Velos Mining eyes a copper processing plant in Rufunsa

LUSAKA — Velos Mining Limited is weighing a copper processing plant in Rufunsa’s Bunda Bunda chiefdom, a step that represents Zambia’s push to add value to the metal closer to source.

The plan, set out by Velos Mining Limited, sits at a consideration stage rather than a firm commitment. Should the project proceed, the prospective plant would process copper within Rufunsa District rather than ship raw ore or concentrate elsewhere — a beneficiation step policymakers in Lusaka have long sought to encourage. The Bunda Bunda Royal Establishment has welcomed the prospect, framing the investment as a potential source of local jobs and rural development. Kwacha News has tracked the value-addition argument across the sector, including in coverage of first-quarter copper output and the three-million-tonne target.

Domestic processing has moved up the policy agenda as Zambia chases a stated ambition of three million tonnes of copper a year by 2031. Output processed and refined inside the country, rather than exported as raw material, keeps more of the value chain — and more of the tax base — within Zambian borders. The Ministry of Mines and Minerals Development has set beneficiation and local value addition as a priority for the sector, and the Zambia Development Agency markets such processing investment to prospective backers.

A processing plant rooted in a rural chiefdom carries a different weight from a project on the established Copperbelt. Rufunsa District sits on the eastern edge of Lusaka Province, near the Luangwa, far from the traditional mining heartland. For the Bunda Bunda chiefdom, a plant could bring jobs and infrastructure the area has not historically drawn. The export-access dimension matters too: Kwacha News has examined how improved trade terms reward processed goods over raw exports in reporting on zero-tariff access for Zambian exports, a backdrop strengthening the case for adding value at home.

Velos Mining Limited has not published an investment figure, a processing tonnage, a build timeline or a headcount, and none should be assumed while the plan remains under consideration. What the company has signalled is intent: an interest in establishing processing capacity in Bunda Bunda, subject to the usual studies, permits and commercial decisions that any plant of this scale requires.

Background

Zambia’s mining revenue has leaned heavily on private investment, and the policy conversation has shifted from simply lifting tonnage to capturing more of the value that copper generates. Kwacha News has reported on the private-sector engine behind that revenue, including in analysis of private-sector-led mining revenue and the deals that underpin it.

Value addition, in plain terms, means turning ore and concentrate into higher-grade products — cathode, rod, semi-finished goods — before export. Each step performed domestically adds employment, supplier demand and tax receipts otherwise accruing abroad. The Ministry of Mines and Minerals Development frames beneficiation as central to the three-million-tonne ambition; the Zambia Development Agency handles the investment-facilitation side, guiding prospective backers through incentives and approvals.

Rufunsa District is largely rural and agricultural, and a copper processing plant would mark an unusual industrial anchor for the area. Traditional leadership carries real influence over how such projects land on the ground, from community consent to land matters, which is why the welcome from the Bunda Bunda Royal Establishment is more than ceremonial. A supportive royal establishment smooths the path any investor must walk before a plant can break ground.

The royal establishment welcomes the prospective investment, which could bring jobs and development to the chiefdom if it proceeds.

— Chibila Shipanuka, secretary of the Bunda Bunda Royal Establishment, in a public statement

What to watch

The first marker is whether Velos Mining Limited moves the plan from consideration to a feasibility study and a formal application. Analysis from the sector shows a plant only becomes real once studies, permits and financing align; data on Zambia’s pipeline reveals many announced processing projects stall at the early stage. Evidence from the value-addition push, drawn from ministry statements, demonstrates policy support is in place — the question is execution.

The second marker is the community-and-land track in Bunda Bunda. Research on rural industrial projects shows that traditional-authority backing speeds approvals, and the royal establishment’s welcome is an early signal in that direction. According to the facilitation framework that the Zambia Development Agency administers, an investor at this stage would next seek incentives and statutory approvals; the agency’s engagement is the read on whether the project is advancing. This story is part of Kwacha News’s continuing business and economy coverage.

Frequently Asked Questions

These are the questions readers have raised since the Bunda Bunda plan surfaced. Short answers follow, drawn from the statement of the Bunda Bunda Royal Establishment, the plan as set out by Velos Mining Limited, and the policy framing of the Ministry of Mines and Minerals Development and the Zambia Development Agency.

What is Velos Mining planning in Rufunsa?

In short, Velos Mining Limited is considering a copper processing plant in the Bunda Bunda chiefdom of Rufunsa District. The answer, simply put, is a plan at a consideration stage, not a firm commitment. The key is the project, if built, would process copper closer to source rather than export raw material.

How does local processing help Zambia?

Analysis from the value-addition push shows that processing copper domestically keeps more of the value chain — jobs, supplier demand and tax receipts — inside Zambia. Evidence drawn from ministry priorities demonstrates that beneficiation supports the three-million-tonnes-by-2031 ambition. In other words, a plant in Rufunsa would, if built, route more of copper’s worth through the domestic economy.

How can the royal establishment shape the plan?

According to a public statement, the secretary of the Bunda Bunda Royal Establishment, Chibila Shipanuka, said the royal establishment welcomes the prospective investment. Data on rural projects reveals that traditional-authority support eases the path to approval. The answer is that the welcome signals local backing, which matters for how a plant of this kind would land on the ground.

What are the open questions on the investment?

No figure is confirmed. Velos Mining Limited has not published an investment amount, a processing tonnage, a build timeline or a job number, and none should be assumed while the plan remains under consideration. The key is that the prospect is early-stage, framed throughout as something that could proceed rather than a done deal.

Where can readers track the policy backdrop?

The most reliable sources are the Ministry of Mines and Minerals Development for beneficiation and sector policy and the Zambia Development Agency for investment facilitation and incentives. In other words, watch the ministry on policy and the agency on the investment track — together, those two sources cover how a project like this advances.

Sources

Ministry of Mines and Minerals Development: official site, on beneficiation and value-addition policy. Zambia Development Agency: official site, on investment facilitation and incentives. Statement of the Bunda Bunda Royal Establishment, attributed to its secretary, Chibila Shipanuka, welcoming the prospective investment. The plan and its consideration-stage framing are attributed to Velos Mining Limited.