First Quantum Minerals is in talks with potential partners for its Zambian assets, the Canadian miner said on Wednesday, without disclosing names of the firms.
Last week, Reuters reported that Saudi Arabia’s Manara Minerals is closing in on a deal to buy a minority stake in First Quantum’s Zambian copper and nickel assets, citing three people familiar with the details.
“We’re more open to partnerships, and that includes in Zambia, but only if it’s in the interest of our Zambian business, the Zambian government and all the stakeholders involved,” First Quantum CEO Tristan Pascall said on a conference call with analysts.
Shares of the company were up 3% at C$18.93 in morning trading.
The potential Manara Minerals deal, which could be worth between $1.5 billion and $2 billion, is in the spotlight as copper is a much sought-after element for the clean energy transition due to its uses in manufacturing electric cars and supplying power to data centers for artificial intelligence.
For First Quantum, a stake sale in the Zambian mine would help reduce debt that has ballooned after its flagship Cobre Panama mine was ordered shut last December by the Panama government due to public protests. The company is waiting for a decision on the mine’s future and also for approval from Panama’s new government to ship 121,000 metric tons of copper concentrate that is stuck inside the mine.
Approval to sell that copper would provide working capital to maintain the mine.
The Canadian miner is spending between $11 million and $13 million per month to maintain the mine. Pascall warned that in a few months the company would have to cut costs, including reducing the workforce.
An opportunity for Zambia (using NAPSA money!) to increase its shareholding in the mine. Owning more of the mine as a sleeping partner, while revamping the taxation system by sealing all loopholes, would be a win-win for Zambia.
They have seen the writing on the wall
Chinese here we come
Big shame to my nation, we are supposed to be owning these huge mines, but no. A Canadian firm owns big mines & are looking for fellow foreigners to continue raping our nation of her resources
We are supposed to be having Zambian multi-billionaires in US Dollars like the Dangotes of this Africa, but no, back home pipo are so small minded that they will frustrate you from being a billionaire
It will start with the seating president at that time to harrass you, they set ZRA, DEC, Anti-Corruption Entities against you just to stop you from being a billionaire & just the sheer of jealous among your peers
How do you expect Zambia to prosper? Proper nations supports / promotes their citizens to be billionaires b/coz the more billionaires are in a nation the greater the economy of that nation!!!!!
That’s why most of us who are doing well here in diaspora are hesitant to come & settle home. We discuss this among the elite rich Zambians here in diaspora & the only thing we do is just build some houses back home while all our riches are with us here b/coz back home too much jealous