Sign in
PIF-Ma’aden JV Manara Minerals is reportedly close to acquiring a USD 1.5-2 bn minority stake in Canadian miner First Quantum Minerals‘ copper and nickel assets in Zambia, Reuters reports, citing sources with knowledge of the matter. Manara is looking to acquire a 15-20% stake in the mines. The agreement is expected to close by the end of the year, though negotiations are ongoing.
REFRESHER- Manara Minerals has been eyeing a stake in First Quantum’s Zambian assets since earlier this year, with an eye on copper mines Sentinel and Kansanshi. First Quantum, meanwhile, disclosed earlier this year that it was in discussions with potential investors to sell stakes in its Zambian operations while also looking to offload other assets to offset debts and compensate for the shutdown of other operations.
Manara emerged as a top contender for the sale due to the fact that its plans to acquire a minority stake fit well with First Quantum’s plan to retain majority ownership in its highly profitable Zambian mines.
Zambia’s mines are crucial for the global green energy transition: Zambia is Africa’s second-largest copper producer, and it plans to more than quadruple its output in the coming decade. The nation also has deposits of cobalt, graphite and lithium –– critical minerals for EV and battery storage production. Copper is used in everything from consumer electronics to home appliances, and it is key to powering renewable energy systems, including solar, hydro, thermal, and wind, making it key to the energy transition.
Manara has been expanding its mining portfolio: Manara Minerals completed the acquisition of a minority stake in Brazilian miner Vale Base Metals (VBM) back in May. The transaction is worth an estimated USD 2.6 bn, based on a USD 26 bn enterprise value VBM had previously disclosed. The company also submitted an offer in August to acquire a 15% stake in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan.
