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First Quantum says DRC shipments to Zambia halted

12 December 2007

Source: Reuters News

TORONTO, Dec 12 (Reuters) - First Quantum Minerals said on Wednesday that shipments from two of its mines in the Democratic Republic of Congo, destined for Zambia, had been halted, but added that at least one mine will soon be able to resume shipments.

The Canadian-based copper miner said it had been informed on Nov. 28 that the governor of Katanga province in DRC, had ordered the border closed to the shipment of copper ores and exploration core samples from First Quantum's Lonshi mine.

First Quantum was also advised to not ship copper concentrate from its Frontier mine, it said.

This led to the Frontier concentrate storage shed filling up to capacity, which forced First Quantum to suspend milling operations on Dec. 11.

First Quantum said issues regarding concentrate shipping from Frontier have since been resolved and concentrate shipments should begin shortly. Milling operations should resume a few days later after the concentrate stockpile is reduced.

The restart of Lonshi ore shipments is awaiting final authorization from DRC authorities, the company said.

"Mining operations at both sites have continued unaffected," First Quantum said.

The company said issues surrounding the border closure order had included improving measurement procedures for concentrate movement on the DRC side of the border and "communicating the export procedures already agreed to with the relevant DRC government authorities to the governor's office," the company said.

A First Quantum spokesman did not immediately return calls. The company said in the release it would publish more information when available.

First Quantum shares were down C$1.16 at C$91.54 on the Toronto Stock Exchange shortly after the news was released.