Konkola Copper Mines won shareholder approval on October 7 for a $498 million plant that will recover copper from old mine waste in Zambia. At full capacity it should add about 70,000 tonnes of copper cathode a year without digging new ore.
At a glance
- ZCCM-IH, which owns 20.6% of Konkola Copper Mines, approved the $498 million tailings leach plant on October 7.
- The plant will treat 17.7 million tonnes of old tailings a year and recover about 74% of their copper.
- China NERIN Engineering will build it in 24 months, with full output expected in the fourth year.
Background
Tailings are the finely ground rock left over after a mine extracts metal from ore. Older Zambian operations processed ore less efficiently than modern plants, so their tailings dams still hold recoverable copper. A leach plant dissolves that copper with acid, then uses solvent extraction and electrowinning (SX-EW) to turn it into pure cathode sheets.
What happened
ZCCM Investment Holdings (ZCCM-IH) gave its shareholder approval on October 7 for a $498 million tailings leach plant at Konkola Copper Mines (KCM). The state-linked investor owns 20.6% of KCM, which is controlled by the Vedanta group. The plant will reprocess Tailings Dam 5 at Nchanga, near Chingola on Zambia's Copperbelt.
The dam holds an estimated 546 million tonnes of tailings grading 0.54% copper. The plant is designed to treat 53,500 tonnes of that material a day and recover 74% of the copper. At full capacity it should produce about 70,000 tonnes a year of cathode that meets London Metal Exchange (LME) Grade A standard.
How the plant will be built
KCM signed the engineering, procurement and construction contract with China NERIN Engineering on September 18. NERIN will deliver the plant on a turnkey basis over 24 months. The contract only takes effect once certain conditions are met, including an advance payment to the contractor.
Output will ramp up gradually, with full capacity expected in the plant's fourth year. "It turns them into about 70,000 t/y of LME Grade A cathode without mining a single new tonne of ore," said ZCCM-IH chief executive Kakenenwa Muyangwa.
What it means
The project is a large step for KCM, which produced about 80,000 tonnes of copper in 2025. Vedanta wants KCM to reach 300,000 tonnes a year by 2031, and the tailings plant alone could nearly double current output.
It also supports Zambia's goal of producing 3 million tonnes of copper a year by 2031. Recovering metal from existing waste is quicker than opening a new mine, because the rock has already been mined and crushed. For copper buyers, more cathode from Zambia would add supply to a market where strikes at Chilean mines have kept supply tight.
Our read
Outlook: neutral. The plant adds meaningful supply, but not before construction ends in about two years and full output in year four. It does little to ease today's tight copper market.
What to watch
- Whether KCM pays the advance that makes the NERIN contract effective.
- When construction starts, since the 24-month build period runs from then.
- Progress at Konkola Deep, the other project behind KCM's 300,000-tonne target.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-09-18: KCM signs a $498 million construction contract with China NERIN Engineering.
- 2026-10-07: ZCCM-IH gives shareholder approval for the tailings leach plant.
Supply Drivers
The plant could add about 70,000 tonnes of cathode a year once it reaches full capacity in its fourth year.
Government Policies
Zambia wants national copper output of 3 million tonnes a year by 2031.
Mining Production
KCM produced about 80,000 tonnes in 2025 and targets 300,000 tonnes a year by 2031.
What could lift prices
- The new cathode only arrives after a 24-month build and a multi-year ramp-up.
- The contract is not yet effective, so the start date could slip.
What could weigh on prices
- About 70,000 tonnes a year of new cathode would add to future copper supply.
- Zambia's push toward 3 million tonnes a year could bring more projects like this one.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Zambia | High | The plant supports the national target of 3 million tonnes of copper a year by 2031. |
| China | Low | A Chinese engineering firm, NERIN, wins the $498 million construction contract. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Mining | Positive | Old tailings become a source of new cathode without fresh mining. |
| Copper Refining | Neutral | SX-EW makes finished cathode on site, bypassing smelters and refineries. |
Who gains, who loses
- Vedanta: The plant could nearly double output at its Zambian copper business.
- China NERIN Engineering: It wins a $498 million turnkey construction contract.
- Higher-cost copper projects: Cheap tailings copper could compete for buyers once the plant reaches full output.
Other ways this could play out
- If the advance payment is delayed, construction and first copper would slip beyond the planned 24 months.
- If recovery beats the 74% design rate, annual output could exceed 70,000 tonnes.
Price risks
- Fresh mine disruptions elsewhere could make copper tighter regardless of this project.
- A faster ramp-up would bring the extra supply forward.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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