HomeBase MetalsFQM will not downgrade African projects

FQM will not downgrade African projects

Clive Newall,
First Quantum
London, England — MININGREVIEW.COM — 17 October 2008 – Canadian-listed First Quantum Minerals Limited (FQM) – an emerging mining and mineral company and one of the faster growing copper producers in Africa –has no plans to cut production or slow any projects in the Democratic Republic of Congo (DRC), Zambia or Mauritania.

Reuters reports that the shares of small mining companies have been hit hard by the turmoil in global financial markets, with several firms running short of cash and unable to raise funds, while some have delayed projects due to tight financing conditions.

But First Quantum president Clive Newall told Reuters in an interview that his company was not facing similar problems. The company had an increased focus on the cost side of operations, and its low cost base had helped it weather the current financial market storm.

“We do not have high-cost mines, so we can afford to continue with our current business model,” Newall said, adding that the company would review the situation at regular intervals.

“If we had mines which were very high cost we would obviously be taking a very defensive stance, because there’s more downside risk than upside in the short/medium term, but the company is not immune to the slowdown in the global economy,” he continued.

“It is the new projects which are the key,” he continued, adding they required a higher incentive price which, if not achieved, could lead to a supply shortage in the longer term.