Mimosa, the current owner of 37.5% of Kashime Copper Ltd, which holds the Fishtie project, has recently inked an agreement with First Quantum. This new deal will see Mimosa’s stake surge to 75% after the completion of a feasibility study and the securing of financing to take the project to technical completion, the companies announced.
Both parties were quick to note that each stage of development is time-bound to ensure the project is operational within a reasonable timeframe. First Quantum has committed to financing and conducting exploration within the wider license area, outside of Fishtie. The total investment of $200 million for the project will be spearheaded by Mimosa Resources.
The agreement comes amidst First Quantum facing pressure to shut down its colossal copper mine in Panama, an operation that accounts for about 1.5% of the world’s copper production. This mine contributes around 5% to Panama’s GDP and is responsible for 75% of its goods exports.
Zambia, on the other hand, has unveiled ambitious plans to triple its copper output by the end of the decade and has recently revised its tax policy to attract more investment in the sector.
“We are determined that this resource should be developed now that the investment climate in Zambia has improved,” stated First Quantum Minerals country manager, Godwim Beene, in the official statement.
“In the search for a genuine ‘social licence to operate’, we believe that Zambians need to play a leading role in the country’s future mining development,” expressed Mimosa Resources executive chairman, Jordan Soko. “As such, we believe this will not only be a step forward for the Fishtie project, but also for mining in Zambia more generally.”
First Quantum’s presence in Zambia, Africa’s second-largest copper producer, includes the Kansanshi mine and smelter in Solwezi and the Sentinel mine in Kalumbila.