Rail corridor to Angola opens faster mineral trade

Logistics has long been the single most expensive challenge facing mining companies

The development of the Lobito Corridor, a gamechanger for Africa, offers the mining industry a faster, cheaper and cleaner route to market.

This was a key takeaway from the Lobito Webinar held on September 18 by Mining Review Africa, where industry leaders emphasised how the corridor will unlock access to cobalt, copper and zinc from the Democratic Republic of Congo (DRC) and Zambia, while reducing transport bottlenecks.

Currently, minerals are towed thousands of kilometers by truck to ports such as Durban and Dar es Salaam, a costly and unreliable system plagued by delays and congestion.

“With the development of this Lobito Corridor, it’s really going to open up a new channel, on rail, avoiding trucking delays and ensuring a steadier supply of critical minerals to the globe,” said Zach Hartwanger from Open Mineral.

Rail as a smart logistics choice

For mining companies, logistics have long been the single most expensive challenge. Alex Pickard from Ivanhoe Mines explained that up to one-third of the company’s operating costs at the Kamoa-Kakula copper mine and half of the costs at its Kipushi zinc mine come from transport.

“Moving materials by rail is not only more efficient, but it also cuts the distance and reduces emissions,” he said. Ivanhoe has already signed a five-year agreement to use the Lobito Corridor.

The project is being advanced through the Lobito Atlantic Railway, which has been operational since January 2024 after winning an Angolan government tender. “The aim was to transform the Benguela railway into one of the most efficient transport links in Africa,” said Nuno Chaves Frota, Legal & Compliance Director at Lobito Atlantic Railway (LAR).

The line now connects DRC, Zambia and Angola directly to the Atlantic port of Lobito.

Beyond mining, panelists highlighted the broader socioeconomic benefits, including new jobs and skills generated during construction and operation, as well as opportunities in agro-processing, light manufacturing, and renewable energy.

Dr. Theophilus Acheampong, Head of Markets & Research, Critical Minerals Africa Group, highlighted that the corridor could “help deepen regional integration and create new industrial hubs,” broadening economic development beyond mining.

The project is currently self-funded by its shareholders, including Trafigura and Mota-Engil, though talks are underway with development finance institutions to scale up infrastructure investment. Governments are not directly financing the corridor.

Cover photo:  humannet©123rf