First Quantum Minerals, a Canadian mining company, is actively exploring potential partnerships for its Zambian assets, the company announced on Wednesday.
While names were not disclosed, the company is open to collaborations that benefit its Zambian operations, the Zambian government, and other stakeholders.
Last week, Reuters reported that Saudi Arabia’s Manara Minerals is nearing a deal to acquire a minority stake in First Quantum’s Zambian copper and nickel assets.
This potential partnership, valued between $1.5 billion and $2 billion, is gaining attention amid the growing demand for copper in the clean energy transition.
First Quantum’s CEO, Tristan Pascall, emphasized the company’s willingness to partner, especially in Zambia, as long as it aligns with the interests of all parties involved.
The potential Manara Minerals deal could provide First Quantum with a much-needed cash infusion to reduce its debt, which has surged following the closure of its flagship Cobre Panama mine in December.
The company is currently awaiting a decision on the future of the Cobre Panama mine and approval from Panama’s new government to export 121,000 metric tons of copper concentrate.
The sale of this copper would provide essential working capital to maintain the mine’s operations.
However, Pascall warned that without this approval, the company may be forced to cut costs, including reducing its workforce.