Bill Gates, Jeff Bezos-backed KoBold Metals to develop Zambian copper mine

Backed by billionaires Jeff Bezos and Bill Gates, KoBold Metals which is based in California announced that it may consider partnerships to expedite the development of a new copper mine in Zambia, which could come with a $2 billion price tag, Reuters reported.

Breakthrough Energy Ventures, a climate and technology fund, is one of KoBold’s investors. Other backers include Ray Dalio of Bridgewater Associates and Richard Branson of Virgin Group.

Although KoBold had previously stated that it intended to construct a new mine at its Mingomba project in Zambia within the decade, Josh Goldman, the company’s co-founder and president said that these plans were now being expedited due to the urgency of meeting the growing demand for critical metals.

“We’re on track to do it fast and it’s going to be one of the highest grade, large copper mines,” Goldman said on the sidelines of the African Mining Indaba.

“We will make it quicker than ten years. We continue to move fast and that the pace that we’re moving at is with the accelerator firmly on the floor.” He added

Moreover, Goldman told Reuters that the Silicon Valley start-up, which utilises artificial intelligence to find copper, cobalt, nickel, and lithium, may think about going public with its stock in the next three to four years.

With copper ore grades of roughly 5 per cent, KoBold said that the Mingomba deposit—where further exploration is currently ongoing—is on par with the Kakula deposit of Ivanhoe Mines in the Democratic Republic of the Congo in terms of quality.

According to the company, the ore body’s quality might make Mingomba the highest-grade discovery made in Zambia in a century.

Around 2027, mine development, including shaft sinking, may begin, according to KoBold Metals Africa CEO Mfikeyi Makayi, who spoke with Reuters.

The estimated $2 billion investment needed for the Zambian mine could be mitigated by the use of existing infrastructure from other operators on the central African copperbelt, according to Goldman.

“The issue globally, is not a lack of availability of capital. It is a lack of availability of high quality projects and where there are returns, there is capital,” Goldman said.

The US is working harder to identify alternate sources of supply for critical metals like nickel, copper, cobalt, and lithium, which is why there is a race to build the new mine. The development of battery-electric vehicles and the shift to clean energy are both greatly aided by the presence of metals.

While declining to comment on ongoing talks, Goldman stated that KoBold was open to partnerships at its other projects in Zambia as well. KoBold works with BHP and Rio Tinto on projects in Canada and Australia to find critical metals as well.

“There’s interest from financing parties and there’s interest from all types of parties in the (Mingomba) project,” he said. “We are receptive to conversations about all kinds of different partnerships.”