First Quantum to fast-track Zambia project after Panama blow

Canada’s First Quantum Minerals (TSX: FM) has signed a deal with Zambia’s Mimosa Resources to fast-track development of their Fishtie copper project in the south-central African country, near the border with the Democratic Republic of Congo.

The companies, which have been exploring the asset since 2012, now see Fishtie kicking off production in 2026, ramping up to production to 30,000 tonnes of copper a year by the end of the decade.

The agreement comes at a time when First Quantum is being asked to close its giant copper mine in Panama, which accounts for about 1.5% of the world’s production of the metal. The operation makes up about 5% of Panama’s GDP and 75% of its export of goods. It produced 340,430 tonnes copper in 2022.

The company also has a strong production base in Zambia — Africa’s second-largest copper producer. It operates the Kansanshi mine and smelter in Solwezi (which produced 146,280 tonnes copper and 109,600 oz. gold last year) and the Sentinel mine in Kalumbila (242,450 tonnes copper). 

Mimosa currently owns 37.5% of Kashime Copper Ltd., which holds the Fishtie project, in Central Province. The fresh agreement with First Quantum will see Mimosa’s stake grow to 75% through the completion of a feasibility study and the raising of the necessary financing to take the project to technical completion, the companies said. 

Each stage of development is time-bound to ensure the project is brought into operations within a reasonable timeframe, the partners noted. 

First Quantum has committed to finance and conduct exploration within the wider licence area, outside of Fishtie. Mimosa Resources will lead the raising of a total investment of US$200 million for the project.

Zambia, which has unveiled plans to triple its copper output by the end of the decade, recently reviewed its tax policy to increase investment in the sector.

“We are determined that this resource should be developed now that the investment climate in Zambia has improved,” First Quantum Minerals country manager Godwin Beene said in a 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,” Mimosa Resources executive chairman, Jordan Soko, noted.  “As such, we believe this will not only be a step forward for the Fishtie project, but also for mining in Zambia more generally.”