Fields of Copper:
Streets of Gold

Zambia and copper have been intrinsically linked for centuries, with the mineral playing a defining role in the country’s history and economic development. This relationship is far from coincidental; it is a vital and long-standing connection. Copper has been integral to Zambian society since at least 1000 AD when copper ingots were used for trade at Ngombe Ilede. Today, copper continues to represent Zambia’s mineral wealth, proudly displayed on the national flag. The national football teams, the Copper Bullets (Chipolopolo) and the Copper Queens, carry the mineral’s name, as does an entire province of the country. The intertwining of copper and Zambia’s identity is undeniable, both in its past and present.

The economic significance of copper has been paramount for Zambia since 1908, when commercially viable deposits were discovered in Kansanshi, Solwezi. Production began the same year, sparking a rush for the mineral. By 1928, the first large-scale commercial mine was established in Luanshya. Since then, every ebb and flow in the price of copper on the global market has profoundly impacted Zambia’s economy. Yet, while copper has long dominated the nation’s mining sector, another mineral has been quietly rising to prominence—gold.

Gold was first discovered in Kafue in the 1930s, with commercial mining starting at the Ngoma Mine. Production expanded during the 1950s and 1960s, but it wasn’t until recent years that gold mining truly began to flourish. A turning point came in July 2019, with a documented gold rush at Kasenseli River in Mwinilunga, Northwestern Province. This rush marked the beginning of many more in locations such as Mumbwa, Serenje, and Chisamba. The increasing attention on gold is not just a matter of discovery but a reflection of its growing value in global markets.

This surge in gold mining comes at a fortuitous time for Zambia. The global demand for gold has steadily risen, driven by central banks diversifying their reserves and individuals seeking safe investments during economic and geopolitical uncertainty periods. The price of gold has climbed dramatically, from USD1,162 per ounce in 2014 to USD2,744.26 per ounce in 2024. In less than a year, between December 2023 and October 2024, prices surged by more than 30 per cent, reaching USD2,713. The stability and profitability of gold have made it a critical focus for Zambia’s mining industry.

Given this growing demand, Zambia faces both an opportunity and a challenge: optimising the exploration, mining, processing, and monetisation of its gold reserves. Progress has already been made in establishing the Zambia Gold Company Limited (ZGCL) in 2020, a subsidiary of ZCCM-IH. Formed in response to the Kasenseli gold rush, ZGCL aims to formalise gold mining and position Zambia as a leader in the gold sector by 2026. With the government designating gold as a strategic mineral, the metal’s importance to Zambia’s economy is becoming increasingly evident.

Zambia’s gold reserves are diverse, comprising both alluvial and reef gold deposits scattered across the country. This diversity gives Zambia the potential to become a significant player in the global gold market. A VRIO (Value, Rarity, Imitability, Organisation) analysis reveals that Zambia’s gold resources are highly valuable, rare, and difficult to replicate. Furthermore, the industry is becoming more structured and organised each year, creating an environment conducive to long-term growth and competitiveness.

However, the rise of gold mining comes with challenges, particularly in the artisanal mining sector. Small-scale miners often use hazardous methods, such as mercury extraction and the diversion of waterways, posing risks to both human health and the environment. The Zambia Gold Company has addressed these risks by promoting safer, more sustainable mining practices. For instance, training programmes for artisanal miners aim to reduce harmful practices, while environmental regulations are being strengthened to ensure compliance. These efforts are critical to ensuring that artisanal mining does not undermine the long-term viability of Zambia’s gold sector.

Gold’s success mirrors the growth seen in other mineral sectors, such as cobalt, nickel, and emeralds. For instance, Zambia’s nickel production increased by 96.6 per cent between 2022 and 2023, driven by key operations at Munali Nickel Mine and Enterprise Nickel. This diversification highlights Zambia’s dynamic mining sector, where multiple minerals contribute to economic growth. While copper will undoubtedly remain the cornerstone of the economy, minerals like gold are poised to play an increasingly significant role in the country’s future.

Looking ahead, gold has the potential to become the new standard bearer of Zambia’s mineral wealth. The combination of rising global demand, competitive prices, and significant reserves positions Zambia favourably in the international gold market. To realise this potential, Zambia must continue addressing challenges in artisanal mining while fostering a sustainable and responsible industry. Policies to integrate small-scale miners into the formal economy and incentivise environmentally friendly practices will be vital to achieving this balance.

In conclusion, while copper has long served as the foundation of Zambia’s economy, gold is emerging as a powerful new force within the mining sector. With its growing global demand and the potential for significant growth, gold could become Zambia’s next aspirational mineral. By maximising its gold resources and addressing environmental and social risks, Zambia is well-positioned to secure its place as a leading player in the global mining industry for decades to come. The rise of gold does not signify the end of copper’s dominance but rather the beginning of a more diversified and robust mining economy. Together, these minerals have the potential to transform Zambia into a global powerhouse, blending its rich history with a future of immense promise.