PRESIDENT Hakainde Hichilema has officially commissioned the S3 Expansion Project at First Quantum Minerals’ subsidiary, Kansanshi Mining PLC, marking a pivotal moment for Zambia’s mining sector and its broader economic recovery, anchored by a US$1.25 billion investment, the largest in the industry in recent years.

This is contained in a press release issued by Langmead & Baker Ltd.

The S3 Expansion, the largest single investment in Zambia’s mining industry in recent years, will extend the life of the Kansanshi mine to the 2040s, bolster production, and create substantial employment opportunities. The project includes an expansion of the mining pit and its associated fleet, a new state-of-the-art processing plant, and a US$115 million upgrade to the Kansanshi smelter, reinforcing the nation’s capacity for in-country mineral value addition.

This strategic investment, which had created 1,800 jobs during the construction phase, is anticipated to create approximately an additional 800 permanent jobs, providing a significant uplift to the local and national workforce.

Speaking at the commissioning ceremony, President Hichilema hailed the investment as a clear demonstration of private sector confidence in Zambia’s economic trajectory.

“This project symbolizes private sector confidence in this economy, in this country. Nobody puts US$1,250,000,000 in a project located in a country and an environment you have no trust in, you have no confidence in,” he said.

The President underscored the government’s commitment to fostering a stable and attractive investment climate, which was pivotal in reviving the S3 project after it was previously stalled.

He emphasised that the expansion is a cornerstone of the nation’s growth agenda and its ambitious target to increase copper production to three million tonnes annually.

Speaking at the same event, First Quantum Minerals CEO, Tristan Pascal, reiterated the company’s long-standing partnership with Zambia.

“The S3 Expansion Project is a bold US$1.25 billion investment in Zambia’s mining future, but this is more than a figure on a piece of paper. It reflects our unwavering confidence in Zambia’s future, its leadership, its policies and above all in the talent and capability of its people,” said Mr Pascal.

He highlighted that the project will increase copper production from FQM’s Zambian operations to between 450,000 and 500,000 tonnes, and that the new processing plant is designed to treat 25 million tonnes of ore annually and incorporates cutting-edge technology and sustainability features.

Mr Pascal also emphasised the company’s dedication to local skills development, environmental stewardship, community investment, and education, which has seen students from supported schools progress to university.

“At the peak of construction, over 2,500 Zambians worked here, many gaining skills that will serve them long after S3 is complete. The new processing plant, designed to trade 25 million tonnes of ore annually, incorporates cutting-edge technology, automation and sustainability features that make S3 one of the most advanced copper projects on the continent. And I’m reminded that we’re already deploying automation in the mine, not to the detriment of employment, but to enhance it, in that our automated drills at Sentinel and soon to come to Kinshasa create new opportunities for our employees to expand their capabilities.

As we scale up production, we remain firmly committed to environmental stewardship. Across our operations, we apply global best practises in tablings management, water conservation, dust suppression and rehabilitation. We are continuously investing in technologies that reduce emissions and improve energy efficiency…and we believe mining must do more than just extract minerals. We must uplift lives. Our corporate social investment programmes are deeply embedded with our communities and reflect our commitment to a lasting legacy,” he added.

Minister of Mines and Minerals Development, Paul Kabuswe, lauded the project as a critical driver of economic revitalization, as well as job creation.

“So, the economy must grow and that is why the president has been saying, the economy must grow. When it grows, it will now start bearing fruits. And those fruits are what Zambians will benefit from. The immediate fruit from economic growth such as the S3 Expansion Project is the direct jobs that this investment will give. That’s the first fruit. When those miners get paid, mister president, they go out there to buy. There is now money circulating in the economy. Then the benefit is being seen,” he said.

Mr Kabuswe further credited the government’s policy shifts for unlocking this and other investments, contrasting the current growth, with Zambia’s economy projected to expand by over 6 percent this year, with the negative growth rates inherited in 2021, stating that the S3 project is a direct fruit of the reformed economic environment.

“The clarity of policy and spirit of collaboration have been key to unlocking this investment today,” he said.

The S3 Expansion is set to nearly double the ore processing capacity at Kansanshi, from 28 million tonnes to approximately 53 million tonnes per year. This will be crucial in offsetting declining ore grades and maintaining robust copper output for the next two decades. The expansion also involves opening a new mining pit, the South East Dome, which will contribute to the mine’s extended lifespan.

First Quantum believes that the project’s economic impact extends beyond direct employment and revenue generation, with over 430 Zambian-owned companies involved in the construction and provision of services, stimulating broad-based economic activity and empowering local entrepreneurs.