KEY POINTS
- First Quantum is prioritizing long-term partnerships over quick deals.
- The company needs investment to expand its Kansanshi copper mine.
- The Zambian government will play a key role in any agreement.
First Quantum Minerals is taking its time in deciding the sale of a minority stake in its Zambian copper mines, emphasizing that securing the right partner is more important than closing a quick deal.
Speaking after the company’s fourth-quarter earnings report, Chief Financial Officer Ryan MacWilliam told analysts that there is no pressure to finalize a deal within a set timeframe.
“We have been consistent throughout that any arrangements we enter into in Zambia will be for the next 25 years,” MacWilliam said. “It’s really about getting the right agreement rather than a quick agreement.”
The Toronto-based mining company has been in talks with Saudi Arabia’s Manara Minerals, which is reportedly interested in acquiring a 15 to 20 percent stake in First Quantum’s Zambian assets.
The company has said it needs the investment to expand operations at its Kansanshi mine, one of Zambia’s most significant copper and nickel production sites.
Zambian assets crucial to First Quantum’s future
With the closure of its flagship Cobre Panama mine, First Quantum is increasingly relying on its Zambian operations for long-term growth.
Also, the Zambian government, which already owns a 20 percent stake in the company’s mines, is expected to play a key role in any potential agreement.
According to Reuters, MacWilliam stressed that the deal must benefit both investors and Zambia, ensuring mutual benefits for all parties involved.
“We are focused on securing a partnership that works for our investors and aligns with Zambia’s long-term mining strategy,” he said.
Despite the financial urgency created by the Panama mine shutdown, First Quantum remains committed to negotiating a favorable deal rather than rushing into an agreement that could prove unfavorable in the long run.
What’s next for First Quantum?
As negotiations continue, industry analysts believe that First Quantum’s deliberate approach reflects a desire to ensure long-term financial stability and operational security in Zambia.
Thanks to its considerable copper deposits, Zambia is establishing itself as a major power in the worldwide movement toward renewable energy, driving up copper market requirements.
Government officials endorse international investment in mining sector operations, which makes Zambia an important mining location.
Any deal between First Quantum and potential investors like Manara Minerals could further strengthen Zambia’s mining industry while securing the company’s future growth.
For now, First Quantum has made it clear: it’s not about how fast the deal happens, but how well it’s structured.
