Mining Focus Africa

Top Menu

  • Subscribe
  • Minerals
  • Projects
  • Machinery
  • Video’s
  • Advertise
  • Magazine
  • Directory

Main Menu

  • Home
  • International News
  • Local News
  • Events
  • Business
  • Energy
  • Technology
  • Contact Us
Sign in / Join

Login

Welcome! Login in to your account
Lost your password?

Lost Password

Back to login
  • Subscribe
  • Minerals
  • Projects
  • Machinery
  • Video’s
  • Advertise
  • Magazine
  • Directory

logo

Header Banner

Mining Focus Africa

  • Home
  • International News
  • Local News
  • Events
  • Business
  • Energy
  • Technology
  • Contact Us
  • SRK’s decade in DRC evolves to local ownership

  • BIA Group to supply Furukawa & RTDrill brands across Central and West Africa for Euroforgroup

  • Mozambique the next frontier in graphite production

  • BASE Resources passes important resource milestones in Kenya

  • Cable, components and critical space exploration

  • Africa’s edge in the green mineral economy

  • Keeping the faith in EA public participation processes during Covid-19

  • Ivanplats seeks $420m financing to develop South Africa’s Platreef mine

  • Transforming the Logistics Operations of the African Mining Industry

  • Mining Indaba insights: Mines push on as South Africa plays catch-up

Projects
Home›Projects›EXCLUSIVE: CANADA’S FIRST QUANTUM WEIGHS $1 BILLION ZAMBIAN COPPER MINE EXPANSION – DOCUMENT

EXCLUSIVE: CANADA’S FIRST QUANTUM WEIGHS $1 BILLION ZAMBIAN COPPER MINE EXPANSION – DOCUMENT

By Micheal van Wyk
January 4, 2020
163
0
Share:

TORONTO/LONDON (Reuters) – Canadian miner First Quantum Minerals Ltd is weighing investment of around $1 billion to lift output at Africa’s biggest copper mine in Zambia, a company document seen by Reuters showed, despite a feud with state miner ZCCM-IH over project funding.

The investment would add a decade of life and head off production declines at the Kansanshi copper mine, increasing annual production to 300,000 tonnes over time from an expected 235,000 tonnes last year, according to a company presentation given to Zambian government officials.

But securing board approval, which would be needed over the coming year, is likely to be complicated by disputes between miners and the Zambian government over taxes and assets, according to analysts and miners with knowledge of the country.

Western miners are on edge as Zambia and neighboring countries seek to increase their share of revenue from natural resources.

Zambia hiked copper royalty taxes by 1.5 percentage points last year and introduced a new 10% rate when global prices exceed $7,500 per tonne, consultancy Verisk Maplecroft said.

Mines Minister Barnaby Mulenga last month said copper miners would also have to account for the gold they produce to boost state revenue.

“We do not anticipate any fresh investments to extend the life of copper mines while this, and increased taxation, hangs over miners,” Verisk Maplecroft senior analyst Indigo Ellis told Reuters on Friday.

A source close to First Quantum said the plans will be presented to the company’s board this year but the project is unlikely to win approval without significant changes to Zambia’s tax regime.

Shares of First Quantum extended losses after the Reuters story and were down 6.3% at C$12.44 on Friday afternoon in Toronto.

First Quantum contemplated expanding Kansanshi in 2011 at a cost of $1.5 billion, but that project was shelved.

Without investment, output would drop sharply from 2022 to about 130,000 tonnes by the middle of this decade, the presentation shows.

Canadian-listed First Quantum is studying expansion amid a dispute with Zambian state miner ZCCM-IH over profits from the mine that have been set aside for the project.

ZCCM-IH owns 20% of Kansanshi Mining PLC, with First Quantum holding the balance.

First Quantum last month began arbitration proceedings against ZCCM-IH following a criminal complaint made by the state miner to Zambian police over a transfer by Kansanshi Mining to a First Quantum subsidiary.

At issue is a transfer of $520 million, a separate document seen by Reuters showed. Two sources said the money had been set aside in a high-interest account to help fund expansion at Kansanshi.

First Quantum was not available for immediate comment on Friday. ZCCM-IH did not immediately respond to a Reuters query.

Sources declined to be identified as the information was not public.

Reporting by Jeff Lewis in Toronto and Barbara Lewis in London; Editing by Denny Thomas and Matthew Lewis

Previous Article

Why the outlook for fixing Nigeria’s energy ...

Next Article

Mining – the future in 2020: An ...

0
Shares
  • 0
  • +
  • 0

Micheal van Wyk

Related articles More from author

  • BusinessProjects

    juwi South Africa to build solar PV plant at Pan African’s Evander Mines

    December 16, 2020
    By Micheal van Wyk
  • BusinessProjects

    Zambia: World Bank lends $65 million for sanitation around mining sights

    January 8, 2021
    By Micheal van Wyk
  • Projects

    World’s first floating nuclear power plant docks in Russia

    September 16, 2019
    By Micheal van Wyk
  • Projects

    Court stops construction of Kenya’s coal power plant. Here’s why

    July 1, 2019
    By Micheal van Wyk
  • Projects

    Buffalo Coal Granted Mining Rights at Aviemore North Adit Reserves in Dundee

    September 28, 2020
    By Micheal van Wyk
  • Projects

    Rio completes initial work at Zambia copper project

    December 3, 2020
    By Micheal van Wyk

Leave a reply Cancel reply

You may be interested in

  • Projects

    Kenmare starts processing at Pilivili in Mozambique

  • Minerals

    Base Resources ups its 2020 production guidance

  • Business

    Zambia copper explorer has exclusivity agreement with Anglo American

Watch

  • EnergyVideo's

    South Africa reveals recovery plan for mining and energy sector

    Government has tabled a recovery plan to restore business confidence, stimulate investments, safeguard and create jobs in the mining and energy sector. “The Mining and Energy Recovery Plan intends to ...
  • Video's

    The draft petroleum Bill, skills development and how SA can benefit from Mozambique’s LNG project

    Adrian Strydom, acting CEO at South African Oil and Gas Association chats to African Oil Week on the draft Upstream Petroleum Resource Development Bill, Integrated Resource Plan, skill development for ...
  • Video's

    Steel production likely to stagnate or decline this year, says Roskill

    https://cisp.cachefly.net/assets/articles/attachments/82191_2020-05-05_roskill.mp4
  • Video's

    South Africa’s economy dire in comparison to rest of Africa

      Dr Azar Jammine, Director and Chief Economist at Econometrix, highlights the economic disparity between South Africa, West Africa and East Africa and how this could be an opportunity for ...
  • EventsVideo's

    Good Chemistry at Mining Indaba

    Under the umbrella of the new AECI Mining pillar, AECI Mining Explosives (AEL Intelligent Blasting) and AECI Mining Chemicals (Senmin), will offer solutions that focus on the customer and their ...

Timeline

  • February 24, 2021

    SRK’s decade in DRC evolves to local ownership

  • February 24, 2021

    BIA Group to supply Furukawa & RTDrill brands across Central and West Africa for Euroforgroup

  • February 23, 2021

    Mozambique the next frontier in graphite production

  • February 22, 2021

    BASE Resources passes important resource milestones in Kenya

  • February 19, 2021

    Cable, components and critical space exploration

Find us on Facebook

About Us

Mining Focus Africa provides valuable information on minerals’, events, exploration, energy and mining developments throughout Africa. It reports on the continent’s renaissance in mining and market opportunities associated with it.

Published 4 times a year, Mining Focus Africa is also available as a value-adding Digital online platform including weekly newsletter, online subscription and quarterly E-magazine downloads.

  • Recent

  • Popular

  • Comments

  • SRK’s decade in DRC evolves to local ownership

    By Micheal van Wyk
    February 24, 2021
  • BIA Group to supply Furukawa & RTDrill brands across Central and West Africa for Euroforgroup

    By Micheal van Wyk
    February 24, 2021
  • Mozambique the next frontier in graphite production

    By Micheal van Wyk
    February 23, 2021
  • BASE Resources passes important resource milestones in Kenya

    By Micheal van Wyk
    February 22, 2021
  • The way that minerals are mined affects conflict in eastern Congo

    By Micheal van Wyk
    July 30, 2019
  • Miners welcome stance against ‘blatant corruption’ in South Africa

    By Micheal van Wyk
    August 31, 2020
  • Wafi-Golpu a ‘game-changer’ for growing South Africa miner

    By Micheal van Wyk
    December 7, 2020
  • East Africa mining boom spells doom for environment

    By Micheal van Wyk
    December 4, 2020
  • JAQLEE CONSTRUCTION COMMENCING
    on
    February 1, 2021

    Mota-Engil picks up mining contract at Vedanta’s Gamsberg mine

    Good Day. Would like ...
  • www.xmc.pl
    on
    January 31, 2021

    Shock resignation of AngloGold Ashanti CEO after less than two years

    Spot on with this ...
  • Edison Forbes
    on
    January 6, 2021

    Contact Us

    I think this is ...
  • หนังโป๊
    on
    January 4, 2021

    Miners welcome stance against ‘blatant corruption’ in South Africa

    Excellent article. I certainly ...

Contact Us

Head Office
5 The Ferns, 364 Pretoria Avenue, Randburg, South Africa, 2194

Tell : +27 67 212 7565
Fax: 086 678 6956
www.lothbrokmedia.com

Accounts
Info@lothbrokmedia.com

Zambia
33 Malata Road, Madras,Lusaka, Zambia 3928Tell:+ 26 76 136 3654
Email Info
Info@miningfocusafrica.com

 

  • Contact
  • Adverts
© Copyright www.miningfocusafrica.com. All rights reserved.
Please wait...

Subscribe to our newsletter

Want to be notified when our article is published? Enter your email address and name below to be the first to know.
SIGN UP FOR NEWSLETTER NOW