Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
First Quantum Minerals has temporarily suspended operations in the area of a fatal accident at its Kansanshi copper mine in Zambia, the Canadian miner said on Monday.
First Quantum said it has launched an internal investigation into the accident on Sunday involving a tracked dozer and a light vehicle that killed one employee.
“The site of the accident was immediately secured and operations in the area …will resume once it is determined that it can be done so in a safe manner,” the Toronto-based miner said in a statement.
There have been past safety issues at the Kansanshi mine, which produced 134,827 tonnes of copper and 68,970 ounces of gold last year. Two contractors at First Quantum’s Zambia operations, including one at Kansanshi, died last November in separate accidents.
Shares of First Quantum were down by 0.6% at the Toronto Stock Exchange on Monday at 11.47 a.m. (1547 GMT)
For First Quantum, the Zambian mines have become important revenue sources after its flagship Cobre Panama mine in Panama was shut last December after public protests and a Supreme Court ruling nullifying the company’s mining contract.
Since that ruling, First Quantum has had to take up a series of capital restructuring measures, including a $500 million, three-year copper prepayment agreement with Chinese miner Jiangxi Copper. As per the agreement, the Kansanshi mine will deliver 50kt of copper anode annually at the market price.
For the quarter ending June 30, the Kansashi mine contributed $531 million to First Quantum’s total revenue of $1.2 billion.
(By Sourasis Bose and Divya Rajagopal; Editing by Tasim Zahid)
2 Comments
Emmanuel Fulawulu
Too bad that’s not a good record for mutibillion dollar business
Leon Kalembe
Too bad the for record