Mitsui & Co., a leading Japanese trading conglomerate, is reported to have submitted the top bid in the race to acquire a stake in First Quantum Minerals’ Zambian copper and nickel operations.
This move underscores Mitsui’s increasing focus on metals essential to the energy transition, including copper, which is vital for electric vehicle production and renewable energy infrastructure.
First Quantum owns the Kansanshi and Sentinel copper mines, as well as the Enterprise nickel mine in Zambia. These assets are critical to its portfolio, especially after operational challenges at its flagship Cobre Panama mine.
First Quantum is reportedly looking to sell a minority stake to strengthen its financial position and support future expansions, such as a $2 billion upgrade at Kansanshi to significantly boost copper output by 2033.
First Quantum’s stock has surged approximately 67% in Toronto trading this year, elevating its market capitalization to around C$15.1 billion ($10.8 billion). Zambia, a key region for the company’s operations, contributed about half of its total copper production and revenue in 2023, generating over $450 million in operating profit.
While Mitsui leads the bidding, Saudi Arabia’s Manara Minerals has also shown strong interest. Manara, a joint venture backed by the Saudi Public Investment Fund, is exploring similar stakes as part of Saudi Arabia’s push into critical minerals to support its burgeoning clean energy and battery industries.
This potential deal aligns with First Quantum’s strategy to retain operational control while reducing debt and capitalizing on rising copper prices, projected to exceed $10,000 per ton by 2025.
It also reflects growing international interest in Africa’s vast but underdeveloped mineral resources.
