At a Glance
- First Quantum approves $1.25 billion expansion of Enterprise and Kansanshi mines in Zambia.
- Zambia strengthens its bid to lead Africa’s EV and clean-energy metals market.
- New investment boosts investor confidence under President Hichilema’s pro-mining policies.
First Quantum Minerals Ltd. has approved a fresh $1.25 billion outlay to grow its Enterprise Nickel Mine and Kansanshi Copper Mine in Zambia, marking one of the company’s largest African reinvestments in recent years.
The move signals confidence in the southern African nation’s renewed push to become a major player in the electric vehicle and clean-energy metals market.
The Canadian miner, which trades on the Toronto Stock Exchange, said the decision followed steady progress at its existing operations and what it sees as a more predictable policy environment under President Hakainde Hichilema’s administration.
Enterprise: a bet on nickel and Zambia’s future
Enterprise sits in the Kalumbila District of Zambia’s North-Western Province and forms part of the Trident complex, which also houses the Sentinel copper mine.
It’s the largest nickel deposit now in operation on the continent, holding an estimated 34.7 million tonnes of ore grading nearly 1 percent nickel — roughly 340,000 tonnes of contained metal.
Commercial production began in mid-2024 after a smooth ramp-up period. Output has already risen from about 4,000 tonnes in the first quarter to more than 6,000 tonnes in the second. The mine’s initial annual capacity is around 28,000 tonnes, but engineers say it can be scaled up as market conditions improve.
When running at full pace, Enterprise could make Zambia the leading nickel producer in Africa, feeding demand for high-grade material used in electric vehicle batteries and stainless steel.
“Enterprise shows what can be achieved when strong resources meet a stable policy environment,” a First Quantum spokesperson said. “It’s a project that can grow with the world’s shift toward cleaner energy.”
Boosting Kansanshi and investor confidence
Part of the approved funding will go toward the Kansanshi S3 expansion, a major upgrade to one of Africa’s most productive copper mines. The $1.25 billion program aims to raise annual processing capacity to 53 million tonnes and extend the mine’s life by two decades, to 2044.
The project involves building a new concentrator, reinforcing power supply, and improving waste storage facilities. Construction work is already underway, with mechanical completion expected by mid-2025.
“This is a strong signal of renewed investor trust in our mining sector,” Zambia’s Mines Minister Paul Kabuswe said in a statement. “It aligns with our ambition to make Zambia a central hub for battery metals in Africa.”
Global race for critical minerals
Nickel’s importance has surged alongside the electric vehicle boom. Automakers and governments from Asia to North America are looking to secure reliable sources of key inputs like nickel, cobalt, and lithium.
Zambia, better known for its copper, now sees an opening to diversify its mining base. Analysts believe Enterprise alone could eventually provide as much as 5 percent of the world’s Class 1 nickel—the quality required for EV batteries and advanced industrial applications.
Power, prices, and prospects
Still, the industry faces headwinds. Power supply remains fragile, operating costs are rising, and competition from low-cost producers such as Indonesia is intensifying.
Even so, investors are encouraged by the combination of regulatory reforms, infrastructure improvements, and steady international demand for critical minerals. For First Quantum, the twin expansions at Enterprise and Kansanshi reinforce its long-term bet on Zambia’s role in the global energy transition.
If both projects meet expectations, they could redefine Zambia’s mining map—anchoring the country as a key supplier in the electric vehicle supply chain and strengthening First Quantum’s foothold on the continent.
