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The Financial Post reports in its Thursday, Feb. 22, edition that First Quantum Minerals is receiving a $500-million (U.S.) prepayment from a Chinese shareholder with hopes of strengthening its balance sheet after its key copper mine in Panama was forced to stop production late last year. The Post's Naimul Karim writes that in return, First Quantum will annually supply Jiangxi Copper with 50,000 tonnes of copper for three years from its Kansanshi mine in Zambia. The miner will also have to pay interest on the prepayment. Chief financial officer Ryan MacWilliam said on a conference call Wednesday: "We sell copper to Jiangxi, just as we sold to them in the past as a regular customer. The focus is really on having a strong balance sheet." First Quantum's agreement with Jiangxi comes at a time when Canada is trying to reduce its dependence on China for metals such as copper and lithium that are considered important for the transition away from fossil fuels. First Quantum's Cobre Panama mine, considered to be one of the largest new copper mines to open in the past decade, was responsible for nearly half its revenue in 2023, but with production stalled, the company is seeking to shore up its finances.
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