First Quantum Minerals has shelved plans to sell a stake in its Kansanshi and Sentinel Mines, Chief Operating Officer Tristan Pascall said on Wednesday.
China’s Jiangxi Copper Co Ltd had been speculated as a potential suitor for minority interests in First Quantum’s Kansanshi and Sentinel mines.
Benchmark copper has pulled back after reaching a peak of $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.
Even so, First Quantum on Tuesday 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, Mr. Pascall said.
Zambian President Edgar Lungu faces his most serious challenge yet from businessman and serial presidential hopeful Hakainde Hichilema in elections set for August 12.
Whatever president we get, ECL or HH, he should screw those foreign mine owners right down to paying much more royalties and taxes!
Sell it to me.
No sale can take place until after elections.
QFM SHELVED PLANS TO SELL THEIR STAKE IN THE MINES DUE TO ANTICIPATED CHANGE IN GOVT AS THERE WILL CONSISTED MININGN POLICIES UNLIKE AT THE MOMENT. THAT IS THE WAY TO GO FORWARD.
The money is sweet and the price of copper is appreciating. Usual antics by mining houses to armtwist govt into reducing taxes. They even have the audacity to say that this must be done before elections. If you are not making money, go away. Others will run the mines.
They only want to sell when copper is low to test the waters but would never sell as they have invested way too much especially that they even are pulling power from Botswana which they have invested in.