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Manara Minerals, a joint venture between Saudi Arabia’s Ma’aden and the country’s US$925 billion Public Investment Fund, is reportedly in advanced talks to acquire a minority stake in Canadian miner First Quantum Minerals’ Zambian copper and nickel assets.
The deal, expected to be worth between US$1.5 billion and US$2 billion, would see Manara securing between 15 percent and 20 percent equity in the mines.
According to a report by Reuters, as cited by Miningmix.com and Zambia Monitor, the sale of this stake could be finalized by the end of the year.
First Quantum, which owned the Kansanshi and Sentinel copper mines, as well as the Enterprise nickel mine in Zambia, had been seeking to raise capital and cut debt, following the Panama government’s order to shut down its flagship Cobre Panama mine.
First Quantum had previously announced that it was exploring the sale of a partial stake in its Zambian assets and also considering selling its Spanish mine, Las Cruces.
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Manara had emerged as the frontrunner in the bidding process, with its strategy of acquiring a minority interest aligning with First Quantum’s objective to maintain a majority stake.
Citigroup analysts noted that this move was expected, given First Quantum’s stated goal of shoring up its balance sheet.
It also highlighted Saudi Arabia’s growing interest in acquiring mining stakes as part of the kingdom’s broader strategy to secure critical minerals, including copper, nickel and lithium, for its push into battery and electric vehicle manufacturing.
Manara is also reportedly in discussions with the Pakistan government to invest in the Reko Diq copper mine, which is currently under development and owned by Barrick Gold, Pakistan state enterprises, and the provincial government of Balochistan.
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