First Quantum will not rush into sale of Zambian copper mines stake

First Quantum Minerals will not rush into a deal to sell a minority stake in its Zambian copper mines, CFO Ryan MacWilliam told analysts on Wednesday after the miner’s fourth-quarter results.

The Toronto-based miner wants to secure a long-term partner at its Zambian mines and there are no “specific timelines” for the sale, he said.

“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.”

Saudi Arabian mining company Manara is in advanced talks to acquire between 15% and 20% equity in First Quantum’s Zambian assets, Reuters reported last October, citing sources. First Quantum has said it needs the money to finance output expansion at its Kansanshi operation in the northwest of the country.

The Canadian miner’s Zambian copper and nickel assets have become key to its growth after authorities in Panama shut down its then flagship Cobre Panama mine.

First Quantum wants a deal that works for its investors as well as the Zambian government, which owns a 20% stake in the assets, MacWilliam said.

(By Felix Njini; Editing by Jane Merriman)

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