Canadian mining company First Quantum Minerals is reportedly in discussions to divest a stake in its copper mines in Zambia to one of its shareholders, Jiangxi Copper. The negotiations come as First Quantum looks to address setbacks it recently faced in Panama.
First Quantum owns the Sentinel mine in Zambia outright and holds an 80% stake in the Kansanshi mine, with the remaining 20% owned by the Zambian Government. These two mines have been lucrative for the company, generating $943m in revenue and $210m in operating profit in the third quarter of last year.
The potential deal with Jiangxi Copper could involve the sale of one of the mines or a portion of one. However, the details have not been confirmed and the outcome of the negotiations is unclear at this point.
First Quantum’s decision to engage in talks with Jiangxi Copper came after a setback in Panama, where the company was ordered to halt operations at its Cobre Panama mine. This prompted First Quantum to explore alternative opportunities to ensure its financial stability and growth prospects.
The sale of the stake in the Zambian mines could provide First Quantum with a significant cash injection, as these assets are estimated to be valued at nearly $6bn based on their earnings. It remains to be seen whether the negotiations will result in a successful deal, but the discussions indicate a strategic move by First Quantum to secure its position in the mining industry.
The source of the article is from the blog maltemoney.com.br