Posted on 23 Sep 2025
The US government is backing a new Zambian copper and cobalt project, Kallanish learns.
Zambian miner Terra Metals and its joint venture partner, the US producer Metalex Commodities, have received a grant from the US Trade and Development Agency (USTDA) to finance the feasibility study for the Kazozo mine and adjacent large-scale exploration licenses in Northwestern Zambia. The plan is to expand production by 25,000 tonnes/year of copper and cobalt concentrates, which the USTDA says creates opportunities for US companies to supply materials and equipment for the construction phase.
Earlier this year, Terra Metals and Metalex set up their JV, called Lunda Resources. As of June, the new entity had invested ZMW 270 million ($11m) and is budgeting a total of ZMW 2.7 billion to fully develop the Kazozo mine site and its copper ore processing systems.
Lunda estimates that the project will process up to 2m t/y of copper ore, producing 100,000 t/y of combined copper concentrates, copper cement, and cobalt precipitate. A 240 t/hour copper and cobalt concentrator was expected to be commissioned this month, for which Metalex said it would raise $100m by Q1 next year.
Zambia is on the Lobito Railway Corridor, a rail project connecting Angola, the Democratic Republic of the Congo, and Tanzania, which is backed by the US and the EU. The 1,700-kilometre-long railway connection, which is due to break ground next year, is expected to boost the trade of critical minerals from producing countries to global buyers by speeding up exports through the Atlantic coast of Africa.
According to investment firm CrossBoundary Group, the Lobito corridor project “offers strategic value for US visibility and influence over DRC mineral exports” even if transport to China through the Indian Ocean is more efficient.
The US is trying to counter China’s presence by investing in strategic locations to bolster its critical minerals supply chains. However, the potential lapse of the African Growth and Opportunity Act (AGOA), due to expire this month, could lead to the US losing ground to China in Africa.
The USTDA grant is reportedly $1.4m. Kallanish has contacted USTDA and the companies for comment.
Source:Kallanish
