Vancouver-based First Quantum Minerals Ltd. (TSX:FM) has secured a US$1.25 billion settlement for its assets in the Democratic Republic of Congo (DRC), which settles a long legal saga for the local mining company.
“I am satisfied that we have reached this agreement,” Philip Pascall, First Quantum CEO and chairman, said in a company statement released this morning.
“It brings to a close First Quantum’s current involvement in the DRC and secures substantial compensation for our shareholders for the loss they have suffered.”
The settlement with Eurasian Natural Resources Corp. PLC (ENRC) will see Quantum dispose of its residual claims and assets in the Kolwezi Tailings project and the Frontier and Lonshi mines and related exploration interests, all in the Katanga Province of the DRC.
In September 2010, First Quantum announced that it had launched legal action against British Virgin Islands company Highwinds Group, a subsidiary of ENRC, after First Quantum’s $400 million investment in the DRC was seized. (See. “First Quantum files lawsuit over Congo mine seizure” – BIV Business Today, September 15, 2010).
Meanwhile, while First Quantum resolved one of its African headaches, it still has others in Zambia, where a labour dispute has halted production at one of its mines.
“Every effort is being made to understand and resolve the issues behind the dispute and we will keep our stakeholders informed of developments as warranted,” Pascall said in news release.
At press time, First Quantum’s stock price was up nearly 6% to $22.28.
Jenny Wagler
@JennyWagler_BIV