unearthing potential

Zambia-FQM: Swapping dividend rights for royalties fuels mining optimism

By Chiwoyu Sinyangwe

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Posted on April 17, 2023 15:51

FILE PHOTO: Refined copper bundles can be seen at BHP Billiton’s Olympic Dam copper and uranium mine located in South Australia © FILE PHOTO: Refined copper bundles can be seen at BHP Billiton’s Olympic Dam copper and uranium mine located in South Australia, May 24, 2016. REUTERS/Sonali Paul//File Photo – RC2680AGRUWD — FILE PHOTO: Refined copper bundles can be seen at BHP Billiton’s Olympic Dam copper and uranium mine located in South Australia, May 24, 2016. REUTERS/Sonali Paul//File Photo – RC2680AGRUWD

Zambia’s agreement with global miner First Quantum Minerals (FQM) saw the cash-strapped Southern African nation opt for revenue-sharing in the jointly-owned Kansanshi Mine. The move will shore up its liquidity and also end a long-standing dispute.

ZCCM-IH, Zambia’s holding company that holds stakes in privately-owned large-scale copper mines, says it has agreed to convert its dividend rights in Kansanshi Mine – majority-owned by First Quantum Minerals (FQM) – to a 3.1% revenue royalty. The move is expected to end a years-long dispute with the Vancouver-based mining giant. In the new payment system, royalties are paid on a quarterly basis for 23 years.

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