Australian mining firm Prospect Resources plans to increase its stake in Zambia’s Mumbezhi copper project to 90 percent, strengthening its presence in one of Africa’s key copper-producing regions as global demand for the metal rises.
The company said on Thursday it had reached an agreement to acquire an additional 5 percent interest in the project from partner Global Development Cooperation (GDC) for US$4.25 million.
Once completed, the deal will raise Prospect’s ownership in the project from 85 percent to 90 percent, further consolidating its control over the Mumbezhi deposit in northwestern Zambia.
The transaction remains subject to regulatory approvals and is expected to be finalized in April 2026, according to the company.
The Mumbezhi project sits in a region known for significant copper deposits and is viewed by the company as a strategic asset in its African portfolio. Prospect Resources already secured majority ownership of the project under a 2024 agreement that allowed it to acquire an 85% stake while the previous owner, Global Development Cooperation, retained a minority share.
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The latest move signals the Australian junior miner’s growing confidence in the project’s long-term potential.
In February, the company announced a 63 percent increase in the estimated copper resources at Mumbezhi following updated geological assessments. The revised figures significantly boosted the project’s scale and strengthened its prospects as a future copper development in Zambia’s mining sector.
Chief executive Sam Hosack said the company was pleased to secure a larger interest in what it believes is a “world-class copper deposit.”
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Hosack noted that exploration activities had already resumed at the site after a pause during the rainy season and that preparations were underway to restart drilling operations.
“The team is preparing to recommence drilling once the rainy season ends,” he said, adding that the company’s recent capital raise would fund an extensive exploration campaign.
According to Hosack, the program will include up to 50,000 metres of drilling aimed at expanding the project’s known resources and improving geological understanding of the deposit.
Analysts say the timing of the investment aligns with growing global interest in copper as demand for the metal accelerates.
Copper plays a critical role in electrical infrastructure, renewable energy systems and electric vehicles. It is also increasingly important in data centers and digital infrastructure linked to the rapid expansion of artificial intelligence technologies.
Industry forecasts suggest the market could face a structural supply deficit in the coming years as demand growth outpaces new mine development.
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Against this backdrop, mining companies are racing to secure high-quality deposits and advance exploration projects toward production.
For Zambia, the expansion of projects such as Mumbezhi supports the government’s ambition to significantly increase national copper output over the next decade.
The country is already Africa’s second-largest copper producer after the Democratic Republic of the Congo, and authorities have repeatedly emphasized the need to attract new investment into the mining sector to unlock additional reserves.
The government has set a long-term target of raising annual copper production to around three million tonnes as part of a broader strategy to strengthen economic growth and increase foreign exchange earnings.
Advancing the Mumbezhi project toward development could therefore contribute to that ambition while positioning Prospect Resources to benefit from rising global copper demand.
For the Australian miner, expanding its ownership stake not only increases its exposure to potential future production but also gives it greater strategic control as exploration at the project continues to expand.
Background to copper exploration in Zambia
Copper exploration and development have become central to the economic strategy of Zambia, one of Africa’s largest producers of the metal and a key player in global copper supply.
The country lies within the Central African Copperbelt, a mineral-rich geological region that stretches across Zambia and the Democratic Republic of the Congo. The Copperbelt hosts some of the world’s largest and highest-grade copper deposits, making it one of the most important mining regions globally.
Copper is the backbone of Zambia’s economy, accounting for a large share of export earnings and foreign exchange revenues. Because of this dependence, the government has been actively encouraging new exploration projects and foreign investment to increase production.
In recent years, Zambia has set an ambitious goal of tripling annual copper production to about 3 million tonnes by 2031, as authorities seek to capitalise on rising global demand for the metal.
Copper is considered a critical mineral for the global energy transition because it is widely used in electric vehicles, renewable energy systems, power grids and industrial machinery. As countries accelerate the shift toward cleaner energy technologies, demand for copper is expected to grow significantly.
Within this context, exploration projects such as the Mumbezhi Copper Project have attracted growing interest from international mining companies.
The Mumbezhi project is located in Zambia’s North-Western Province, a region that has become an important new frontier for copper exploration outside the traditional Copperbelt. The area has seen increased mining activity in recent years due to the discovery of several promising copper deposits.
The project is being developed by Australian-listed mining company Prospect Resources, which has been expanding its footprint in Africa’s copper sector.
Prospect Resources was previously known for developing lithium assets in Zimbabwe but has increasingly shifted its strategic focus toward copper exploration in Zambia, reflecting strong long-term market prospects for the metal.
The company has been conducting exploration drilling and geological assessments at Mumbezhi to determine the scale and quality of copper mineralisation at the site.
Early exploration results have indicated the presence of copper-bearing mineral systems that could potentially support a commercial mining operation if further exploration confirms significant resources.
International investments
International investors have shown strong interest in copper projects in Zambia due to the country’s relatively stable mining regulations and its long-established mining infrastructure.
The Zambian government under President Hakainde Hichilema has introduced reforms aimed at attracting more mining investment. These measures include revising mineral royalty structures, improving policy transparency and strengthening partnerships with global mining companies.
Authorities view the expansion of the mining sector as critical for economic growth, job creation and increasing government revenue.
New projects such as Mumbezhi are also important because they could help diversify Zambia’s copper production beyond older mines that have been operating for decades.
If successfully developed, the project could contribute to Zambia’s broader ambition of significantly increasing copper output and strengthening its position as one of the world’s leading suppliers of the metal.
Against this backdrop, efforts by Prospect Resources to expand its stake in the Mumbezhi project reflect growing investor interest in untapped copper resources across Zambia’s emerging mining regions.
