S&C Advises First Quantum in Resolving Disputes and Expanding Operations in ZambiaJune 17, 2022
First Quantum Minerals, through its Zambian subsidiaries FQM Trident Limited (Trident) and Kansanshi Mining PLC (KMP), announced on May 9 that it had entered into a series of agreements with the Government of Zambia and the Zambia Revenue Authority to resolve matters involving the Kansanshi and Sentinel copper projects. This includes reaching agreement in respect to outstanding value-added tax receivable sums.
The agreements also secured the terms for two new key investments by First Quantum into Zambia. Trident and KMP will continue to own and operate the Sentinel copper mine and will undertake a $1.25 billion expansion project to extend the life of its Kansanshi copper-gold mine. First Quantum will also invest $250 million to develop the Enterprise nickel deposit. Trident and KMP will benefit from various investment protections, foreign currency and import and export rights under the agreements.
First Quantum, a Canadian-based international mining company, is the biggest mining company in Zambia and one of the world's top ten copper producers.
S&C led the negotiations for First Quantum, which involved senior representatives from seven ministries of the Government of Zambia. The S&C team included Stewart Robertson, Sam Saunders, Sarah Mishkin and Stephanie Taylor. John Hardiman, Andrew Finn and Mevelyn Ong advised on arbitration matters. Silvia Brünjes and Maya Nuyts advised on advised on English law matters.