First Quantum - ENRC’s Kolwezi deal contravenes ICC orders

Production and Markets

First Quantum Minerals Ltd says Friday’s announcement by Eurasian Natural Resources Ltd (ENRC), that it was buying indirect control of the disputed Kolwezi tailings project, contradicts orders issued by the International Chamber of Commerce in Paris (ICC).

The ICC orders, issued on Thursday (the day before ENRC’s announcement), prohibited the government of the Democratic Republic of Congo, and its mining arm Gecamines, from transferring, or allowing the transfer of the assets.

“The Tribunal's orders are to remain in place until such time as the Tribunal has made a decision on the claimants' request for interim measures,” said First Quantum in a statement.

The project is held by Kingamyambo Musonoi Tailings (KMT), 65% owned by First Quantum, and its joint-venture partners Industrial Development Corp and International Finance Corp.

Collectively, they own 82.5% of the joint venture, while state-owned Gecamines and the DRC State owns the remaining 17.5%. Kolwezi was closed by the DRC government after a contractual dispute in September last year.

On Friday, ENRC announced the purchase of a 50.5% interest in Camrose Resources Ltd for US$175 million. Camrose’s interests include entire share capital of Highwind Group, which in turn owns a 70% interest in the copper-cobalt tailings licence at Kolwezi.

“These announcements appear to indicate a clear contradiction of the Tribunal's orders,” said First Quantum, adding that ENRC had not been in contact about the status of the arbitration or its legal and contractual rights to the project.