Saudi Arabia’s Manara Minerals Nears Deal for Stake in First Quantum’s Zambian Copper and Nickel Mines

Riyadh, October 17, 2024 (Saudi Arabia Breaking News) – Manara Minerals, a joint venture between Saudi Arabia’s mining giant Ma’aden and the Public Investment Fund (PIF), is reportedly in advanced negotiations to acquire a minority stake in Canadian firm First Quantum Minerals’ Zambian copper and nickel assets. Sources close to the matter disclosed that Manara is considering a stake between 15% and 20%, valued at an estimated $1.5 billion to $2 billion.

The potential deal could close by the end of the year, although no agreement has been finalized, according to sources. Both Manara Minerals and First Quantum declined to comment on the ongoing discussions.

Manara’s interest aligns with Saudi Arabia's broader strategy to secure key minerals critical for the clean energy transition, including copper, which is essential for electric vehicles and data centers supporting artificial intelligence. This move complements the Saudi government’s ambitions to diversify its economy and position itself as a leader in green technologies.

First Quantum owns several significant mining assets in Zambia, including the Kansanshi and Sentinel copper mines, as well as the Enterprise nickel mine. These mines have become increasingly valuable following the shutdown of First Quantum’s flagship Cobre Panama mine. The Zambian mines generated $1.08 billion in revenue for First Quantum in Q2 2024, emphasizing their importance in the company's portfolio.

As copper prices are forecasted to remain high amid growing demand, Manara’s potential stake in these assets could yield substantial returns. Additionally, this acquisition supports Saudi Arabia’s commitment to the metals and mining sector, with copper playing a pivotal role in the Kingdom's vision to expand into battery and electric vehicle manufacturing.

First Quantum has faced financial challenges recently, losing significant revenue following the closure of the Cobre Panama mine. In response, the company has undertaken capital restructuring initiatives, including a $1 billion share offering, and is exploring further asset sales to reinforce its balance sheet.

Meanwhile, Manara has been aggressively expanding its footprint in strategic metals, including ongoing discussions to participate in Pakistan’s Reko Diq copper mine. With copper prices expected to continue their upward trajectory, Manara’s potential stake in First Quantum’s Zambian mines could be a valuable addition to Saudi Arabia’s growing portfolio in the global mining sector.