First Quantum Minerals
First Quantum Minerals Ltd. is a Canadian-based mining and metals company whose principal activities include mineral exploration, development and mining. Its main product is copper, which accounts for 80% of revenues as of 2016.
First Quantum's common shares are listed for trading on the Toronto Stock Exchange in Canada. Until 2016, First Quantum also maintained a secondary listing on the London Stock Exchange, in the United Kingdom.
History
First Quantum was founded in 1983 under the name Xenium Resources. It changed its name to Zeal Capital in 1989, First Quantum Ventures in 1993, and First Quantum Minerals in 1996. Its first significant operation was the Bwana Mkubwa mine in Zambia, acquired in 1996. In 2000, First Quantum acquired a partial interest in Mopani copper mines, a Zambian copper company. In 2001, it opened the Lonshi Copper Mine in the Democratic Republic of the Congo. Also in 2001, the company acquired the Kansanshi mine in Zambia.In 2006 First Quantum acquired London-based Adastra Minerals for in cash and stock. In 2008 First Quantum acquired Toronto-based Scandinavian Minerals Ltd developing the Kevitsa project in Finland. In December 2009, First Quantum acquired the Ravensthorpe Nickel Mine for US $340 million from BHP Billiton. In October 2010, First Quantum announced plans to acquire Antares Minerals for $450 million. In November 2010, First Quantum sold its stake in Equinox Minerals. In April 2013, First Quantum successfully completed a hostile takeover of Inmet Mining Corporation for CAD$5.1 billion. In June 2013, it was announced that FQM would have to lay off 500 workers at the Sentinel mine in Zambia as it could not sustain their upkeep while waiting for the lifting of a protection order on its operations from the Zambia Environmental Management Agency.
In 2016, it sold the Kevista mine to Boliden AB for US$712 million. In March 2017 First Quantum announced it had launched a $1.6 billion offering of Senior Notes due 2023 and 2025.
In December 2017, First Quantum was announced as "the major mining company that will complete the Pebble Limited Partnership" by Ron Thiessen, president and CEO of Northern Dynasty Minerals Ltd., which is currently the sole owner of the Pebble Partnership.
In 2016, First Quantum was ranked as being among the 13th best of 92 oil, gas, and mining companies on indigenous rights in the Arctic.
In December 2019 Chinese state company Jiangxi Copper agreed to buy a subsidiary of First Quantum's largest shareholder, Pangaea Investment Management Ltd, which holds 17.6 percent of First Quantum, causing shares to spike up to five percent.
Democratic Republic of the Congo
The Kolwezi tailings project was a major project to extract copper and cobalt from tailings of older mining operations around Kolwezi. It was expected to produce around 70,000 tonnes per year of copper metal and up to 14,000 tonnes per year of cobalt hydroxide.In August 2009, the DRC government revoked First Quantum's license due to a dispute over renegotiating the contract.
First Quantum stopped operations in September 2009, throwing about 700 people out of work.
First Quantum had spent $750 million on acquiring and developing the property.
First Quantum took out an action against the DRC government in the International Chamber of Commerce Court of Arbitration.
The Frontier Mine is an open pit copper mine located near Sakania.
First Quantum obtained exploration licenses in January 2001 and July 2002. Production began in 2007, and in 2010 the mine yielded 322,700 tonnes of copper.
The Lonshi Mine is an open pit copper mine that produces high-grade oxide ore that was transported to Zambia for processing at the Bwana Mkubwa SX/EW plant away. The mine was closed after the governor of Katanga province, Moses Katumbi, banned the export of ore to Zambia, insisting that it should be refined in Katanga.
In May 2010 a Congolese court ruled that FQM's Lonshi and Frontier copper mines had been awarded illegally and that they should revert to state-owned Sodimico.
According to FQM the ruling was due to FQM's decision to contest the expropriation of their Kolwezi tailings project, which was later sold to the Kazakh mining company Eurasian Natural Resources Corporation.
Operations
First Quantum currently operates mines and development projects in Africa, Australia, Finland, Spain, Turkey and Latin America. In 2016 First Quantum produced 539,458 tonnes of copper, 23,624 tonnes contained tonnes of nickel, 214,012 ounces of gold and 28,862 tonnes of zinc. Copper was responsible for 80% of revenues, gold 10%, and nickel 7%. As of December 2017, First Quantum operates six mines.Operating Mineshttps://mining-atlas.com/company/First-Quantum-Minerals.php ''Mining Atlas'' "First Quantum Minerals Operations" Retrieved January 11, 2018.
- Kansanshi mine, near Solwezi in Zambia. Main product copper, by-product gold. Open-pit mine, opened in 2005
- Guelb Mohgrein Mine, near Akjoujt, Mauritania. Main product copper, by-product gold. Open pit mine, opened 2006.
- Sentinel Mine, a copper mine in north-west Zambia opened to commercial production in 2016
- Çayeli mine, a copper/zinc mine in eastern Turkey. This mine was acquired through the take-over of Inmet Mining Corporation, and started production in 1994
- Las Cruces mine, a copper mine in Sevilla, Spain, acquired through the take-over of Inmet Mining Corporation
- Pyhäsalmi mine, a copper/zinc mine in central Finland, acquired through the take-over of Inmet Mining Corporation
Other Investments/Projects
- Partial interest in Mopani Copper Mines
- Fishtie copper project. At the end of September 2012, First Quantum Minerals announced that it had entered into a joint venture with a Zambian-based mining company called Mimosa Resources. The purpose of the venture is to develop the Fishtie copper project in the Central province of Zambia, in the Mkushi District near the border with the Democratic Republic of Congo.
- Cobre Panama, a copper project in Panama acquired through Inmet Mining Corporation
- Taca Taca, a copper project in Argentina acquired through the purchase of Lumina Copper in 2014
- Haquira, a copper deposit in southern Peru acquired through the purchase of Antares Minerals in 2010
- Pebble Mine, the most significant undeveloped copper and gold resource in the world. Pending an option agreement to purchase 50% interest in the PLP
Former/Mothballed Mines
- Bwana Mkubwa, copper SX/EW plant and mine. This mine was closed in 2010.
- Kevitsa mine, Sodankylä, Finland. Main products are nickel and copper, by product PGE elements. Open pit mine opened in August 2012, and sold in June 2016 to Boliden AB.
- Ravensthorpe Nickel Mine, a nickel mine in Western Australia, opened in December 2011, mothballed in 2017.
- Troilus Gold-Copper Mine, closed in 2008 by Inmet, located in northern Quebec
- Winston Lake Zinc-Copper Mine. This mine was closed in 1998 by Inmet, and is located near Winston Lake, Thunder Bay District, Ontario.
- Sturgeon Lake Copper-Zinc Mine, closed, located near Sturgeon Lake, Kenora District, Ontario