Canadian miner sells Congo operations

First Quantum strikes deal with Eurasian Natural Resources

VANCOUVER— Vancouver miner First Quantum Minerals Ltd. is selling its mines in Congo and settling legal claims for $1.25 billion (U.S.) after its operations were nationalized by the government of the central African country.

The company said Thursday it had struck a deal to sell its mines and assets to Eurasian Natural Resources Corp. PLC — including the Kolwezi tailings project, as well as the Frontier and Lonshi mines and related exploration interests.

All the properties are located in the Democratic Republic of Congo, a mineral rich country in central Africa.

The Congo government nationalized one of its largest copper mines last year and said it would investigate the mine’s owner First Quantum for what it called “suspected wide-scale misconduct.”

First Quantum shut down the Frontier mine — its only producing mine in Congo — after a government order. The move came after a Congo supreme court ruling that granted prospecting rights over Frontier — but not explicit mining rights — to Congo state owned miner Sodimico last spring.

First Quantum opposed the expropriation and took the legal dispute to arbitration through an international court in Paris.

Thursday’s deal is slated to close Feb. 29 and means First Quantum will have no operations left in the Congo. The companies and the Congo government are also settling legal claims between them.

Philip Pascall, chairman and CEO of First Quantum, said the company is “satisfied that we have reached this agreement.”

“It brings to a close First Quantum’s current involvement in the DRC and secures substantial compensation for our shareholders for the loss they have suffered.”

First Quantum currently produces copper, gold and sulphuric acid from operations in South America, Europe, Africa and Australia.