First Quantum Minerals is delaying the sale of its Zambian copper mines to secure a long-term partnership. The company is in discussions with Saudi Arabian firm Manara, which may acquire a minority stake. The focus is on ensuring beneficial agreements for investors and the Zambian government, especially after operational challenges arose from the closure of its Cobre Panama mine.

First Quantum Minerals, based in Toronto, is not hurrying to sell its stake in Zambian copper mines. The company aims to establish a lasting partnership and has no fixed timeline for the sale. According to Executive MacWilliam, the priority is securing a favorable agreement that supports both the company’s long-term strategies and Zambian government interests, which maintains a 20% stake in these assets.

Currently, First Quantum is in discussions with Saudi Arabian mining firm Manara, which is reportedly considering acquiring a 15 to 20 percent equity share in First Quantum’s Zambian operations. This initiative is critical as First Quantum seeks funds for output expansion at its Kansanshi mine, located in northwest Zambia. The growth of First Quantum’s Zambian copper and nickel holdings has gained prominence following the closure of its Cobre Panama mine, once the firm’s flagship operation.

First Quantum is strategically delaying the sale of its Zambian copper mine stake to ensure it selects the right partner, emphasizing long-term agreements. With ongoing talks with Manara for a potential minority stake purchase, the focus remains on expansion and mutual benefit for all parties involved. The importance of the Zambian assets has grown, especially following setbacks in Panama, highlighting their role in First Quantum’s future growth plans.

Original Source: www.theglobeandmail.com