Kansanshi Mining, a subsidiary of First Quantum Minerals (FQM), reported impressive financial results for the first half of 2024, buoyed by higher copper prices and improved ore grades, despite ongoing electricity challenges in Zambia.
The company achieved a net profit of $117 million, marking a significant recovery from a net loss of $1.1 million during the same period last year. Income tax contributions surged to $56 million, up from $3.6 million in 2023.
Revenue for the half-year rose by 25%, reaching $927 million. This growth was primarily driven by a 28% increase in copper prices and a 15% rise in production, with the mine producing 72,980 tonnes of copper.
Anthony Mukutuma, FQM Director for Zambia, emphasized the company’s resilience, stating, “Our strong performance this year reflects our operational agility and resourcefulness in navigating Zambia’s power crisis. The progress on the Kansanshi S3 Expansion and our response to power disruptions demonstrate our commitment to maintaining operations and supporting Zambia’s mining and energy sectors.”
The Kansanshi S3 Expansion project in Solwezi is on track, with significant equipment installations, such as the SAG mill and primary crusher, advancing as scheduled. Expected to be completed by mid-2025, this expansion will enhance the company’s production capacity and ensure future growth and economic contributions to the region.
For 2024, Kansanshi projects copper production between 140,000 and 150,000 tonnes, alongside 65,000 to 75,000 ounces of gold.
Zambia’s mining sector has faced considerable challenges due to a nationwide power crisis, exacerbated by drought. Power supply reductions from ZESCO have reached 40% since July.
In response, First Quantum has secured 193 MW, or 52% of its power requirements, from regional suppliers through the Southern African Power Pool. This strategic move has minimized operational disruptions, allowing Kansanshi, Sentinel, and Enterprise mines to operate effectively.
