
MANARA Minerals is said to be closing in on a deal to buy a minority stake in Canadian miner First Quantum Minerals’ Zambian copper and nickel assets.
Citing three people familiar with the details, Reuters said advanced talks were for Manara to buy between 15% and 20% equity in the Zambian mines, worth potentiallly between $1.5bn and $2bn. Manara is a joint venture between Saudi Arabian mining company Ma’aden and the country’s $925bn Public Investment Fund.
First Quantum’s sale of a stake in the Zambian assets could be concluded by year-end, said Reuters.
First Quantum earlier this year said it was in talks with potential investors to sell a partial stake in the Zambian mines, while also exploring the sale of its Spanish mine Las Cruces to raise capital and cut debt after the Panama government ordered the shutdown of its flagship Cobre Panama mine.
Reuters said Manara had emerged as a front runner for the purchase as the Saudi firm’s strategy to acquire a minority interest fits with First Quantum’s aim to retain a majority stake in the mines.
First Quantum owns the Kansanshi and Sentinel copper mines in Zambia, which have become key to future output after Cobre Panama’s shutdown. First Quantum also owns the Enterprise nickel mine in the country.
“This is not a surprise – First Quantum has disclosed exploring a sale to shore up its balance sheet and the Saudis have been increasingly active in acquiring mining stakes,” Citigroup analysts said in a note after Reuters’ story.
Manara has made significant investments in metals including copper, nickel and lithium as part of Saudi Arabia’s aggressive push to secure minerals and transform into a hub for battery and electric vehicle manufacturing.
The firm is also in talks with the Pakistan government to be part of the Reko Diq copper mine currently under development, which is owned by Barrick Gold, Pakistan state enterprises and the provincial government of Balochistan, said Reuters.