Shares in Eurasian Natural Resources Corporation (ENRC) leapt on news it has settled a dispute with Canadian mining firm First Quantum over assets in the Democratic Republic of Congo.
The two disgruntled companies have reached an agreement under which ENRC will pay First Quantum £1.25bn for the majority of its assets in the DRC. ENRC will also be required to pay for the legal costs.
The dispute, which erupted last year, was expected to go to trial, so the news comes as a welcome relief to investors.
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The trouble occured when ENRC purchased rights to certain assets in the DRC, which included the Kolwezi copper project. First Quantum had owned 65% of the project, but claimed its rights were removed by the government of the DRC.
First Quantum consequently filed a $2bn claim against ENRC, which the court upheld.
ENRC shares rose 4.14% to 692p by 14:07PM.
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