First Quantum talks with potential partners about Zambian assets

First Quantum Minerals, a Canadian miner, said that it is in discussions with potential partners about its Zambian assets. It did not reveal the names of these firms.

Three people with knowledge of the deal said that Saudi Arabian Manara Minerals was close to a deal for a minority share in First Quantum Zambian copper-nickel assets.

First Quantum CEO Tristan Pascall stated on a conference with analysts that "we're more open for partnerships and that includes Zambia."

In morning trading, shares of the company rose 3% to C$18.93.

Copper is an important element in the clean energy revolution, as it is used in electric cars, and to power data centers that use artificial intelligence.

First Quantum's stake sale would reduce its debt, which has ballooned since the Panama government ordered the closure of the flagship Cobre Panama mine last December due to protests. The company is awaiting a decision from the Panama government on the future of the mine, as well as approval to ship 121,000 tons of copper concentrate stuck in the mine.

The mine would be able to operate with the money it receives from selling copper.

The Canadian miner spends between $11 and $13 millions per month on maintenance. Pascall warned the company that it would be forced to reduce costs in the next few months, which included reducing its workforce. Reporting by Tanay dhumal from Bengaluru, and Divya rajagopal from Toronto; Editing and production by Maju Samuel and Rod Nickel

(source: Reuters)