Saudi Arabia’s Manara Minerals is nearing the completion of a deal to acquire a minority stake in First Quantum Minerals’ Zambian copper and nickel operations, according to sources familiar with the negotiations. Manara, a joint venture between Saudi mining giant Ma’aden and the $925-billion Public Investment Fund, is in advanced talks to purchase a 15% to 20% stake in First Quantum’s Zambian assets, valued between $1.5 billion and $2 billion.
The transaction is expected to be finalized by the end of the year, though ongoing discussions mean that the deal is not yet guaranteed. Both First Quantum and Manara have declined to comment on the matter.
This deal is of particular significance as copper plays a critical role in the clean energy transition, being essential in the manufacturing of electric vehicles and AI-driven data centers.
First Quantum has been looking to sell a partial stake in its Zambian operations, including the Kansanshi and Sentinel copper mines, along with the Enterprise nickel mine, in an effort to raise capital and reduce debt following the closure of its Cobre Panama mine last year.
Manara has emerged as the leading bidder, in line with First Quantum’s strategy to retain majority control of its Zambian mines. The Zambian assets contributed $1.08 billion to First Quantum’s revenue in Q2 of this year, with Zambia’s state-owned ZCCM-IH holding a 20% stake in the Kansanshi mine.
First Quantum is set to invest $1.3 billion over the next five years to boost copper production at Kansanshi, targeting an annual output of 277,000 tons by 2033, compared to 130,000 tons in 2023.
The potential deal is part of Saudi Arabia’s broader plan to secure critical minerals like copper, nickel, and lithium as it seeks to position itself as a global hub for electric vehicle and battery production.
Manara is also engaged in discussions to invest in Pakistan’s Reko Diq copper mine, a project being developed by Barrick Gold in partnership with Pakistani state entities.
With analysts forecasting that copper prices could surpass $10,000 per ton by 2025 due to a growing supply shortage, the timing of this deal comes as global demand for copper continues to rise.
