Prospect Resources Ltd granted license for Mumbezhi mining
Prospect Resources Ltd has secured two Large-Scale Mining Licences (LML) for its Mumbezhi Copper Project in north-west Zambia, covering the entire project area.
This milestone represents a significant step forward, providing an initial 25-year tenure that can be renewed for further 25-year periods. The granting of these licenses reduces project risk and establishes a solid legal and regulatory foundation, enabling Prospect to advance development activities, secure funding, and explore strategic partnerships. The LMLs also allow for full-scale commercial mining, processing, and mineral export, creating a clear path for future growth and long-term operational planning.
Mumbezhi project
Mumbezhi is positioned to play a key role in helping Zambia reach its goal of producing 3 million tonnes of copper annually by 2031. The project already boasts a maiden Mineral Resource estimate of 107 million tonnes at 0.5% copper for 515,000 tonnes of contained copper across the Nyungu Central and Kabikupa deposits. Additional exploration potential exists within the broader Nyungu Corridor and other zones, including Nyungu South, West Mwombezhi, and Kabikupa. Prospect’s plan to commence further drilling in Q2 2025 aims to expand this resource base and strengthen the project’s long-term value.
The LMLs also position Prospect to benefit from Zambia’s mining tax framework, which includes capital allowances, royalty structures, and VAT advantages. Additionally, the licenses create opportunities for Prospect to negotiate investment incentives under the Zambia Development Agency (ZDA) framework. These financial and regulatory benefits enhance the project’s economic viability and make it more attractive for potential investors and partners.
Sam Hosack, Managing Director and CEO of Prospect Resources, highlighted the importance of the LML approvals, stating that they reflect strong governmental support for responsible mining. He noted that the licenses not only strengthen Mumbezhi’s standing but also provide a clear runway for expansion and future production. The upcoming drilling program will focus on high-priority targets within the Nyungu Corridor, which remains underexplored despite its significant geological potential. This strategic progress positions Mumbezhi as a key asset in Zambia’s drive to become a global copper production leader.
