Zambian President Hakainde Hichilema has officiated the commissioning of the S3 Expansion project at First Quantum Minerals’ (FQM’s) subsidiary, Kansanshi Mining, following a $1.25-billion investment by the mining company.

The S3 Expansion, a considerable investment in Zambia’s mining industry, will extend the life of the Kansanshi mine to the 2040s, bolster production and create employment opportunities.

The project included an expansion of the mining pit and its associated fleet, a new processing plant and a $115-million upgrade to the Kansanshi smelter, reinforcing Zambia’s capacity for in-country mineral value addition.

The S3 Expansion is set to nearly double the ore processing capacity at Kansanshi, from 28-million tonnes a year to about 53-million tonnes a year.

This is 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.

This strategic investment, which created 1 800 jobs during the construction phase, is anticipated to create an about additional 800 permanent jobs.

TSX-listed FQM says 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.

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

"This project symbolises private sector confidence in this economy, in this country. Nobody puts $1.25-billion 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, key to 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 yearly.

Also speaking at the event, FQM CEO Tristan Pascal reiterated the company’s long-standing partnership with Zambia.

“The S3 Expansion project is a bold $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,” he said.

Pascal highlighted that the project would increase copper production from FQM’s Zambian operations to between 450 000 t and 500 000 t, and that the new processing plant is designed to treat 25-million tonnes of ore yearly and incorporates “cutting-edge technology” and sustainability features.

He 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.”

Pascal added that the company is deploying automation in the mine, aimed at enhancing employment.

Zambian Mines and Minerals Development Minister Paul Kabuswe lauded the project as a critical driver of economic revitalisation and job creation.

He also credited the government’s policy shifts for unlocking this and other investments, contrasting the current growth with the negative growth rates inherited in 2021, with Zambia’s economy projected to expand by over 6% this year.