FQM is majority US-owned, confirms envoy

US Ambassador to Zambia Eric Schultz tours FQM’s Kansanshi mine.

The Nation’s largest copper miner, First Quantum Minerals Limited (FQM), is majority owned by US shareholders, the US Ambassador to Zambia Eric Schultz has confirmed.

Schultz visited First Quantum Minerals’ Kansanshi Mine this week to tour the facility and meet with mine officials as part of his America Days visit to Ndola and Solwezi, accompanied by Minister of Mines Hon. Christopher Yaluma.

“As a majority US-owned company, First Quantum’s work in Zambia yields benefits for both of our countries,” said Ambassador Schultz.  “Given its significant ties to the United States, I’m very interested in learning more about First Quantum’s work in Zambia. As it is our mandate to support the work of companies with significant American involvement or interest, I am committed to working with both First Quantum and the Zambian government to ensure that all parties can arrive at mutually beneficial positions on key policy issues, such as electricity tariffs, taxes, and VAT refunds.”

During his trip to Kansanshi, Ambassador Schultz viewed the facility’s main mining pits and received a tour of First Quantum’s smelter.

“One other thing that I learnt today that is particularly interesting to me is that this particular mine produces around 250,000 metric tonnes of copper per year, which is a third of the country’s production, so if you add in Sentinel as well then clearly FQM is key to the current economy of Zambia. Part of the reason I am here touring the facility is that FQM is more than 50 per cent owned by American stakeholders. So, we the United States, have a direct vested interest in in the success of FQM and of its operations here,” he explained.

Ambassador Schultz noted that mining is central to Zambia’s economy as it provides jobs, taxes, as well as 75 per cent of the country’s export revenues.

“This is a truly impressive facility,” said Schultz, adding: “Mining is a critical component of the Zambian economy and Kansanshi has brought thousands of jobs to Solwezi as the town grew up around this important mine.  I’m hopeful that, through additional investment into Kansanshi, First Quantum can provide even more jobs to the local economy and bring additional years to the mine’s life cycle.”

In welcoming the ambassador to Kansanshi, FQM Country Manager Gen. Kingsley Chinkuli said: “First Quantum is a truly global company, with operations in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru. FQM’s proven track record has enabled us to bring together the considerable sums of capital and industry expertise needed to help Zambia unlock its natural resource base in a way that is beneficial to the country and investors. The capital raised from US investors, and those elsewhere, has enabled us to do that, while always being mindful that our heart is in Zambia, where we began.”

FQM started its life in Zambia in 1996, with the acquisition of the Bwana Mukuba mineralised waste dumps on the Copperbelt. Its two current mines in Zambia – Kansanshi in Solwezi and the Sentinel in Kalumbila – account for 60 percent of the group’s revenue and 70 percent of profit.

First Quantum Minerals is listed on the Lusaka and Toronto stock exchanges. Latest records show that US investors own more than 50 percent of FQM shares, with Capital Group companies owning the single largest shareholding with a 10.28 percent stake, followed by US-based SailingStone Capital Partners, which owns just over 9 percent.
The company also has shareholders from the UK, Canada, Singapore and elsewhere across the globe.

First Quantum has invested in excess of US$5.7 billion in its Sentinel and Kansanshi Mines and the Kansanshi Smelter, and has paid more than US$3.3 billion in taxes in the last eleven years, transforming the economy of North-Western Province and creating employment for more than 8,500 people.