KoBold Metals Announces Historic Copper Discovery In Zambia

KoBold Metals announced the discovery of potentially the largest copper deposit in Zambia’s history, per Bloomberg's report. The Mingomba asset, located in Zambia, is expected to play a significant role in the country’s economy and aligns with President Hakainde Hichilema‘s vision to boost copper production.

The California-based startup, supported by a consortium of billionaires including Bill Gates and Jeff Bezos, revealed the groundbreaking discovery at the ongoing mining Indaba in Cape Town. Utilizing AI, KoBold collects and analyzes multiple streams of data with the goal of mapping the Earth's crust. The focus is not only on copper but on all the minerals and metals necessary for the energy transition.

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According to KoBold Metals President Josh Goldman, Mingomba’s potential rivals that of the Kamoa-Kakula mine in the neighboring Democratic Republic of Congo. That mine, operated by Ivanhoe Mines Ltd IVPAF and Zijin Mining Group ZIJMF produced almost 400,000 tons of copper in 2023.

“It’s going to be one of the highest grade, large underground mines," Goldman said at the conference, clarifying that the company plans to fast-track the development of the $2 billion copper mine, aiming for first production in the early 2030s. However, further feasibility studies and resource estimates are required before proceeding with construction.

"We care enormously what the price of these commodities is in 2035 and we don't care what it is in 2024," Goldman stated, stating that the company has enough capital to focus on the long-term investment. He believed that lack of capital is not an issue but rather a lack of availability of high-quality projects.

KoBold spent $100 million on exploration in 2023, and it could exceed that figure in 2024. Those figures are outstanding for a startup and similar to industry giants like BHP Group BHP or Rio Tinto Ltd. RTNTF.

Battery metals, including cobalt, nickel, and lithium, have recently suffered owing to political instability, supply chain issues and short-term surpluses. Still, analysts are foreseeing competition for these resources, with copper being one of the key candidates for future shortages due to escalating demand and slow supply growth.

Besides Mingomba, KoBold is exploring over 60 other areas, mostly in Australia, Canada and the U.S. Its prospective lithium deposits include Nevada, Quebec and Namibia.

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