First Quantum Minerals announced on Wednesday that it is in discussions with potential partners for its Zambian assets, though the company did not disclose the names of the firms involved.
This follows a recent report by Reuters suggesting that Saudi Arabia’s Manara Minerals is nearing a deal to acquire a minority stake in First Quantum’s Zambian copper and nickel operations. The report cited three sources familiar with the matter.
“We are more open to partnerships, including in Zambia, but only if it benefits our Zambian business, the Zambian government, and all stakeholders,” said First Quantum CEO Tristan Pascall during a conference call with analysts.
The company’s stock rose 3% to C$18.93 during morning trading.
The potential deal with Manara Minerals, valued at an estimated $1.5 billion to $2 billion, is gaining attention due to copper’s critical role in the clean energy transition, where it is essential for manufacturing electric vehicles and powering data centers for artificial intelligence.
For First Quantum, selling a stake in its Zambian assets would help alleviate its growing debt, which has surged since its flagship Cobre Panama mine was shut down last December following public protests.
The company is still awaiting decisions on the mine’s future and approval from Panama’s new government to ship 121,000 metric tons of copper concentrate currently stranded at the site.
The sale of that copper would provide much-needed working capital to keep the mine operational. Currently, First Quantum is spending $11 to $13 million per month to maintain the mine, and Pascall has warned that, without a resolution, the company may soon need to cut costs, including workforce reductions.
