China's JCHX Mining plans to invest $300 million to breathe new life into Zambia's Lubambe Copper Mines which it recently acquired, Zambia's state mining investment unit, ZCCM-IH said on Thursday.

JCHX Mining, a Shanghai-listed mining services and contracting company, holds an 80% stake in the mine, while the remaining 20% is owned by Zambia’s state mining investment arm, ZCCM Investments Holdings (ZCCM-IH). JCHX will invest in the Lubambe operations and extend the life of the copper mine.

Some of the investment will go toward sinking a new shaft at Lubambe over the next two to five years which could help it access copper deposits below 1,000 meters, the mine's CEO Wang Gang said on the Lubambe mine website.

ZCCM-IH has expressed its intention to negotiate a new shareholders agreement and commercial terms with JCHX. Situated approximately 468km north of Lusaka and 40m from Chingola, the Lubambe Copper Mine is an underground operation that began in 2012 and spans a lease area of around 228km².

It features a processing plant with the capacity to handle up to 2.4 million tonnes per annum and is characterised by its two distinct limbs, the East and South Limbs.

Previously owned by African Rainbow Minerals and Vale S.A., Lubambe produced about 15,000 tons of copper last year but needs to raise output to about 2,500 tons a month to become sustainable, it says on its website.

Earlier this month, ZCCM-IH’s investee company, Maamba Collieries (MCL), received two large-scale exploration licences for lithium and other minerals in Zambia’s Southern Province.

Holding a 35% stake in MCL, ZCCM-IH is looking to commence exploration promptly to confirm the presence of these minerals.

The licences, valid for four years, will allow MCL to conduct detailed exploration and potentially ascertain the quantum of resources and reserves.

These exploration activities align with ZCCM-IH’s strategic plan for 2020–26, which includes the exploration of critical battery metals like lithium, as the company seeks to diversify its mineral commodity base.