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First Quantum Minerals is hunting for prospective partners for its Zambian copper and nickel assets. CEO Tristan Pascall said that the company was open to partnerships, as long as they serve the interests of the business, the country’s government, and all stakeholders.
First Quantum Minerals is hunting for prospective partners for its Zambian copper and nickel assets. CEO Tristan Pascall said that the company was open to partnerships, 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 USD 1.5 billion and USD 2 billion, has garnered attention due to the increasing demand for copper and nickel, considered essential to the energy transition. According to the market, 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.
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 USD 11 million and USD 13 million per month to maintain the mine.
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The company 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.
