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First Quantum Down 6% After Commercial Court Sends Fight over Kolwezi Project to Trial

First Quantum Minerals Ltd (FM.TO) is down 8% this morning with another fall in base metal prices today, and sliding despite a commercial court in the British Virgin Islands siding with the diversified miner by sending to trial its bid to either recover it majority stake in the now-idled Kolwezi tailings project in the Democratic Republic of the Congo or receive up to $2 billion damages.

The plant was intended to produce about 35,000 tons per year of copper cathode and another 7,000 tons of cobalt hydroxide but work was halted in September 2009 by federal authorites who sought to toss First Quantum for a state-owned mining company and local subsidiaries of Eurasian Natural Resources Corp.

Those entities had filed counter-motions in the DRC courts seeking to have First Quantum's claims dismissed but the British Virgin Islands Commercial Court, following two days of hearing in July, ruled against Eurasian and ordered the case to trial. In addition to legal proceedings now advancing in the British Virgin Islands, First Quantum also is continuing to advance its rights against the DRC through the ICC international arbitration.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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