VANCOUVER — Vancouver miner First Quantum Minerals Ltd. is selling its mines in Congo and settling legal claims for $1.25-billion (U.S.) after its operations were nationalized by the government of the central African country.

The company said Thursday it had struck a deal with sell its mines and assets to Eurasian Natural Resources Corp. PLC – including the Kolwezi tailings project, and the Frontier and Lonshi mines and related exploration interests.

All the properties are located in the Democratic Republic of Congo, a mineral rich country in central Africa. The Congo government nationalized one of its largest copper mines last year and said it would investigate the mine’s owner First Quantum for what it called “suspected wide-scale misconduct”.

First Quantum shut down the Frontier mine – its only producing mine in Congo – after a government order. The move came after a Congo supreme court ruling that granted prospecting rights over Frontier – but not explicit mining rights – to Congo state owned miner Sodimico last spring.

First Quantum opposed the expropriation and took the legal dispute to arbitration through an international court in Paris.

Thursday’s deal is slated to close Feb. 29 and means First Quantum will have no operations left in the Congo.

The companies as well as the Congo government are also settling legal claims between them.

Philip Pascall, chairman and CEO of First Quantum, said the company is “satisfied that we have reached this agreement.”

“It brings to a close First Quantum’s current involvement in the DRC and secures substantial compensation for our shareholders for the loss they have suffered.”

Earlier this week, First Quantum said production at its Kansanshi copper-gold mine in Zambia has stopped due to a labour dispute.

The company said the dispute in the copper-rich southern African nation started on Tuesday.

First Quantum currently produces copper, gold and sulphuric acid from operations in South America, Europe, Africa and Australia.

First Quantum and the World Bank spent US$750-million to develop the Kolwezi copper project.

But the government seized the site in 2009, citing contract violations, and in early 2010 sold the asset to a company controlled by Dan Gertler, the Israeli entrepreneur.

Mr. Gertler later sold Kolwezi and other Congo mining assets to Eurasian Natural Resources, the Kazakh miner.

First Quantum said Thursday the price tag of the deal consists of $750-million payable on closing and another $500-million in a three-year promissory note.