Suitors Eye Stake in FQMs’ Zambian Copper Mines
Rio Tinto Group and Saudi Arabia’s Manara Minerals Investment Co., alongside Mitsui & Co. and Sumitomo Corp., are reportedly considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, according to sources familiar with the matter.
First Quantum, open to selling up to 30% of its Zambian assets, including the Sentinel and Kansanshi mines, has attracted interest from potential buyers such as Zijin Mining Group Co. and Jiangxi Copper Co. Shares of First Quantum surged in response to the news.
With Zambia contributing significantly to First Quantum’s copper output and revenue, the company’s decision to sell part of its Zambian assets follows the closure of its flagship copper mine in Panama last year due to public protests.
Seeking to refinance debt, First Quantum has raised funds and expressed interest in divesting smaller mining assets.
While some major players remain cautious about investing in African mines, the rising demand for copper, particularly in electric vehicles and renewable energy infrastructure, has spurred interest in the region.
Saudi Arabia’s potential involvement underscores its efforts to secure metal supplies for industrial growth amid economic diversification away from oil.
