Anglo American exits Zambia copper JV as Arc Minerals regains control

Anglo American

Anglo American exits Zambia copper JV with Arc Minerals, underscoring how majors are retreating from early-stage African exploration risk. The joint venture’s termination ends Anglo’s first fresh Zambia investment in nearly two decades, despite a strong copper price backdrop and growing electrification demand. As a result, Arc Minerals now regains full control of the Zambian copper and cobalt licences, but faces a tougher path to funding and project de-risking.

Why Anglo American exits Zambia copper JV signals shifting exploration priorities

Anglo American exits Zambia copper JV just three years after launching the partnership with Arc’s Unico Minerals subsidiary. The JV never progressed to drilling, reflecting how majors increasingly prioritise brownfield expansions and near-term developments over greenfield frontier plays. Meanwhile, around $800,000 will remain in Handa Resources, the JV vehicle, to support ongoing work as Arc reassesses its plans.

The move highlights structural barriers in advancing African exploration, including complex permitting, high logistics costs and investors’ limited risk appetite. This caution persists even as London Metal Exchange copper prices hover near $10,600/t, supported by supply disruptions and grid-driven demand. Therefore, the Anglo American exits Zambia copper JV decision shows that price strength alone cannot offset perceived execution and jurisdiction risks.

Arc Minerals strategy after Anglo American exits Zambia copper JV

Arc Minerals now holds 100pc of the exploration licences and must redefine its strategy without a global major’s backing. The company has signalled it will explore new strategic options, including bringing in another partner to share risk and capital. However, the market reaction was immediate, with Arc’s share price plunging by nearly 50pc on the London Stock Exchange.

Arc insists it remains adequately funded, combining existing cash with remaining JV funds, and does not need a fresh equity raise now. Even so, any future drilling, resource definition and potential development will require deeper pockets or a new strategic investor. For juniors across Africa, this episode underscores how quickly corporate priorities can shift, even in a copper market driven by electrification narratives.

The Metalnomist Commentary

The fact that Anglo American exits Zambia copper JV at a time of tight copper supply underlines how capital discipline now dominates boardrooms. African copper exploration remains strategically attractive, but only where permitting clarity, infrastructure and political stability visibly de-risk the story. Expect stronger competition among juniors to secure partnerships with majors that increasingly cherry-pick only the lowest-risk copper growth options.