Business
Local firms cry foul as Chinese firm lands $498m KCM deal
Questions are mounting over the extent to
Picture: Zambian Business Times
Questions are mounting over the extent to which local engineering firms are being afforded opportunities in Zambia’s major mining projects, following the recent award of a $498 million contract by Konkola Copper Mines (KCM) to a Chinese firm.
The decision has sparked a vigorous debate within the industry and among stakeholders, who are calling for greater transparency and a more equitable distribution of contracts to bolster the local engineering sector and drive sustainable national development.
ZCCM Investments Holdings Plc a minority shareholder with 20.6% shareholding has approved the construction of a $498 million Tailings Leach Plant at Konkola Copper Mines’ (KCM) Nchanga operation in Chingola.
The project’s implementation follows the signing of an engineering, procurement, and construction agreement between KCM and China NERIN Engineering Company Limited on 17 September 2026. The decision to award the contract to a foreign firm has, however, has drawn criticism from local industry experts.
Charles Mulila, Executive Director of Development, Education Community Projects (DECOP), raised concerns in an interview with the Zambian Business Times – ZBT, questioning whether local engineering companies are being overlooked despite having the capacity to undertake such large-scale projects.
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According to ZCCM IH the Tailings Leach Plant would process an estimated 546 million tonnes of historical tailings from the TD5 dam at Nchanga, containing an average copper grade of 0.54 percent.
ZCCM IH said once fully operational, the plant is expected to produce approximately 70,000 tonnes of LME Grade A copper cathode annually. It said the facility is expected to be the largest tailings leach plant in Africa using the latest technology and will process about 53,500 tonnes of tailings per day.
“We do have engineers, many companies in that field, who are just sitting idle,” Mulila Mulila maintained.
“We already have a law that talks about local content, Statutory Instrument 68 of 2025, which the President signed. If we are not utilizing local content, we are depriving ourselves of opportunities meant to support local suppliers and contractors.”
Mulila cited examples of capable Zambian engineering firms and underscored the need for mining firms to give opportunities to local firms.
“When major contracts are consistently awarded to foreign companies, it undermines the potential of our local companies and may disadvantage local industry,” he added.
He called on stakeholders to ensure compliance with local content provisions and to prioritize the participation of Zambian companies in the mining sector’s major projects.
Article by Tyndale Muchiya
Source: Zambian Business Times — Read more
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