Anglo American Withdraws from Zambian Copper Project

Arc Minerals, a junior mining company, announced on Monday the “mutually agreed termination” of its 2022 joint venture with Anglo American for copper exploration in Zambia where Arc minerals will now assume full control. The move marks the latest in a series of exits by the British mining giant from African projects, following its recent demerger of Valterra Platinum formerly Anglo-American Platinum in South Africa. While the Zambian project’s termination was not directly linked to Anglo American’s broader restructuring strategy, it reflects a continuing shift in the company’s approach to its African operations.

Restructuring Strategy and African Footprint

In 2024, Anglo American outlined a restructuring plan aimed at increasing its exposure to copper. This roadmap included not only the Valterra Platinum demerger but also a pending separation of diamond producer De Beers, which has significant operations in Botswana and Namibia. While the termination of the Zambian project was not explicitly tied to this strategy, it nonetheless contributes to the shrinking of Anglo American’s footprint across the continent.

Details of the ZCP Joint Venture

The joint venture with Arc Minerals focused on Anglo American’s potential acquisition of a stake in the 767-square-kilometer ZCP exploration project in Zambia’s Copperbelt. Under the agreement, Anglo American had the option to acquire a 51% equity interest by investing $38.5 million over three-and-a-half years from the signing of the deal. Arc Minerals noted that the termination followed a “long period of no drilling activity in 2025,” though the reasons behind this inactivity were not disclosed.

Arc Minerals’ Next Steps

With Anglo American stepping back, Arc Minerals has indicated plans to explore alternative pathways to advance the ZCP project, including the possibility of engaging a new joint venture partner. Anglo American has not publicly commented on the termination. After the completion of the De Beers demerger, the company’s African operations will primarily consist of South Africa-based subsidiaries, including Kumba Iron Ore and its manganese operations.

Despite the reduced presence, Anglo American CEO Duncan Wanblad emphasized that Africa remains strategically important. Speaking to Reuters earlier this month, he stated, “I look at what the world needs in terms of minerals, I think Africa is the place to be. Hopefully, we’ll be as big as we were in Africa in a couple of years’ time.”

However, realizing this vision may be challenging given the company’s focus on international consolidation deals. Anglo American is currently pursuing a merger with Canada’s Teck Resources to form “Anglo Teck,” a combined entity valued at over $50 billion and among the world’s top five copper producers. Additionally, the company is advancing plans to merge its Los Bronces and Andina copper mines in Chile with state-owned Codelco, showing a continued emphasis on large-scale projects outside Africa.

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