(in
“First Quantum has been working constructively with the Government of Zambia’s New Dawn administration as part of their efforts to reform the mining sector, attract investment and increase Zambia’s copper production. The approval of the projects reflects First Quantum’s increased confidence in the investment climate in Zambia,” commented
Work on both projects will start immediately. The Company is re-commencing detailed engineering works for the S3 Expansion to determine purchase orders for key long-lead items, including the SAG mill, ball mill and in-pit crushing station. A mining contractor will be mobilized for the Enterprise nickel project in order to commence pre-stripping of the pit in
ZAMBIAN INVESTMENT CLIMATE
The approval of the projects follows the efforts of the New Dawn administration to enhance both the investment climate for mining and to seek commitments from the mining sector to contribute to the national economy and to corporate social responsibility. These initiatives will help establish a platform for more stable, durable and responsible mining in
The Government of Zambia’s (the “Government”) commitments address the ease of doing business in
The approvals follow the re-introduction of the deductibility of mineral royalties for corporate income tax assessment purposes that became effective
Furthermore, First Quantum and the Government have successfully resolved all points of contention that have been stumbling blocks to progress on the S3 Expansion and Enterprise nickel project. This includes reaching agreement in respect to the outstanding value-added tax receivable sum and an approach for repayment based on offsets against future mining taxes and royalties.
S3 EXPANSION
The S3 Expansion is expected to transition the current selective high-grade, medium-scale operation to a medium-grade, larger-scale mining operation that will be more appropriate for the higher proportion of primary, lower-grade sulphide ores at depth. As outlined in the NI 43-101 Technical Report filed in
A significant portion of the initial construction works for the S3 Expansion have been previously undertaken with much of the civil and structural work onsite completed. The remaining work includes completion of the remaining engineering design works, procurement and installation of equipment, electrics, controls and infrastructure. The S3 processing train will comprise of a 28-megawatt SAG mill and a 22-megawatt ball mill. The open pit mine will be expanded to increase the supply of sulphide ore from the
In parallel with the expansion of the mine and processing facilities, the Company plans to increase the throughput capacity of the
The total capital expenditures associated with the S3 Expansion is expected to be
ENTERPRISE NICKEL PROJECT
The Enterprise nickel sulphide deposit is located 12 kilometers northwest of the Sentinel copper mine. As outlined in the NI 43-101 Technical Report filed in
The Enterprise nickel project will consist of a single, main open pit and one extension to the southwest. It will utilize the existing 4 Mtpa nickel circuit that was previously built as part of the original Sentinel processing complex. The main workstream to bring the project online will be the pre-strip of waste. The development timeline for Enterprise is expected to be approximately twelve months. At full production, Enterprise is expected to produce an average of 30 Ktpa of nickel in high-grade concentrate.
The total capital expenditures associated with the Enterprise nickel project is expected to be approximately
RESPONSIBLE MINING
The S3 Expansion and the Enterprise nickel project underlines First Quantum’s continued standing as the largest private sector employer and the largest contributor to corporate social responsibility in the mining sector in
For further information, visit our website at www.first-quantum.com or contact:
Bonita To, Director, Investor Relations
(416) 361-6400 Toll-free: 1 (888) 688-6577
E-Mail: info@fqml.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The forward-looking statements include estimates, forecasts and statements as to: the expected timing of completion of the S3 Expansion, the Enterprise nickel project; expected production, processing and sales volumes; the completion of engineering design works; procurement and installation of equipment, electricals, controls and infrastructure; and the anticipated amount and timing of capital expenditures associated with the S3 Expansion and the Enterprise nickel project. The forward-looking information and statements herein are subject to the impact of ore grades on future production, the successful and timely completion of the S3 Expansion and the Enterprise nickel project; construction, production, operational, labour or marketing disruptions as a result of the COVID-19 global pandemic or otherwise; capital expenditure and mine production costs; the outcome of mine permitting and other required permitting; the outcome of legal proceedings which involve the Company; information with respect to the future price of copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and sulphuric acid; estimated mineral reserves and mineral resources; First Quantum’s exploration and development program; estimated future expenses, exploration and development capital requirements; the Company’s hedging policy, and goals and strategies; plans, targets and commitments regarding climate change-related physical and transition risks and opportunities (including intended actions to address such risks and opportunities); greenhouse gas emissions, energy efficiency and sources of power and carbon intensity; the use of renewable energy sources; the design, development and operation of the Company’s projects and future reporting regarding climate change and environmental matters; the Company’s expectations regarding increased demand for copper and nickel; the Company’s project pipeline and development and growth plans. Often, but not always, forward-looking statements or information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about continuing production at all operating facilities, the price of copper, gold, nickel, silver, iron, cobalt, pyrite, zinc and sulphuric acid, anticipated costs and expenditures (including capital expenditures required for completion of the S3 Expansion and the expansion of the
See the Company’s Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements or information, there may be other factors that cause actual results, performances, achievements or events not as anticipated, estimated or intended. Also, many of these factors are beyond First Quantum’s control. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements made and information contained herein are qualified by this cautionary statement.
Source:
2022 GlobeNewswire, Inc., source