Economy

Industry Watch: How Konkola Copper Mines is roaring back to life, impacting businesses, livelihoods

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A year ago, Konkola Copper Mines (KCM) returned to Vedanta Resources after a prolonged liquidation period that left production, employment, and local economies in limbo.

Today, the story is markedly different. KCM is not just producing copper again; it is slowly restoring the economic heartbeat of Chingola, Chililabombwe, and the broader Copperbelt.

Its trajectory offers lessons on the interplay between investment, operations, and community impact in Zambia’s mining sector.

From August 2024 to December 2025, KCM’s monthly copper output rose from 5,500 tonnes to 8,200 tonnes across its four business units: Konkola, Nchanga, Nkana, and Nampundwe.

Mines and Minerals Development Minister, Paul Kabuswe, noted in Parliament that this reflects “steady progress” and a deliberate recovery plan.

Beyond numbers, the revival of technical capabilities, such as the reintroduction of raise boring at No. 3 Shaft in Chililabombwe, the first in fifteen years, signals a commitment to safer, more efficient underground operations and unlocks access to deeper ore bodies, a cornerstone of the Konkola Deep Mining Project (KDMP).

Employment has been a central focus. KCM now employs 13,800 people, comprised of direct staff and business partners.

These figures are not just statistics; they represent households regaining stability after years of uncertainty.
The mine’s resumption has also revitalized the local business ecosystem.

KCM works with 2,495 registered vendors, nearly 80 percent of whom are Zambian, injecting US$69.13 million into local supply chains.

This compares to US$7.27 million for foreign companies, demonstrating how mining operations can directly support local enterprises and stimulate economic activity beyond the gates of the mine.

Financially, KCM has made significant strides in addressing past obligations.

Out of US$407 million owed for post-liquidation contracts, US$383 million has been paid, while all Class I creditors, those owed under US$1 million, have been fully settled.
Minister Kabuswe emphasised that KCM “remains fully compliant with the High Court order and will honour all remaining obligations,” highlighting transparency and accountability in managing debts and contracts.

The effects on local communities extend beyond employment and business contracts.

Through an independent Trust Board, KCM continues to invest US$20 million annually in education, health, livelihoods, and sports.
Such programmes complement the direct economic benefits of employment and supplier contracts, supporting families and strengthening social infrastructure in Chingola and Chililabombwe.

The resumption of mining activity has allowed shops, markets, and local service providers to regain cash flow, creating a multiplier effect that revitalises livelihoods in these towns.

Yet, challenges persist. KCM continues to face structural obstacles, including ZESCO’s 35 percent upfront power payment policy, unpaid Value Added Tax (VAT) refunds totalling US$178 million from the liquidation period, and overlapping mining licences that threaten long-term operational stability.

Addressing these issues is critical if the mine is to maintain momentum and achieve its production targets, including the goal of 300,000 tonnes annually.

Read More: Vedanta plans $1.5 billion U.S. fund for CopperTech to boost KCM output, reinforce Zambia’s copper hub

Investment remains the linchpin of KCM’s recovery. Vedanta has committed US$330 million by December 2025, with US$50 million already spent on asset improvements, and further funds earmarked for the modernisation of the Nchanga smelter and the expansion of KDMP.

Feasibility studies for a cobalt processing facility, solar power, and a thermal baseload plant indicate a forward-looking strategy to secure energy, expand output, and align KCM with Zambia’s ambitions in clean energy and industrial growth.
The past year demonstrates that mining recovery is multidimensional.

It is not simply about copper output or balance sheets; it is about restoring jobs, supporting local suppliers, stabilising communities, and investing in infrastructure and skills that underpin long-term economic resilience.

KCM’s experience underscores how a focused, strategic approach can revive a complex mining operation while delivering measurable benefits to local economies and society at large.

For the Copperbelt, KCM is more than a mine; it is an economic anchor. Its recovery is proving that when investment, operational discipline, and social responsibility intersect, mining can be a powerful force for development.

The challenge ahead is to sustain this momentum, resolve structural constraints, and ensure that both production and community benefits continue to grow in tandem.

KCM’s first year under Vedanta shows that such a balance is not only possible, it is essential for the future of Zambia’s copper industry and the livelihoods it supports.

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