By Helen Reid

CAPE TOWN (Reuters). Anglo American (LON.) agreed to take major control of Arc Minerals Zambia copper/cobalt exploration lices. According to a source who has direct knowledge, this is Anglo’s 20th investment in Zambia.

Anglo would receive a 70% share in Arc Minerals, a London-listed exploration company. This license covers the North-Western Province of Zambia. Anglo has previously explored this area in late 1990s.

Major mining companies are looking for alternative sources of cobalt and battery metals, particularly since Russia’s sanctions and war in Ukraine have caused metal prices to soar.

Anglo American will invest $3.5 million in the joint venture after signing. It can also retain its share by investing $74 million in exploration within 7 years and paying $11 million cash into the JV. According to Reuters, a draft version of the agreement terms was reviewed.

Anglo American refused to discuss the agreement when Reuters contacted them.

A spokesperson for Arc Minerals also refused to comment. He stated that Arc doesn’t comment on speculation.

Arc Minerals used to have an exclusive agreement between Anglo and Arc Minerals from July 2020 through July 2021. Arc Minerals announced that when this expired it would open talks with all major miners that approached it.

Zambia, Africa’s second-largest producer of copper, is becoming a better investment destination for mining firms since last August’s election of President Hakainde Haichilema, who was business friendly, and the subsequent reform to its mining tax.

In the coming decade, China aims to triple its copper production to reach 3,000,000 tonnes per year.