First Quantum Minerals to Sell Çayeli Copper-Zinc Mine in Türkiye for $340 Million
First Quantum Minerals Sells Çayeli Mine in Türkiye to Cengiz Holding for $340M to Focus on Core Assets
Canadian mining company First Quantum Minerals has agreed to sell its Çayeli Mine in Türkiye to a company controlled by Cengiz Holding as part of a strategy to raise capital and refocus on priority assets.
Under a binding agreement, Turkish construction and industrial firm Cengiz Insaat will acquire the underground copper-zinc operation for $340 million in cash, including an advance payment of $50 million, according to a statement released by First Quantum.
The transaction is expected to close in the second or third quarter of the year, subject to customary conditions.
Strategic Portfolio Restructuring
First Quantum’s Chief Executive Officer Tristan Pascall said the sale reflects the company’s disciplined approach to managing its asset portfolio as it focuses on key strategic priorities.
Among those priorities is the potential restart of the company’s major copper project, Cobre Panamá in Panama.
“For more than a decade, the performance of Çayeli within First Quantum has been underpinned by the dedication of its employees and a strong safety and operating culture,” Pascall said in a statement.
Expansion Strategy for Cengiz Holding
The acquisition is part of an aggressive expansion strategy by Cengiz Holding, one of Türkiye’s largest industrial conglomerates, which has been actively increasing its presence in the mining sector.
Recently, the group completed a major deal to acquire the Çöpler Gold Mine from SSR Mining for approximately $1.5 billion, marking one of the largest mining transactions in the country in recent years.
Long-Running Copper-Zinc Operation
Located along the Black Sea coast in northeastern Türkiye, the Çayeli mine has been in operation since 1994.
The underground operation produces copper and zinc concentrates from a volcanic-hosted massive sulphide (VHMS) deposit.
According to company estimates, the mine has reserves expected to support production until at least 2036.
Recent Asset Divestments
The sale of the Çayeli mine marks the second asset divestment by First Quantum in recent months. In December, the company sold the past-producing Cobre Las Cruces Mine in Spain for $190 million.
These transactions are part of the company’s broader effort to streamline operations and strengthen its financial position following challenges related to the shutdown of its flagship Panamanian operation.
Market Reaction
Shares of First Quantum initially rose following the announcement before reversing earlier gains. By midday trading, the stock was down about 1.7%, giving the company a market capitalization of roughly C$27.5 billion (about $20.2 billion).
Despite the short-term decline, analyst Myles Allsop of UBS upgraded the stock to a “Buy” rating from “Neutral”, raising his price target to C$50 from C$38.
Analysts say the asset sale could help strengthen First Quantum’s balance sheet while allowing the company to focus on its largest and most strategic mining operations.
