First Quantum Loses Mine Rights to Fortune

6 September 2010 (Last Updated September 6th, 2010 18:30)

Mining rights for two mines previously operated by First Quantum Minerals have been awarded to Hong Kong-based company Fortune, according to the Congolese Government. Fortune is a joint venture with a state-owned Congolese mining company. First Quantum president Clive Newall said

Mining rights for two mines previously operated by First Quantum Minerals have been awarded to Hong Kong-based company Fortune, according to the Congolese Government.

Fortune is a joint venture with a state-owned Congolese mining company.

First Quantum president Clive Newall said the company is considering taking further legal action against the government and Fortune over losing the rights to the Frontier and Lonshi mines.

Newall said the financial impact of losing the licences at Kolwezi and Frontier is more than $2.5 bn.

First Quantum has lost its $750m Kolwezi project to Eurasian Natural Resources and is seeking compensation of more than $1bn to cover financial losses.