First Quantum Minerals (TSX: FM) has confirmed that is actively engaging with prospective partners for its Zambian copper and nickel assets, without providing details on the negotiations.
CEO Tristan Pascall said in a conference call to discuss third quarter results, that the company was open to partnerships, particularly in Zambia, as long as they serve the interests of the business, the country’s government and all stakeholders.
While the names of the firms involved are yet to be disclosed, media reports last week suggested that Saudi Arabia’s Manara Minerals was the one close to a deal to acquire a minority stake in the Canadian miner assets.
The potential deal with Manara, estimated to be worth between $1.5 billion and $2 billion, has garnered attention due to the increasing demand for copper and nickel, considered essential to the energy transition.
The assets could have also attracted interest from Chinese companies such as Zijin Mining Group Co. and Jiangxi Copper Co., which is First Quantum’s second-biggest shareholder, according to market rumours.
For First Quantum, a stake sale in its Kansanshi and Sentinel copper mines would provide much-needed relief from its mounting debt, which escalated after the Panama government ordered the shutdown of its flagship Cobre Panama mine.
The Canadian company is awaiting a decision on the mine’s future and seeking permission from Panama’s new government to export 121,000 tonnes of copper concentrate stockpiled at the shuttered mine. This approval is crucial for the company, which is spending between $11 million and $13 million per month to maintain the mine, Pascall said.
The executive cautioned that while President Mulino said his government intends to address the issue in early 2025, without significant progress in the coming months, cost-cutting measures, including workforce reductions, may become necessary.
Source: Mining.com
Zambia needs to increase its shareholding. This is a rare opportunity that should not be missed.
how will Zambia fund the increase in its shareholding?
There is a restructured national debt of over $19 billion hanging over our heads.
Africa we joke too much……..CAN A ZAMBIAN COMPANY GO TO CANADA AND START TELLING THE CANADIAN GOVERNMENT WHAT TO DO….We’re jokers….allowing foreign companies to come and take over and be in charge of our own minerals….where’s the logic?…
You are forgetting Zambia is cash poor with a restructured national debt of over $19 billion.
Yes Zambia “RESOURCE RICH” but absolutely “CASH POOR”.
In other words you don’t have money to harness those mineral resources cost effectively and efficiently. The most Zambia can do is get taxes from the foreign mining companies.
As I understand it, First Quantum has been one of the better miners in Zambia keeping faith with the country and behaving in a correct manner. Their weakness would not be good if their replacement is another faceless Middle Eastern company. Has anyone heard anything at all from the UAE owners of Mopani? Is there any likelihood that the community of Mufulira will benefit at all from the UAE ownership?