By Jane Chanda
First Quantum Minerals chief executive officer (CEO) Tristan Pascall says the company is considering strategic partnerships for its Zambian copper and Nickel assets, with a potential deal valued between $1.5 billion and $2 billion.
According to Africa markets media, Pascall stated that the company was open to partnerships in Zambia as long as they served the interests of the business, the government and all stakeholders.
He stated that First Quantum had confirmed talks over its Zambian assets, although details of the negotiations remained undisclosed.
“As we move forward, our focus is on finding the right partner that aligns with our goals and objectives,” he stated, while emphasising the importance of securing a beneficial partnership.
He stated that Saudi Arabia’s Manara Minerals was close to a deal to acquire a minority stake in First Quantum’s assets.
And analysts speculate that Chinese companies, such as Zijin Mining Group Co. and Jiangxi Copper Co., First Quantum’s second-biggest shareholder, may also be interested in acquiring a stake.
Pascall believed that partnerships could bring significant value to First Quantum’s Zambian operations, particularly with the right partner, as its Kansanshi and Sentinel Copper Mines mines had substantial growth potential that could be unlocked through strategic collaborations.
He further highlighted the financial pressures resulting from the Panama government’s shutdown of the Cobre Panama mine.
“The shutdown has significantly impacted our debt, and a stake sale would provide much-needed relief,” he stated.
“We’re awaiting a decision on the mine’s future and seeking permission to export 121,000 tonnes of copper concentrate stockpiled at the shuttered mine.”
Pascall also talked about the urgency of resolving the Cobre Panama mine’s shutdown, warning of potential consequences.
“We are facing a critical situation, and if we don’t make significant progress soon, we may have to take difficult decisions, including reducing our workforce,” stated Pascall.
“Maintaining the shuttered mine costs us between $11 million and $13 million per month, and with Panama’s President Mulino (José Raúl) aiming to address the issue in early 2025, time is of the essence.”
