Government wants to give FQM 100% of Kansanshi

Government wants to give FQM 100% of Kansanshi

– It’s one of the reasons Pius Kasolo was fired as  ZCCM-IH boss

– He refused to sanction the sale 

By Matthew Hill and Taonga Clifford Mitimingi (Bloomberg)

First Quantum Minerals Ltd. has offered to buy the Zambian government’s 20 percent stake in Africa’s biggest copper mine for as much as $700 million, according to two people familiar with the transaction.

Vancouver-based First Quantum already owns 80 percent of the Kansanshi mine in Zambia’s North-Western Province, while state-owned ZCCM Investments Holdings Plc holds the rest. The proposal, which was submitted last year, includes $300 million to $400 million in cash, and an equal amount in special royalties, over more than 10 years, said the people, who asked not to be identified because they’re not authorized to comment.

The deal would also include ZCCM-IH dropping a $1.4 billion legal claimagainst First Quantum over a loan the company received from Kansanshi, the people said. The government is still considering the proposal, according to one of the people.

“There are multiple unsolicited offers on the table, including from FQM, which are based on preferential share conversions,” a Ministry of Finance spokesman said in a text message Tuesday. The offers relate to the ministry’s 17 percent holding in ZCCM-IH and a sale would be subject to cabinet approval, it said.
First Quantum spokesman John Gladston declined to comment when contacted on Monday.
First Quantum and the government have been at loggerheads over other issues too. 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. The company has since backtracked on the proposal.
Kansanshi is First Quantum’s biggest mine and accounted for more than half the company’s revenue in 2017. The Canadian miner’s shares dropped 2.1 percent on Monday, taking the decline for the past year to 18 percent. That values the company at C$10 billion ($7.6 billion).

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COMMENTS

WORDPRESS: 5
  • comment-avatar
    ba bob 2 weeks ago

    anagulisa ama mines, that kabwanga wen you look how he waz looking way back awe mayo iyi kani sikasila,it will never rest

  • comment-avatar
    i m mr simumba NKD 2 weeks ago

    twafweni kunakonde bakateka plz ifintu tafyachinjapo nelo cimo imisebo amenshi fyo ifyobuteko bubomba

  • comment-avatar
    Mavuto 2 weeks ago

    LUNGU IS JUST SADDLY EXTREMELY CORRUPT
    Watch “We wanted Lungu to be like Sata – Kambwili” on YouTube

  • comment-avatar
    abilima 2 weeks ago

    PM – The results of HH’s actions are already seen. Meanwhile, these are just rumours.

  • comment-avatar

    And you accuse HH of having sold the mines !!. Just like MMD did, PF is trying to sale the mines. Mind you HH was neither a government of mine employee. This PF government will sale everything to service the Kaloba they have been taking without plans to pay back. What a irresponsible government !!