First Quantum shelves stake sale for Zambia copper mines

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First Quantum shelves stake sale for Zambia copper mines

First Quantum, Canadian copper miner has shelved plans to sell a stake in its Zambian copper mines, Chief Operating Officer Tristan Pascall made the announcement and said China’s Jiangxi Copper Co Ltd had been speculated as a potential suitor for minority interests in First Quantum’s Kansanshi and Sentinel mines.

Resurgence of the pandemic

The Benchmark copper has pulled back after reaching a peak of US $10,747.50 a tonne in May, hit by concerns about a resurgence of the pandemic, the potential for central banks to taper stimulus and China’s sale of strategic reserves due to concerns about rising raw material prices. First Quantum also flagged rising costs on the back of higher Zambian royalty rates driven by increased copper prices.

“There has been limited progress on talks with the Zambian government for terms which would pave the way for an expansion of ore processing at Kansanshi ahead of national elections. Zambia’s ZCCM-IH sealed its acquisition of Mopani Copper Mines in March giving the state a deeper understanding of mine operations. We don’t see any significant risk there given where tax rates are at the moment,” said Pascall.

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