28th Nov 2007 07:00
First Quantum Minerals Ld28 November 2007 NEWS RELEASE 07-14 November 27, 2007 www.first-quantum.com FIRST QUANTUM MINERALS, SUPPORTED BY PARTNERS, COMMIT TO PROVIDE OR PROCURE FINANCING TOTALING UP TO US $593 MILLION FOR KOLWEZI PROJECT - KMT BOARD APPROVES KOLWEZI PROJECT IMPLEMENTATION- First Quantum Minerals Ltd. ("First Quantum" or the "Company", TSX Symbol "FM",LSE Symbol "FQM") is pleased to announce that the Board of Kingamyambo MusonoiTailings SARL ("KMT") (owned by First Quantum 65%, La Generale Des Carrieres etDes Mines ("Gecamines") 12.5%, Industrial Development Corporation of SouthAfrica ("IDC") 10%, the International Finance Corporation ("IFC") 7.5% and theGovernment of the Democratic Republic of Congo 5% ("RDC") have committed toproceed with the development of the Kolwezi tailings project ("Kolwezi"). FirstQuantum with support from its contributing equity partners of KMT (the IDC, theIFC) will finance or procure third party debt project financing totaling up toUS $593 million. This satisfies the obligations of First Quantum, the IDC andthe IFC under the Contract of Association to complete feasibility studies, carryout an environmental impact assessment, prepare an environmental managementplan, and to obtain commitments with respect to the financing of the Project. Philip Pascall, Chairman & CEO of First Quantum Minerals commented, "The Boardof KMT are prepared to move forward with the construction of a modern "state ofthe art" tailings retreatment facility to produce copper cathode and cobalthydroxide. The Kolwezi project will be an important contributor to the economyof the Katanga province providing employment for the local people, support forlocal businesses as well as a strong tax base for the National and ProvincialGovernments. We look forward to working with our partners Gecamines, the IDC,the IFC and the Government of the Republic of Congo in developing this importantasset." Project Overview The base case for the Kolwezi project with a capital cost of US $553 million isfor a plant capable of treating 2.5 million tonnes per year of tailingsthroughput potentially producing 35,000 tonnes of copper cathode per year withthe corresponding production of 7,000 tonnes of cobalt hydroxide. Tailings willbe recovered utilizing high pressure water monitors and will be pumped to the SX/EW treatment plant. The copper circuit will be based on proven SX/EW copperoperations at Bwana Mkubwa and Kansanshi and the cobalt circuit will be based onknown plant processes similar to those operating at Mopani's Nkana cobalt plant. The project construction completion is targeted for the third quarter of 2009with project commissioning taking place during the fourth quarter of 2009 andcommercial production in the first quarter of 2010. The plant will commenceoperation at 35,000 tonnes per year copper and 7,000 tonnes per year of cobalthydroxide. The plant will be designed and constructed such that the plantcapacity can be doubled at a capital cost of US $40 million. The mine life isexpected to be 22 years at an annual rate of 70,000 tonnes per year. The futuredevelopment of a cobalt metal facility and the expansion of copper and cobaltcapacity will be considered in light of practical experience on site and oncommodity market conditions. Environmental Review and Social Development Plan In 2004/2005, an Environmental Adjustment Plan ("EAP") comprising anEnvironmental Impact Statement and Environmental Management Plan was preparedfor KMT in accordance with the DRC Mining Code and Mining Regulation. The EAP,based on the Adastra project design was submitted to the Ministry of Mines inKinshasa on May 27, 2005 and an approval letter was issued on July 5, 2005.Additional information concerning the composition of the tailings and finaleffluent (not available for inclusion in the EAP) was submitted to the Ministryof Mines on May 19, 2006 and a non-objection letter to the additional elementsof the final report was issued by the Ministry of Mines on May 25, 2006. KMTholds the Exploitation License to develop the Kolwezi tailings project and hasapproved the Environmental Impact Statement. KMT is currently completing a Social Development Plan ("SDP") which is scheduledfor implementation in the first quarter of 2008. The SDP will focus on acomprehensive community mobilization process that will engage stakeholdersidentified in the social baseline studies resulting in the creation of CommunityDevelopment Committees and Village Development Plans in which community membersprioritize their development needs. To make the plan sustainable andintegrated, emphasis will be placed on: (1) the basic needs of communities -potable water, basic primary education and basic health facilities (HIV/AIDS andmalaria programs); (2) income generating activities - agriculture and smallscale business enterprises; (3) infrastructure - roads; (4) capacity building inlocal industry/suppliers, administration and infrastructure; and (5) goodgovernance. On Behalf of the Board of Directors 12g3-2b-82-4461of First Quantum Minerals Ltd. Listed in Standard and Poor's G. Clive NewallPresident For further information visit our web site at www.first-quantum.com North American contact: Geoff Chater 8th Floor, 543 Granville Street, Vancouver, British Columbia, Canada V6C 1X8 Tel: (604) 688-6577 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: [email protected] United Kingdom contact: Clive Newall, President1st Floor, Mill House Mill Bay Lane Horsham West Sussex RH12 1TQ United Kingdom Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: [email protected]. Or Harriet Pask or Sarah MacLeod Hogarth Partnership Ltd. Tel: +44 (0) 20 7357 9477 The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Certain information contained in this news release "forward-looking statements"within the meaning of the Private Securities Litigation Reform Act of 1995 andforward-looking information under applicable Canadian securities legislation.Such forward-looking statements or information, including but not limited tothose with respect to the prices of gold, copper, cobalt and sulphuric acid,estimated future production, estimated costs of future production, the Company'shedging policy and permitting time lines, involve known and unknown risks,uncertainties, and other factors which may cause the actual results, performanceor achievements of the Company to be materially different from any futureresults, performance or achievements expressed or implied by suchforward-looking statements or information. Such factors include, among others,the actual prices of copper, gold, cobalt and sulphuric acid, the factualresults of current exploration, development and mining activities, changes inproject parameters as plans continue to be evaluated, as well as those factorsdisclosed in the Company's documents filed from time to time with the Alberta,British Columbia, and Ontario Securities Commissions, the Autorite des marchesfinanciers in Quebec, the United States Securities and Exchange Commission andthe London Stock Exchange. ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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