Metalex and CARE join forces to launch Lunda Resources in Zambia
2024-09-23 08:31- Metalex Commodities Inc. and Central African Renewable Energy have entered a binding agreement to create Lunda Resources in Zambia.
- The new joint venture will manage three mining licenses in Zambia's Northwestern Province, focusing on copper and cobalt production.
- This partnership aims to enhance production capabilities and contribute to sustainable energy goals in the region.
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Insights
On September 23, 2024, Metalex Commodities Inc. announced a strategic partnership with Central African Renewable Energy (CARE) to form a new joint venture named Lunda Resources in Zambia. This collaboration aims to tap into the burgeoning opportunities in Zambia's Northwestern Province, which is increasingly recognized as a significant copper belt. Lunda Resources will oversee three mining licenses that span a total area of 349 square kilometers, equipped with advanced mining and processing infrastructure, including a 240 Metric Ton per Hour copper and cobalt concentrator. Metalex is set to invest $102 million over an 18-month period, commencing in June 2024, to bring these assets into production. This investment highlights Metalex's commitment to developing high-value projects and enhancing production capabilities in the region. The license portfolio includes a JORC-compliant report indicating the presence of 29 million tons of medium-grade copper-cobalt ore, with further geological investigations planned to refine resource estimates. Ayo Sopitan, the Founder and CEO of Metalex, expressed enthusiasm about the partnership, emphasizing its alignment with the company's strategy to develop key mineral assets in emerging regions. The investment is expected to accelerate production and leverage the high potential of the copper belt while ensuring sustainable and efficient operations. Frank Masaka, CEO of CARE, also expressed optimism about the partnership, highlighting the long-term potential of working with Metalex. This collaboration is positioned to contribute significantly to the global green energy transition, leveraging Zambia's rich mineral resources to meet sustainable energy goals.
Contexts
Metalex and CARE have announced a partnership to launch Lunda Resources in Zambia, a move that comes amid significant economic and political developments in the region. Recently, Zambia and Congo have engaged in trade dispute talks following the closure of their shared border, which has impacted commerce and trade relations between the two nations. The Zambian commerce minister's visit to Congo aims to find a diplomatic resolution to this disagreement, highlighting the importance of stable trade relations for economic growth. In addition to trade issues, Zambia is facing internal challenges, as evidenced by the recent arrest of the former first lady and her daughter for owning properties valued at over $2 million. Authorities suspect these assets may be linked to criminal activities, prompting ongoing investigations into the source of their wealth. This situation reflects broader concerns regarding governance and corruption in Zambia, which could influence the business environment for new ventures like Lunda Resources. The establishment of Lunda Resources by Metalex and CARE may be seen as a strategic move to capitalize on Zambia's mineral wealth, particularly in a time of economic uncertainty. The success of this venture will depend on navigating the current political landscape and addressing the challenges posed by both domestic and international factors.
