African Critical Mineral Competition: Canadian Mining Company First Quantum Minerals Decides to Retain Its Shares in Zambian Copper Mines

¬ First Quantum Minerals will no longer sell its minority stake in the Sentinel and Kansanshi copper mines in Zambia

¬ The company recently entered into a $1 billion gold production flow agreement with Royal Gold Inc. for the Kansanshi mine

¬ The company made this decision as its closed Cobre mine in Panama has resumed exports, although production remains suspended

First Quantum Minerals has decided to retain its shares in the Sentinel and Kansanshi copper mines in Zambia, abandoning its previous plan to sell its minority stake. This move was confirmed by CEO Tristan Pascal in a statement published by Bloomberg on August 25.

Pascal stated that the company is still exploring potential partners but has no intention of selling its interests in the Zambian mines. This Canadian mining group had previously indicated in 2024 its intention to bring in joint venture partners to fund the operations of its wholly-owned Sentinel mine and its 80% owned Kansanshi mine.

This plan was formulated after the closure of its Cobre mine in Panama in 2023, which accounted for 93% of the group's copper production. The move aimed to maintain operations and reduce debt burdens. Manara Minerals from Saudi Arabia expressed interest, but the deal ultimately fell through.

Instead of selling shares, First Quantum recently raised $1 billion through a flow agreement with Royal Gold Inc. Under the agreement, Royal Gold will acquire part of the gold production from the Kansanshi mine, which is a byproduct of copper production.

This shift highlights a change in its financing strategy, as the mining company seeks other ways to reduce leverage while maintaining control over key assets. This strategic shift also comes as the Cobre mine resumes exports, although production remains suspended.

Earlier this month, First Quantum stated it would continue to "focus on the debt capital market, seeking opportunities to manage its maturing debt."

Source: ecofinagency

Original: www.toutiao.com/article/1841570224623625/

Statement: This article represents the views of the author.