Saudi Arabia Eyes Stake in First Quantum’s Zambian Copper Mines
Saudi Arabia has intensified its push into the global mining sector by establishing Manara Minerals, a company dedicated to investing in mines worldwide. Following its acquisition of a 10% stake in a subsidiary of Brazil's Vale Group in 2023, Manara Minerals is now targeting the copper mines controlled by Canada's First Quantum in Zambia.
On October 30, Saudi Arabia confirmed that it was in advanced talks to acquire a stake in First Quantum's Zambian copper assets. According to Robert Wilt, Vice-President of Manara Minerals, copper is an “absolute priority,” particularly given its critical role in the country’s energy transition initiatives.
Copper is expected to become increasingly essential for renewable energy technologies. According to Nornickel, the copper requirements for wind power generation are set to increase from between 300,000 and 400,000 metric tons per year in 2022-23 to between 1.1 million and 1.4 million metric tons by 2030-2035. Against this backdrop, Manara Minerals is reportedly negotiating to acquire a 15-20% stake in First Quantum’s Kansanshi, Sentinel, and Enterprise copper and nickel mines in Zambia, which are expected to produce at least 375,000 tonnes of copper in 2024.
The value of the prospective stake is estimated to be between $1.5 billion and $2 billion, with a potential agreement expected by the end of the year. In addition to Zambia, Saudi Arabia is also eyeing opportunities in the Democratic Republic of Congo (DRC), Africa’s leading copper producer. The DRC holds vast copper reserves, which are primarily exploited by Chinese companies, and is actively seeking new investors. A memorandum of understanding on mining cooperation has already been signed between Saudi Arabia and the DRC.
Saudi Arabia’s interest in Africa’s copper resources is part of a broader strategy shared by other international players. China has invested heavily in copper projects in Zambia and the DRC, while the United Arab Emirates recently entered the Mopani copper mines in Zambia. American company KoBold Metals is also considering an investment of up to $2.3 billion in Zambia's Mingomba deposit, which is touted as the country’s largest.
