First Quantum, Zambia miner reach deal to fast-track copper project
First Quantum Minerals (OTCPK:FQVLF) said Monday it signed an agreement with Zambian miner Mimosa Resources to fast-track development of a $200M copper project in African country.
The agreement envisages mining at the Fishtie copper project starting from 2026, ramping up to maximum production of 30K metric tons/year of copper by the end of the decade, the companies said.
Zambia has said it wants to triple its copper output and has reviewed its tax policy to increase mining exploration and production.
Separately, Panama's government might cut its forecast for gross domestic product growth in 2024 to 1%-2% from its previous estimate of 5%, an official told Reuters, after a court ruling prompted it to close First Quantum's (OTCPK:FQVLF) Cobre Panama project.
First Quantum (OTCPK:FQVLF) said Friday it had initiated international arbitration against Panama; some experts have calculated the government would need to pay at least $50B if it loses the case, equivalent to nearly 70% of GDP.
Bank of Montreal analyst Jackie Przybylowski said it is increasingly unlikely that First Quantum (OTCPK:FQVLF) will see a resolution to its mine issue in Panama before the May 2024 election, and "now assumes Cobre Panama will remain closed through the first nine months of 2024 as well as the remainder of 2023."