Arc Minerals and Anglo American Forge Ahead with Promising Copper JV in Zambia
Arc Minerals, a base metals exploration and development company, has confirmed that its copper joint venture (JV) with Anglo American in Zambia is on track.
Despite Anglo’s recent rejection of an all-share takeover bid from BHP, the company remains focused on copper, a key element in its new strategic direction.
“It’s all about copper, and that’s the number one priority for Anglo and other major companies exposed to base metals,” said Nick von Schirnding, Arc Minerals’ director and executive chairman, in a recent interview. He described the JV project in Zambia’s Copperbelt as “the most exciting copper tenement in the world, certainly in Africa.”
The $90 million project, located in the Dome region of the Zambian Copperbelt, is fully funded, with $75 million allocated for on-ground exploration.
Drilling, which began last year, is set to resume in June after being halted by seasonal rains. Initial drilling reached depths of 950 meters, revealing not only copper but also nickel mineralization.
The upcoming drilling campaign, which is expected to continue until late November or early December, depending on weather conditions, will provide further insights.
Arc’s tenements, covering 870 km², are situated near significant copper mines like First Quantum Minerals’ Sentinel and Kansanshi mines, as well as Barrick’s Lumwana mine.
Zambia’s history with copper mining dates back nearly a century. However, exploration and investment were hampered after the Zambian government nationalized the industry, including Anglo’s assets, in 1969.
The re-privatization that followed saw the industry go through several turbulent phases under different administrations, some less favorable to investors.
President Hakainde Hichilema, who took office in 2021, has made significant efforts to attract investment and create a more favorable environment for mining, which is crucial to Zambia’s economy.
“The new administration has made impressive strides in turning things around,” von Schirnding said, noting the government’s commitment to tackling corruption and improving infrastructure.
The Dome region benefits from relatively good infrastructure, including access to water and power. While the road network is mixed, Arc has graded roads in the area, and the government has committed to further infrastructure development in the region.
Looking ahead, questions remain about funding as the project moves beyond exploration and development. Concerns about Anglo’s financial capacity to bring its copper assets to fruition have been raised, particularly as the company shifts its focus towards copper, partly funded by the planned sale of its steel-making coal assets in Australia and its stake in diamond giant De Beers.
Von Schirnding, who has a long history with Anglo, remains optimistic about the JV’s prospects. He described the deal with Anglo as “the best exploration earn-in ever drafted.”
However, despite the initial excitement, investor interest has waned, with Arc Minerals’ share price halving since the announcement.
“The excitement starts now,” von Schirnding said in a recent call to investors, expressing confidence in the JV’s future.
SOURCE:miningmx.com
