Anglo American and Arc Minerals End Zambia Copper Venture

Anglo American (LON: AAL) and junior partner Arc Minerals (LON: ARCMA) have mutually agreed to terminate their copper and cobalt exploration joint venture in Zambia, marking the end of Anglo American’s first new investment in the country in nearly two decades.

The partnership, initiated in 2022, saw no drilling activity over the past year, leading to the decision to part ways. Under the terms of the separation, approximately $800,000 will remain in the account of Handa Resources, the entity holding Anglo’s interests. Anglo American will relinquish its shares, returning full control of the project to Arc Minerals.

Following the announcement, Arc Minerals’ shares plummeted, dropping as much as 55% in early London trading before closing 48% lower at 0.55p. The company’s stock has declined 58% in 2025, with a market capitalization of £8 million ($11 million).

Arc Minerals’ Executive Chairperson Nick von Schirnding expressed regret over the split but highlighted the potential of the Kalaba copper-cobalt mine, describing it as one of Africa’s most prospective copper tenements, with only a small portion drilled to date. He indicated that Arc will explore options for the assets, including seeking a new joint venture partner.

Von Schirnding also addressed ongoing legal challenges in Zambia, accusing an unnamed individual of attempting to “hold the company to ransom” and reaffirmed Arc’s commitment to resolving the matter through legal channels.

Despite the setback, Arc Minerals stated that with its current cash reserves and funds remaining in Handa Resources, it does not anticipate the need to raise new equity in the near term to sustain operations.

This development underscores the challenges and complexities of mining investments in Zambia, even as the country remains a key player in the global copper and cobalt markets.