Manara Mineral about First Quantum’s Zambian assets

Potential deal

Saudi Arabia’s Manara Minerals is nearing a deal to acquire a 15-20% minority stake in First Quantum Minerals’ Zambian copper and nickel assets, valued between $1.5 billion and $2 billion, according to sources. The joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund is in advanced talks, about acquiring 15%-20% equity in the Zambian assets. The deal is potentially closing by year-end. The deal is potentially worth between $1.5-2.0 billion.

Startegy aligns

This move comes as copper remains critical for the clean energy transition, used in electric vehicles and data centers. Manara’s strategy aligns with First Quantum’s plan to retain majority ownership while raising capital. Earlier this year First Quantum was in talks about the partial sale of the Zambian mines as well as it was also exploring the sale of the Cobre Las Cruces – First Quantum Minerals mine. This move was pivotal to First Quantum’s future, following the closure of its flagship Cobre Panama mine.

Other assets

First Quantum Minerals’ Kansanshi and Sentinel copper mines in Zambia are becoming critical assets following the closure of its flagship Cobre Panama mine. First Quantum also operates the Enterprise nickel mine in Zambia, with the Zambian mines contributing $1.08 billion in revenue in Q2 2023. The company plans to invest $1.3 billion at Kansanshi over the next five years, aiming to boost copper output to 277,000 tons per year by 2033.

Financial restructuring

First Quantum’s recent financial restructuring, including a $1 billion share offering, aims to strengthen its balance sheet. Manara Minerals, part of Saudi Arabia’s strategic push into metals like copper, nickel, and lithium, is in talks for minority stake purchases, aligning with the country’s vision to become a hub for battery and EV production.

The copper market is expected to see continued support, with prices forecast to rise above $10,000 per ton by 2025.

Other deal

Manara continues to expand its metals portfolio, positioning Saudi Arabia as a hub for battery and EV manufacturing, as global demand for copper is set to rise. Moreover, the company is also in talks with the Pakistan government to be part of the Reko Diq Mining Company (RDMC) copper mine. The Reko Dig project is currently under development, and Barrick owns it.