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Saudi Arabia’s Manara Minerals is evaluating critical minerals projects in Zambia, according to Mines and Minerals Development Minister, Paul Kabuswe.
Speaking to Reuters on Thursday, Kabuswe said discussions were held Wednesday following the signing of a memorandum of understanding (MoU) the previous day to enhance cooperation in mineral exploration.
“They (Manara) are interested, but we do not know which ones yet,” Kabuswe noted at a mining conference in Riyadh, adding that an announcement on a potential mining deal is expected this year.
Saudi Arabia, under the leadership of Crown Prince Mohammed Bin Salman, is actively pursuing critical mineral investments, including copper and lithium, to diversify its economy away from oil dependency.
Manara, a joint venture between the Saudi Arabian Mining Company and the kingdom’s US$925 billion Public Investment Fund, is reportedly closing in on acquiring a minority stake in Canadian mining giant First Quantum Minerals’ Zambian copper and nickel assets, according to an October report by Reuters.
First Quantum confirmed on Wednesday that it is “assessing the potential benefits of a minority stake sale in Zambia” as part of its 2025 priorities.
Kabuswe acknowledged the talks between Manara and First Quantum but said the Zambian government was not privy to the details.
The Zambian government has been pushing for higher equity stakes, aiming for up to 30 percent shareholdings in new mining projects, a policy that Kabuswe said has not dampened investor interest despite mixed reactions from the private sector.
“We no longer want those agreements where we have 10 percent or 15 percent,” Kabuswe emphasized, adding that Zambia was also negotiating with Barrick Gold, Ivanhoe Mines, and Chinese investors for new mining ventures.
In a bid to increase mining revenues, the government has established a copper trading unit in partnership with Swiss-based commodities trader Mercuria.
This joint entity will trade copper sourced from mines where Zambia holds stakes.
Kabuswe revealed that Zambia preferred earnings to be calculated in metal output, allowing the government to sell its share directly instead of relying on cash dividends.
Zambia had set an ambitious target to raise copper production to three million metric tonnes annually by the end of the decade.
However, output dropped to 698,000 metric tonnes in 2023, down from 763,000 tonnes in 2022.
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