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First Quantum Minerals (FQM) and Mimosa Resources (Mimosa) have reportedly signed a revised Kashime Development Agreement, which is a joint commitment to fast-track the development of their Fishtie copper project in Mkushi.
According to Mining Weekly, as seen by Zambia Monitor on Wednesday, under the agreement, mining was projected to start in 2026.
This would entail ramping copper production to a maximum production of 30, 000 tonnes per year the end of the decade.
FQM and Mimosa first announced an agreement to develop the Fishtie copper project in Central province in 2012.
Since then, substantial technical work had been undertaken demonstrating the deposit was economically viable, with some large initial infrastructure now in place.
The agreement signed was said to have provided Mimosa with access to FQM’s array of skills and expertise to take the Fishtie project to the next stage of development.
“Mimosa will also lead the fundraising initiatives to raise the US$200 million required for the development of the project.”
In particular, the parties said the agreement helps to develop Mimosa, as a Zambian ‘home-grown entity’, to a world-class, modern mining operator.
Mimosa currently owns 37.5 percent of Kashime Copper, which holds the Fishtie project.
Read more: FQM begins nickel concentrate production, set to become Africa’s largest producer
The development agreement would see Mimosa’s stake grow into a majority 75 percent share through its completion of a feasibility study and the raising of the necessary financing to take the project to technical completion.
FQM indicated that it was determined to develop the copper resource now that the investment climate in Zambia had improved.
“We have committed a deep level of organisational support to Mimosa, so that they are able to successfully develop and run Fishtie and in so doing, provide inspiration to other emerging Zambian miners,” FQM stated.
FQM country manager, Godwin Beene, added that Mimosa had some very clear commercial objectives that they must meet and within a timeframe that kept the project on track.
“We look forward to working closely together in the months and years to come.This revised development agreement represents a potentially significant transfer of skills and know-how from a major mining multinational to an emerging Zambian company,” Beene said.
Mimosa chairperson, Jordan Soko, also stated that: “In the search for a genuine ‘social licence to operate’, we believe that Zambians need to play a leading role in the country’s future mining development.”
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