FQM Implements Leadership Changes to Address Challenges in Zambian’s Operations
First Quantum Minerals Ltd (FQM) is undergoing a significant restructuring of its top-tier personnel at its Zambian operations to address production and safety issues, according to an internal memo obtained by Reuters.
The company’s decision comes amid ongoing challenges, including the recent closure order of its flagship Panama mine, which has led to a significant decline in market value since public protests against the Cobre Panama project began in October.
In an email sent by chief operating officer Rudi Badenhorst to Kansanshi mine employees, it was acknowledged that the Zambian operations had fallen short of expectations in terms of safety and production over the past two years.
The memo emphasized the need to reaffirm commitments to investments in Zambia, particularly in light of the impact of the suspension of operations at Cobre Panama.
As part of the restructuring, Meiring Burger has been appointed as the general manager of Kansanshi mine, while Axel Kottgen has been promoted to assistant general manager.
Anthony Mukutuma will lead external relations in Zambia to focus on government and political strategy.
While First Quantum has not responded to Reuters’ request for comment, the company has faced challenges beyond Zambia, notably the closure of its Panama mine, which accounted for a significant portion of its revenues.
Despite these challenges, FQM has reiterated its commitment to planned investments in Zambia, even as production guidance is adjusted.
The company’s Zambian mines, Sentinel and Kansanshi, generated substantial revenue in the previous quarter, but incidents such as the deaths of two contract workers underscore ongoing safety concerns.
Copper production in Zambia declined in 2023 due to various factors, including lower throughput and grades. Additionally, First Quantum has announced plans to explore the sale of smaller mines and stakes in larger assets.
However, Fitch ratings agency has cautioned that the permanent closure of the Panama mine could impact the company’s borrowing capacity, signaling ongoing challenges for First Quantum Minerals in navigating its operations and financial outlook.
SOURCE:mining.com
