Lunda a boost for USA’s critical mineral imports from Zambia

Lunda a boost for USA’s critical mineral imports from Zambia

Lunda Resources is a potential critical mineral powerhouse in Zambia.   

By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine

USA based Lunda Resources’ venture in Zambia is set to boost copper and cobalt exports from Zambia to the USA.

Two years ago, Zambia exported more than USD51.3-million worth of refined copper to the USA. Then the USA was only the fourth-largest destination for Zambian copper exports following Switzerland, India and China (tradingeconomics.com).

Those numbers are expected to drastically change in three to five years’ time as large new mining projects with the USA as main off-takers start coming online. Zambia plans to increase copper production to one-million tons by 2027.

Railway line will increase capacity

Moreover, the new 1,289km long Lobito railway line will ensure increased capacity and reduce the time it takes to export copper/cobalt from the hinterland through Angola to the Port of Lobito where it will then be shipped to America.

Last week Mumena Mushinge, chairman of Terra Metals and newly appointed chair of Lunda Resources said that the company will be using the Lobito Railway Corridor as its export route.

Last year the Lobito Railway secured long-term agreements with major mining entities like Trafigura and Ivanhoe to transport substantial quantities of minerals from the DRC Zambia to the Atlantic coast.

Concentrator on track

Construction of Lunda Resources’ 240-ton-per-hour copper and cobalt concentrator in Zambia is already underway.

Mushinge says that the concentrator will be commissioned in September.

“The facility will process high-grade ores to supply strategic end-markets, including the United States, through the Lobito Railway Corridor, offering a direct logistics route to Atlantic ports,” says Mushinge.

Establishment of Lunda Resources

Last week US-based critical minerals developer Terra Metals and resource investment firm Metalex Commodities finalised an agreement to establish Lunda Resources, a new copper and cobalt production venture in Zambia that both companies describe as a potential “powerhouse” in the global critical minerals market.

In a statement Terra Metals said the agreement represents a significant diplomatic and commercial milestone for the region’s mining sector and reinforces US-Africa cooperation in the clean energy transition.

Terra Metals, a Delaware-registered company, holds mining and exploration assets in Zambia’s Kabompo Dome, located approximately 129 km west of First Quantum Minerals’ Sentinel and Kalumbila mines, and 177 km from Barrick’s Lumwana operation.

Metalex Commodities, also based in the US, operates mineral trading businesses in Nigeria and Zambia, with a focus on high-demand commodities such as lithium, manganese, copper, and cobalt.

In picture is the old Benguela Railway line in the Moxico Province of Angola. This line will form part of the Lobito Corridor. WhyAfrica drove alongside this railway line during our 2023 WhyAfrica Road Trip. Image credit: Leon Louw for WhyAfrica

Lunda a boost for USA’s critical mineral imports from Zambia