Boston, MA -- (SBWIRE) -- 01/07/2014 -- Zambia's mining sector is set to continue on a positive trajectory over our forecast period to 2017. Copper is the mainstay of the mining sector, and we expect solid growth in output as the country's main producers forge ahead with expansion plans. Growing coal production will contribute to mining sector growth over coming years, as strong domestic demand for the fuel incentivizes increased mine output.
Downside Risks Lurk
Recent regulatory developments in Zambia have threatened to deter investment as the government has shown itself capable and willing to take a hard-line approach towards decisions made by foreign companies operating in the country. In Q413 Vedanta Resources announced its intention to replace more than 1,500 Zambian workers with machines at its copper unit, Konkola Copper Mines. Zambian President Michael Sata took a hard-line approach, threatening to revoke Konkola's licence to mine in the country.
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