FQM Makes Move to Buy Out Government at Kansanshi
There have been reports from Bloomberg that First Quantum Minerals has offered to buy the Zambian government’s 20% stake in Kansanshi Mine for a rumoured $700 million.
FQM already own 80% of the mine whilst government owned ZCCM Investment Holdings owns the rest.
Last year a proposal was submitted which outlines $300 million to $400 million in cash and an equal amount in special royalties over the course of 10 years.
These reports are as of yet unconfirmed and an FQM spokesperson declined to comment.
Amos Chanda, Zambian President Edgar Lungu’s spokesman, didn’t immediately respond to a call and message seeking comment, and neither did a spokeswoman for ZCCM-IH.
The country’s revenue authority handed it a $7.9 billion tax bill last year, while an increase in royalties this year prompted First Quantum to announce plans to fire 2,500 workers. They have found it increasingly difficult to operate in Zambia of late with government interference significantly effecting mine viability.