Indian mining contractor Laxyo Ltd is entering the African underground mining market with a INR2bn ($23mn) raise-boring contract at Zambia's Mopani Copper Mines, as the company prepares for an initial public offering and seeks to expand beyond its home market.

The project will be executed through subsidiary Laxyo Evapeta Zambia Ltd and accounts for 12.6% of the company's order book. Mopani Copper Mines, one of Zambia's largest copper producers, is jointly owned by UAE-based International Resources Holding and Zambia's ZCCM Investments Holdings (LUSE: ZCCM-IH).

Raise boring is a mechanised underground mining technique used to create ventilation shafts, ore passes and emergency escape routes without explosives. The method is favoured for its safety and efficiency and is widely used in deep underground mining operations.

Although the Mopani award marks Laxyo's first overseas raise-boring contract, the company has been active in Africa for several years through its operations and maintenance business. In 2010, it acquired a 50% stake in South Africa-based operation and maintenance specialist AICM and subsequently established subsidiaries in South Africa and Zambia.

According to its draft prospectus, Laxyo has also undertaken engineering and maintenance assignments for mining and industrial clients in Zambia and South Africa, giving it an operational presence in the region before expanding into specialised underground mining services.

The Mopani project, therefore, represents an escalation of the company's African strategy rather than its first exposure to the continent. The award gives Laxyo a foothold in a specialised segment served by established contractors including Master Drilling Group (JSE: MDI), Murray & Roberts Holdings (JSE: MUR) and privately held Canadian company Redpath Mining.

Laxyo has filed draft papers with the Securities and Exchange Board of India seeking to raise up to INR1.5bn ($17mn) through an IPO. The company said proceeds would be used for debt reduction, equipment purchases and working capital requirements.

According to the company's draft red herring prospectus, the Indian raise-boring market is projected to grow at a compound annual growth rate of approximately 27.3% between FY25 and FY31, reaching an estimated size of INR5.75bn ($67mn).

Founded in 2007, Laxyo Limited (formerly known as Laxyo Energy Limited) has evolved into a diversified infrastructure services group with four business segments: railway infrastructure, mining services and raise-boring operations, dredging and reclamation, and operation and maintenance services for industrial and thermal power plants.

The expansion comes as Zambia seeks to raise annual copper production to more than 3mn tonnes by 2031, nearly tripling current output. Industry analysts expect underground mine development to accelerate as investment in new shafts and mine expansions gathers pace, creating additional demand for specialised contractors.

Zambia produced around 800,000-850,000 tonnes of copper in 2025, making it Africa's second-largest producer after the Democratic Republic of the Congo, which mined approximately 3.3mn tonnes. Botswana and Namibia are also significant producers on the continent.

Zambia hosts several major mining operations, including First Quantum Minerals' (TSX: FM) Kansanshi and Sentinel mines, Barrick Mining's (TSX: ABX; NYSE: B) Lumwana mine, Mopani Copper Mines, Konkola Copper Mines controlled by Indian company Vedanta Resources, and the Chambishi mine operated by China Nonferrous Metal Mining Group (HKEX: 1258).

Indian companies have steadily expanded their presence in Africa's mining sector over the past two decades, attracted by the continent's rich reserves of copper, coal, gold and critical minerals.

Indian companies have steadily expanded their presence in Africa's mining sector over the past two decades, attracted by the continent's reserves of copper, coal, gold and critical minerals.

Vedanta Resources, parent of Konkola Copper Mines, is controlled by Vedanta Ltd (NSE: VEDL; BSE: 500295), one of India's largest diversified mining groups. Coal India Ltd (NSE: COALINDIA; BSE: 533278) has explored coal projects in Mozambique, while Tata Steel Ltd (NSE: TATASTEEL; BSE: 500470) has maintained mineral interests in South Africa and Côte d'Ivoire.

Jindal Steel & Power Ltd (NSE: JINDALSTEL; BSE: 532286) has invested in coal and power assets in Mozambique. State-owned NMDC Ltd (NSE: NMDC; BSE: 526371) has also examined opportunities in southern Africa. Engineering and mining services firms are increasingly following Indian resource investors into the region.

Tata Steel has maintained mining interests in Côte d'Ivoire and South Africa, and Jindal Steel and Power has invested in coal mining and power projects in Mozambique. State-owned NMDC has explored opportunities in southern Africa, while engineering and mining services firms have increasingly followed Indian resource investors into the region. 

Zambia has extended the suspension of a 10% export duty on copper concentrates until September 30, providing relief to mining companies grappling with rising stockpiles of unprocessed material amid prolonged smelter maintenance programmes and processing constraints across the country's copper sector.

The measure, first introduced in August 2025, is intended to support copper producers whose processing operations have been disrupted by technical challenges and repair work at major smelting facilities. According to a government notice cited by Reuters on June 3, the latest extension covers 271,742 tonnes of copper concentrates approved for duty-free export.

The decision highlights the balancing act facing Zambia's government as it seeks to promote domestic mineral processing while avoiding production bottlenecks that could undermine growth in one of the country's most important industries.