First Quantum Minerals is implementing a significant management reshuffle at its Zambian operations, following two years of performance that did not meet company expectations in terms of safety and production. Chief Operating Officer Rudi Badenhorst communicated these changes in an email to the employees of the Kansanshi mine, highlighting the need to reinforce commitments to deliver on investments in Zambia, especially in the wake of operational suspensions at Cobre Panama late last year.
Meiring Burger, previously part of First Quantum’s group mining team, has been promoted to General Manager of the Kansanshi mine. Axel Kottgen, who was leading the Enterprise nickel project in Zambia, will now serve as Assistant General Manager at Kansanshi to help achieve the mine's target outcomes. Additionally, Anthony Mukutuma has been appointed to spearhead external relations in Zambia, focusing on government and political strategy.
The restructuring comes after a challenging period for First Quantum, particularly due to the Panamanian government's request to shut down one of the world's largest copper mines last November—a significant hit as the mine contributed to 40% of the company’s revenues. Despite these hurdles, First Quantum remains committed to its planned investments in Zambia, even as it adjusts production guidance.
For the quarter ending September 2023, the company's Zambian mines, Sentinel and Kansanshi, reported $943 million in revenue and an operating profit of $210 million. However, 2023 saw a 10% decrease in total copper production in Zambia compared to 2022, attributed to lower throughput and grades at Kansanshi. The year also witnessed the tragic deaths of two contract workers in separate incidents at the Zambian mines.
Amid these challenges, First Quantum is exploring the sale of smaller mines and stakes in its larger assets as part of its strategic adjustments. Fitch Ratings has expressed concerns that a permanent closure of the Panama mine could significantly impact the company’s borrowing capacity, underscoring the importance of these management changes as First Quantum navigates through this pivotal period.
