STORY: Arc Minerals said on Thursday (May 12) that Anglo American will take majority control of its Zambia copper-cobalt exploration licenses.
It marks the first new investment by Anglo in Zambia for 20 years.
Under the deal, Anglo will take 70% of a joint venture with Arc that will own licenses to explore Zambia’s copper-rich north-western province.
It is an area Anglo previously explored in the late 1990s.
Anglo American will pay $3.5 million into the joint venture upon signing.
It will be able to retain its stake by spending $74 million on exploration within seven years of signing and making cash payments of $11 million into the JV, according to terms of the deal.m
Major mining firms are searching for new sources for battery metals copper and cobalt, especially in the wake of war in Ukraine and Russian sanctions, which have sent metal prices soaring.
Zambia is Africa’s second-largest copper producer.
It aims to more than triple its annual copper output within the next decade to 3 million tonnes a year.