Mitsui & Co. Leads Bidding for First Quantum’s Zambian Copper Mines

Japanese trading giant Mitsui & Co. has emerged as the top bidder for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, outpacing a rival offer from Saudi Arabia’s state-backed Manara Minerals Investment Co., according to sources familiar with the matter.

Mitsui’s bid is reportedly higher than Manara’s and involves acquiring roughly a 20% interest in First Quantum’s Sentinel and Kansanshi mines for approximately $2 billion.

Negotiations between Mitsui and First Quantum are underway, though no final agreement has been reached, and other outcomes, including selling the stake to another party or not proceeding with a deal, remain possible.

First Quantum initiated the sale of its Zambian assets following the closure of its flagship copper mine in Panama last year due to public protests. The move left the company under pressure to refinance the debt used to develop the Panamanian operation.

Copper is critical for electric vehicles and renewable energy infrastructure, fueling growing investor interest amid a shortage of new mines.

Zambia accounted for nearly half of First Quantum’s copper output and revenue in 2023, contributing over $450 million in operating profit.

Mitsui’s longstanding interest in securing resources for Japan’s industries aligns with its bid, but the company faces stiff competition from state-backed players in the Middle East and China.

Manara, backed by Saudi Arabia’s sovereign wealth fund, is leading the kingdom’s drive to dominate metals and mining, having recently acquired a 10% stake in Vale SA’s base metal unit for $2.5 billion.

While neither Mitsui, First Quantum, nor Manara has commented on the developments, the outcome of this bidding war could significantly influence the global copper supply chain and the strategic positioning of all involved.