London—Global law firm Dentons advised First Quantum Minerals (FQM) on the drafting and negotiation of a joint venture agreement with mining developer Mimosa Resources (Mimosa) for the development of a copper mine in Mkushi, Zambia (the Fishtie project).  Under a related Development Agreement, mining is envisaged to commence as early as 2026, ramping up to maximum production of 30 000 tonnes of copper a year by the end of this decade, including the raising of US$200 million.

FQM and Mimosa first announced an agreement to develop the Fishtie copper project in Central Province in 2012. Since then, technical work has been undertaken, demonstrating the deposit is economically viable, with some initial infrastructure now in place. The Agreement signed, provides Zambian-led Mimosa with access to FQM’s international mining skills and expertise to take the Fishtie project to the next stage of development.

The establishment of technical and exploration working groups comprising of teams from both FQM and Mimosa should ensure the transfer of skills and technical knowledge throughout the lifetime of the Agreement. This should support Mimosa, as a Zambian ‘home-grown entity’, to successfully develop and run a world-class, modern mining operation.

FQM is engaged in the production of copper, nickel, gold and silver, and related activities including exploration and development. It has mines located in Zambia, Panamá, Turkey, Australia and Mauritania. The company is listed on the Toronto Stock Exchange.

Humphrey Douglas, a UK Partner in Dentons’ Energy, Transportation and Infrastructure (ETI) team led the team advising FQM on this deal. Humphrey was supported by a number of lawyers from Dentons’ ETI and Corporate teams in the UK, including Senior Associate Olympe Bory, Counsel Paul Flynn, Associate Bethan McGarva and Trainees Adjoa Kwakwa and Shanie Earl.