Boundaries of the explored: the Russian Federation is ready to start mining in Zambia

Russian companies are ready to start exploration and mining operations in Zambia. As the Russian Ambassador to this country, Azim Yarakhmedov, told Izvestia, strategic resources such as copper, cobalt, lithium and rare earths are of interest. Zambia is the second largest copper supplier on the African continent, which makes it an important economic partner. Experts note that Russia is also interested in expanding cooperation with other countries, including South Africa, Zimbabwe, DR Congo, Tanzania and Mali. Since the resource potential of many African countries has not yet been fully explored, the list of potential partners may expand. About the economic interests of the Russian Federation in Africa and the growing competition with other major powers — in the material of Izvestia.

Russia can develop Zambia's mining industry

The Russian side may join the exploration and production of minerals in Zambia. Negotiations on this are already underway.

—Russian companies are in dialogue with their Zambian partners regarding their participation in the exploration and production of copper, cobalt, lithium and rare earths, primarily in the provinces of Copperbelt and Northern Zambia, where large deposits are concentrated," Russian Ambassador to Zambia Azim Yarakhmedov told Izvestia. — Given that Russia aims to occupy up to 12% of the global rare earth market by 2030 and reduce imports to 45%, cooperation with countries such as Zambia is becoming an important area for us.

After the Democratic Republic of the Congo, Zambia is the second largest copper producer in Africa, accounting for about 12% of GDP and over 70% of the country's foreign exchange export earnings. The so—called copper belt (Copperbelt) passes through here - a key copper mining area in Africa with huge reserves of copper and cobalt, which play an important role in the global mining industry. Ore reserves at the deposits exceed 110 million tons, and the state intends to increase copper production to a record level, exceeding 1 million tons in 2025.

The priority of Russia's resource cooperation with Zambia is related not only to the strategic importance of the African country's natural resources, but also to the fact that Lusaka creates attractive conditions for investors.

— We are also closely monitoring what is happening in the framework of the bill on minerals and exploration, which is currently being considered by the Parliament of Zambia. We see in it a potential basis for a transparent, understandable and stable legal environment that will facilitate the inflow of Russian investments, especially in refining and metallurgy," Yarakhmedov said.

Zambia has a sufficient resource base, but the shortage of qualified engineers and specialized technologies pushes it to look for opportunities for cooperation. In this case, Russia becomes a strategically important partner. In return, Russia will have access to valuable mineral resources, which are essential for high-tech industries.

— We have already proposed to the Zambian side to consider the format of joint ventures, where Russia will provide access to technology, equipment and engineering expertise. We have strong competencies in the processing of non—ferrous and rare earth metals, including flotation equipment, integrated enrichment schemes, and environmentally friendly processing methods," the diplomat stressed. — Zambia is striving to move away from simple mining towards creating added value. And here we absolutely coincide.

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New initiatives of the Russian Federation on the African continent require investments, especially in the mining industry. According to Yarakhmedov, the Russian side has something to offer the Zambians in terms of financing, including cooperation within the framework of BRICS.

— At the last meeting with the Zambian Development Agency (ZDA), we discussed the possibility of involving the Russian Export Center and Roseximbank in project support of new initiatives. The format may include preferential loans, export insurance, and the supply of equipment with deferred payment," the ambassador said. — In parallel, consultations are underway on possible connection to BRICS platforms, including the BRICS Development Bank with settlements in national currencies, where Russia and Zambia could jointly initiate industrial clusters, for example, for processing copper concentrate or lithium-containing raw materials.

Cooperation of the Russian Federation with other African countries

Africa is one of the most populated and resource—rich continents. According to various estimates, it contains about 60% of the world's reserves of manganese ores, 19% of uranium, almost 50% of chromium, more than 40% of titanium, and about 42% of bauxite. Africa provides 90% of the world's demand for platinum and 52.5% for diamonds. It also produces 36% of the world's vanadium production and 42% of cobalt.

Russia is also rich in natural resources, particularly rare earth metals. In February, the Ministry of Natural Resources of the Russian Federation reported that the total reserves of rare metals in Russia amount to 658 million tons, and reserves of rare earth metals (REM) — 28.5 million tons. According to the latest report (for 2022), almost half (46%) of all REM reserves are located in the Murmansk Region. Large deposits are located in Yakutia, the Krasnoyarsk Territory, the Irkutsk Region, and the Komi Republic. However, according to the US Geological Survey (USGS), Russia accounts for only 2% of global REM production.

"There are many things that the Russian Federation does not produce at home because it is cheaper to buy," Stanislav Mitrakhovich, an expert at the National Energy Security Fund and a lecturer at the Financial University under the government, told Izvestia.

At the same time, Russia, according to Russian President Vladimir Putin, plans to multiply the production of new materials based on REM, including within the framework of the national technological leadership project "New Materials and Chemistry".

— Of course, Africa is important for Russia. The Strategy for the development of the mineral resource base of the Russian Federation until 2035, adopted by the government, contains a list of minerals that are scarce in Russia and that will need to be imported to meet the needs of the economy. For example, there are lithium, uranium, bauxite, manganese, chromium, titanium and a number of other minerals that Africa is rich in and which are necessary for the energy transition, the semiconductor industry, and a number of other advanced industries," Vsevolod Sviridov, Deputy director of the HSE Center for African Studies, explained to Izvestia.

So far, Russia has limited direct cooperation with African producers, he added. The main reason is the underdeveloped processing industry for these resources. In addition, many niches are already occupied: the bulk of the REM in Africa is mined and processed by either Chinese or Western companies. Nevertheless, Russian businesses operate in a number of African countries.

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To what extent will the project strengthen Russia's position on the continent and how did the British frame the African country?

Our country can contribute to the development of the mining industry in Africa not only through exploration, extraction and processing of minerals, but also through the exchange of experience in the field of public administration — to help reform legislation and regulatory frameworks, develop strategies, and participate in the retraining of officials.

— If we are talking about South Africa, we are primarily talking about platinum group metals (platinum, palladium, rhodium, iridium, ruthenium, osmium). South Africa is an important processing center for minerals extracted in South, Central and East Africa, where the concentrate is processed and then exported," said Vsevolod Sviridov. — Cooperation in the field of exploration and mining with Zimbabwe is promising, for example, because of lithium. The Democratic Republic of the Congo and Zambia (cobalt and copper) are also important, in some areas — Tanzania, Namibia, Mali, Niger.

Cooperation is also possible with other African countries, since not all REM deposits have been fully explored so far, the analyst says. But it is possible that competition for resource extraction in Africa may intensify in the future. China, Russia, European countries, and the United States remain the main contenders. In July, for the first time since Donald Trump's return to the White House, a mini-summit was held in Washington with five African states — Gabon, Guinea-Bissau, Liberia, Mauritania and Senegal. The central topic was the discussion of cooperation with West African countries in the field of minerals.