First Quantum Minerals is delaying the sale of a minority stake in its Zambian mines while seeking a long-term partner, focusing on quality agreements over speed. The company also aims to improve its balance sheet amidst ongoing negotiations with Manara for equity acquisition. This strategy is critical following the shutdown of their Cobre Panama mine.
First Quantum Minerals is taking a measured approach regarding the sale of a minority stake in its Zambian copper mines. CFO Ryan MacWilliam stated that there is no urgency to finalize any deal, focusing instead on identifying a reliable long-term partner without specific deadlines. “We have been consistent throughout that any arrangements we enter into in Zambia will be for the next 25 years,” he emphasized.
CEO Tristan Pascall previously highlighted assessing the potential benefits of a minority stake sale in Zambia as a target for 2025, along with improving the company’s balance sheet and addressing Zambian power challenges. Current discussions involve Saudi Arabian mining firm Manara, which is negotiating to acquire a 15% to 20% equity share in First Quantum’s Zambian operations.
The need for investment arises as First Quantum seeks to finance the expansion of its Kansanshi operation due to the recent shutdown of its flagship Cobre Panama mine. The Zambian assets, crucial for the Canadian miner’s growth strategy, also involve collaboration with the Zambian government, which holds a 20% stake in these resources. MacWilliam stated, “It’s really about getting the right agreement rather than a quick agreement.”
First Quantum Minerals is not rushing to sell a minority stake in its Zambian copper mines, seeking a strategic long-term partnership instead. The focus is on a beneficial agreement that accounts for both investor interests and government stakeholding. Current negotiations with Manara highlight the importance of financing as the company aims for growth after operational challenges in Panama.
Original Source: www.miningmx.com
