Zimbabwe's Copper Revival Hinges on Investor-Friendly Environment

Zimbabwe's dormant copper industry is at a critical juncture as it faces a potentially important investment test. The question facing Mines Minister Polite Kambamura is no longer simply whether Zimbabwe can revive its old copper mines, but whether the Government can create the technical, financial and regulatory conditions under which international investors would be prepared to redevelop them.

The Mangura mine, a prime example of an ageing asset that needs to be converted into a commercially competitive project, presents significant challenges. The mine's principal challenge is its depth, making access, dewatering, underground development, energy requirements and ore-handling economics significantly more difficult than those of a shallow, open-pit operation.

However, the existence of a difficult resource does not automatically make it an uneconomic one. Modern mining technology, higher copper prices, improved processing techniques and better capital structures can alter the economics sufficiently to justify redevelopment.

The global copper market is providing a stronger backdrop than existed when Zimbabwe's copper industry entered decline. Copper is becoming strategically more valuable due to its fundamental role in electricity transmission, renewable-energy systems, electric vehicles, data centres, industrial equipment and grid expansion.