HomeBase MetalsFirst Quantum to pay DRC US$6 million damages

First Quantum to pay DRC US$6 million damages

Stacked sheets of
copper newly produced
by First Quantum
in the DRC
 
Kinshasa, DRC — MININGREVIEW,COM — 02 November 2009 – First Quantum Minerals Limited “’ the Canadian-based mining company that had a US$553 million (R4.4 billion) copper project cancelled by the government of the Democratic Republic of Congo (DRC) in August “’ has been ordered to pay the DRC government US$6 million (R48 million) in damages over three failed lawsuits it filed against the government and state agencies.

The company’s Kingamyambo Musonoi Tailings (KMT) copper and cobalt project was cancelled as part of a government review of 61 mining deals. On 26 August and 3 September KMT and Congo Minerals Development (CMD) “’ a wholly-owned subsidiary of First Quantum “’ filed three suits against the DRC government, state miner Gecamines and the mining regulatory agency, CAMI, in the country’s highest civil court.

In the decision “’ which was seen by Reuters in Kinshasa “’ the court upheld the government’s cancellation of the project and ordered KMT and CMD to pay damages for filing the cases.

“In consequence, the court orders each of the plaintiffs to pay the defendants the equivalent of US$3 million (R24 million) in damages and interest,” the decision sent to DRC President Joseph Kabila and Prime Minister Adolphe Muzito, read.

KMT and CMD must also pay court costs, the decision added.

Contacted by Reuters about the ruling, First Quantum president Clive Newall declined to comment, but confirmed that the company would release a statement on the matter.

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