First Quantum Minerals (TSX:FM) Ltd announced on Monday an agreement with a Zambian mining company to fast-track the development of a copper project in the southern African country.
Zambia's Mimosa Resources is targeting mining operations at the Fishtie copper project to begin in 2026, increasing to a maximum production of 30,000 metric tonnes of copper a year by the end of the decade, the two companies said in a joint statement.
Mimosa Resources is expected to lead the raising of a total investment of $200 million for the project, Reuters reported.
Zambia, Africa’s second-largest copper producer, has its sights set on tripling copper output and has reviewed its tax policy to increase exploration and mining activities, the media outlet noted.
First Quantum said its flagship Kansanshi copper-gold mine in Zambia produces more copper than any other mine in Africa.
The company also owns the Sentinel open-pit copper mine and Enterprise nickel project in Zambia.
First Quantum noted it thought the investment climate in Zambia had improved.
Shares of First Quantum eased nearly 2% to C$10.98 in early trading on Monday and have fallen 61% year to date.
Contact Sean at sean@proactiveinvestors.com