Two major Zambian copper smelters and sulfuric acid producers, Mopani and Chambishi, are planning extended, non-routine maintenance shutdowns later this year, which will further tighten copper production and the supply of sulfuric acid required for processing.
Global supplies of sulfuric acid and other leaching chemicals have already been disrupted due to the war in Iran. Mines in the Democratic Republic of Congo, the world's largest cobalt producer and second-largest copper producer, have been forced to reduce usage or consider cutting production.
Zambia is Africa's second-largest copper producer. Its copper smelters generate approximately 2 million tonnes of sulfuric acid annually, primarily as a by-product for use in local mines, with the surplus exported to the Congo. According to reports, the head of Canada's First Quantum Minerals in Zambia stated that the country's sulfuric acid inventories are critically depleted, effectively eliminating export capacity.
While copper smelters typically undergo routine annual maintenance shutdowns of around 30 days, Mopani and Chambishi face significantly longer outages this year. Mopani is scheduled for a three-day shutdown in June, followed by an extended stoppage of approximately 40 to 45 days from August to mid-September. Chambishi plans a shutdown lasting about two months, continuing until August.
Zambia has already tightened controls on sulfuric acid exports this month, requiring traders to obtain licenses to protect the domestic industry. However, the First Quantum representative indicated that exports are unlikely to resume in the short term.
Global copper supply is expected to tighten this year, constrained by years of underinvestment that have limited mine output growth. Last year, Zambia's copper production was 890,346 tonnes, falling short of the 1 million tonne target. Concurrently, Mopani is operating far below its 225,000-tonne finished copper capacity due to a shortage of copper concentrate resulting from prolonged underinvestment.
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