More trouble is looming on the horizon for First Quantum Minerals and other companies operating in Zambia.
Just days after it was reported that First Quantum (FQM) is fighting the Mineworkers Union of Zambia (MUZ) and National Union of Miners and Allied Workers (NUMAW) over a wage agreement at the Kansanshi copper mine, Lusaktimes.com reports that FQM is among over 400 companies at risk of having their exploration or mineral processing licences cancelled for failing to live up to legal obligations:
“Non-payment of area charges on the anniversary of grant, contrary to section 143 of the Mines and Minerals Development Act, failure to commence and carry out prospecting operations contrary to section 19 of the Mines and Minerals Development Act, and failure to submit quarterly and annual exploration reports, contrary to provisions of the Act,” the notice reads in part.
The Zambian government is giving the companies 60 days to comply with the notice directed at affected companies, which include First Quantum, BHP Billiton, TEAL Development Zambia Limited, Ndola Lime Company Limited, Zhongui Mining Industry Limited and Euro Africa Kalengwa Mines Limited.
First Quantum says it has complied with the statutory requirements, arguing that the disputed Kipushi prospecting licence has been in dispute for three years reports Lusaktimes.com:
“The dispute has put First Quantum Minerals in a position in which it cannot do anything until the matter is resolved,” a company spokesperson said in response to a Sunday Mail query.