Mitsui Tops Bidding for Stake in First Quantum’s Zambian Copper Mines

Japan's Mitsui has emerged as the highest bidder for a significant stake in First Quantum Minerals's copper assets in Zambia, surpassing Saudi Arabia's state-backed Manara Minerals Investment, according to a report by Bloomberg News on November 19. The offer reportedly involves acquiring a 20% stake in the Sentinel and Kansanshi mines for about $2 billion, though negotiations are still ongoing and a final agreement is not guaranteed.

The bidding process has attracted significant interest due to the strategic importance of the Zambian copper assets. Manara Minerals had previously expressed interest in taking a 15% to 20% stake in the mines, with an estimated transaction value between $1.5 billion and $2 billion.

First Quantum's copper assets have also drawn attention from other major players, including Rio Tinto Group and Sumitomo However, earlier this year, First Quantum denied being in talks to divest a stake to Jiangxi Copper or any other company.

The Sentinel and Kansanshi mines are key contributors to Zambia's copper output, with Sentinel expected to produce 225,000 metric tons of copper in fiscal year 2024 and Kansanshi projected to produce 160,000 metric tons, according to S&P Global Market Intelligence data.