whose major ingredient is copper coming on the market, demand for the metal is expected to remain high and this is a big incentive for mining companies,” The Ministry of Mines said.
Copper is trading for USD6,660 a metric ton on the London Metal Exchange a weakening it took after the US Fed hike rates earlier last week.