Wedoany.com Report-Oct. 21, Anglo American (LON: AAL) and junior partner Arc Minerals (LON: ARCMA) have mutually agreed to end their copper and cobalt exploration joint venture in Zambia, marking the conclusion of Anglo’s first new investment in the country in nearly 20 years.

Kalaba copper-cobalt mine in Zambia.

The partnership, launched in 2022, experienced no drilling activity in its first year and subsequently stalled. Under the separation terms, approximately $800,000 will remain in the account of Handa Resources, the company holding Anglo’s interests. Anglo will relinquish its shares, and Arc Minerals will regain full control of the project.

Following the announcement, Arc Minerals shares fell sharply, dropping as much as 55% in early London trading before settling 48% lower at 0.55p. The stock has declined 58% in 2025, with a market capitalization of £8 million ($11 million).

Arc Minerals executive chairperson Nick von Schirnding said: “While we are sorry to part company with Anglo American, I am pleased that we revert to a controlling position in what is widely regarded as one of the most prospective copper tenements in Africa with only a fraction having been drilled to date. We will explore our options for these assets, which may include a new JV partner.”

Von Schirnding also addressed ongoing legal issues in Zambia, accusing an unnamed individual of attempting to “hold the company to ransom” and reaffirming Arc’s commitment to resolving the matter through the courts.

Despite the setback, Arc Minerals stated that with its current cash reserves and funds remaining in Handa, it does not expect to raise new equity in the near term to sustain operations.

The dissolution of the joint venture allows Arc Minerals to regain strategic control over the Zambian tenements, which remain largely undeveloped and hold potential for copper and cobalt exploration. The company plans to assess future options for the project, including the possibility of partnering with a new joint venture collaborator to advance exploration activities.

This development concludes nearly two decades of Anglo American’s initial investment in Zambia and highlights the challenges and opportunities in the country’s mining sector. Arc Minerals’ regained control positions it to manage and develop the assets independently, while maintaining operational stability with its existing financial resources.