Ivanhoe’s Kipushi zinc mine in DRC officially reopens
The restart marked exactly a century since the mine first went into production.
First Quantum Minerals (TSX: FM) has confirmed that is actively engaging with prospective partners for its Zambian copper and nickel assets, without providing details on the negotiations.
CEO Tristan Pascall said in a conference call to discuss third quarter results, that the company was open to partnerships, particularly in Zambia, as long as they serve the interests of the business, the country’s government and all stakeholders.
While the names of the firms involved are yet to be disclosed, media reports last week suggested that Saudi Arabia’s Manara Minerals was the one close to a deal to acquire a minority stake in the Canadian miner assets.
The potential deal with Manara, estimated to be worth between $1.5 billion and $2 billion, has garnered attention due to the increasing demand for copper and nickel, considered essential to the energy transition.
The assets could have also attracted interest from Chinese companies such as Zijin Mining Group Co. and Jiangxi Copper Co., which is First Quantum’s second-biggest shareholder, according to market rumours.
For First Quantum, a stake sale in its Kansanshi and Sentinel copper mines would provide much-needed relief from its mounting debt, which escalated after the Panama government ordered the shutdown of its flagship Cobre Panama mine.
The Canadian company is awaiting a decision on the mine’s future and seeking permission from Panama’s new government to export 121,000 tonnes of copper concentrate stockpiled at the shuttered mine. This approval is crucial for the company, which is spending between $11 million and $13 million per month to maintain the mine, Pascall said.
The executive cautioned that while President Mulino said his government intends to address the issue in early 2025, without significant progress in the coming months, cost-cutting measures, including workforce reductions, may become necessary.
(With files from Reuters, Bloomberg)
