Nick Von Schirnding

IT’S not quite back to the drawing board, but Nick von Schirnding will be assessing his options after a three-year joint venture with Anglo American fell apart in November. Arc and Anglo mutually ended the Handa Resources JV which was exploring the Domes copper project in Zambia’s northwest. The truth is there had been minimal drilling of late, most likely a consequence of Anglo’s redirected focus on its restructuring and the ‘merger of equals’ with Teck Resources. Von Schirnding, most likely disappointed privately, struck an upbeat note.

Copper remains an in-demand metal and the Domes resource is one of the best undeveloped copper resources globally. True enough. Arc is unlikely to struggle for another joint venture partner if that’s the direction Von Schirnding wants to take. But there is unwanted noise behind the scenes that Von Schirnding could do well without. This is related to former non-executive and former shareholder Mumena Mushinge who has been involved in attempts to disrupt exploration activities. These include claiming ownership rights over part of an Arc exploration property in Zambia. In November, the High Court of Zambia set aside a previous order to award the property to Lunda Resources, a joint venture with Mushinge’s Terra Metals.

In the meantime, the work of exploration continues. Anglo left behind $800,000 in Handa, removing the need for Arc to seek equity finance in the short term. There are plenty of examples of juniors succeeding post a major leaving a project, such as Midnight Sun, listed in Canada and also operating in the Domes region of Zambia, which has gone to multi-year highs since the departure of its partner, Rio Tinto. So, everything to play for!