First Quantum commissions Kansanshi expansion in Zambia

First Quantum Minerals (TSX: FM) has commissioned its $1.25 billion expansion at the Kansanshi copper mine in Zambia, marking the country’s largest copper investment in nearly 10 years.

Known as the S3 project, the development was first proposed in 2012 and includes a new processing plant that nearly doubles ore-milling capacity, boosts smelter throughput by around 25%, and opens a new mining pit. Commissioning began Tuesday, three years after securing board approval, according to Bloomberg.

Once Africa’s top copper producer, Kansanshi is now expected to deliver about 250,000 tonnes of copper annually through 2044, up from 171,000 tonnes in 2024. The expansion aligns with President Hakainde Hichilema’s ambition to more than triple Zambia’s national copper production by the early 2030s.

Kansanshi copper mine

The investment comes as global competitors ramp up their commitments in Zambia. Barrick Gold (TSX: ABX; NYSE: GOLD) is also injecting $2 billion into expanding its Lumwana mine, located in the same mineral-rich province.

For First Quantum, Kansanshi’s expansion provides critical growth following the 2023 shutdown of its $10 billion Cobre Panamá mine, which was ordered closed by Panama’s Supreme Court. The closure has cost the company roughly $20 million per month in care and maintenance, shifting Zambia to account for over 90% of its total output through Kansanshi and the nearby Sentinel mine.

Together, these operations now contribute more than half of Zambia’s copper output, reinforcing the nation’s dependence on the metal for over 70% of export revenues. Meanwhile, First Quantum has been active in bond markets. The miner repurchased $714 million of its 6.875% 2027 senior notes, leaving $35.4 million outstanding. It also launched a $250 million tender for its 2029 notes and issued a new $1 billion bond, due 2034, at 7.25%.