First Quantum Minerals, a Vancouver-based mining company with a significant presence in Zambia, may be facing a potential acquisition by Jiangxi, its top shareholder. Jiangxi is reportedly evaluating the possibility of acquiring one of First Quantum’s mines or a stake in one of them. This development comes as First Quantum accelerates the development of its copper mines in Zambia, aiming to commence production by 2026.
While rumors swirl about First Quantum’s future, including a possible takeover by fellow Canadian miner Barrick Gold, Jiangxi’s interest adds another layer of uncertainty. Barrick Gold has been diversifying its portfolio into copper, with aspirations to double copper production to 1 billion pounds by 2031. The company has already allocated $2 billion to the Lumwana super pit expansion in Zambia and holds a stake in the Reko Diq mine in Pakistan, expected to be one of the world’s largest when production begins in 2028.
The potential acquisition from Jiangxi raises questions about the direction First Quantum Minerals may take moving forward. With its ownership of the Sentinel copper mine and an 80% stake in the Kansanshi mine, First Quantum has established a strong presence in Zambia’s copper mining industry, Africa’s second-largest copper producer. Additionally, First Quantum is involved in the Fishtie copper project, located near the Democratic Republic of Congo’s border.
First Quantum has announced plans to address its debt obligations by the end of January, providing further insight into the company’s strategy and financial outlook. Amidst these discussions, the potential involvement of Jiangxi and the rumors of a takeover by Barrick Gold further compound the uncertainty surrounding First Quantum Minerals. As the mining industry continues to evolve, the fate of First Quantum and its copper mines in Zambia remains uncertain.