First Quantum Minerals is suing units of Eurasian Natural Resources Corp which bought rights to Kolwezi, a disputed copper project, after Democratic Republic of Congo withdrew First Quantum’s licence.
First Quantum will also inititate international arbitration proceedings shortly over Frontier, a second project in the DRC, as the miner fights for the return of assets in the country, the group’s president, Clive Newall said.
The miner suspended operations at Frontier last month after being stripped of its exploration permit, a move it said was retribution for entering into arbitration over Kolwezi.
A spokeswoman for FTSE 100 miner ENRC reiterated comments made last week that the miner would vigorously defend any legal action. Newall said the amount of compensation First Quantum was seeking over Kolwezi would emerge during the proceedings. “We are claiming for essentially the fair value of the project which will be in the billions, but just how much depends on prevailing metal prices,” he said.
City A.M. Reporter