Mitsui Outbids Saudi Arabia for Stake in First Quantum’s Zambian Copper Mines
Mitsui, a major Japanese trading firm, has reportedly outbid Saudi Arabia's Manara Minerals for a minority stake in Canada's First Quantum Minerals' copper mines in Zambia. This development, reported by Bloomberg on November 19, underscores the intense competition among global powers for Africa's vital mineral resources.
According to unofficial sources, Mitsui has offered approximately $2 billion for a 20% stake in the Sentinel and Kansanshi copper mines in Zambia. Last month, Saudi Arabia also showed interest in these assets, with Manara Minerals aiming to acquire between 15% and 20% stakes in the same mines, valued at between $1.5 billion and $2 billion. Robert Wilt, Vice President of Manara Minerals, confirmed that negotiations with First Quantum are ongoing but did not provide further details.
The Sentinel and Kansanshi mines, Zambia’s largest copper producers, are expected to produce at least 375,000 tonnes of copper in 2024. This competition comes at a time when analysts project a significant increase in global copper demand, driven by the energy transition and rapid technological advancements. JP Morgan has forecasted a potential deficit of 4 million tonnes of copper by 2030, while the International Energy Agency (IEA) estimates that current and planned mines will only meet 80% of global demand by that year.
In addition to copper, other critical minerals are also drawing attention from global powers. Japan, through its JOGMEC agency, has formed partnerships to gain access to rare earth minerals in Namibia and nickel in Tanzania. Saudi Arabia, meanwhile, has established a mining cooperation agreement with the Democratic Republic of the Congo, the world's leading cobalt producer.
Beyond Japan and Saudi Arabia, companies from South Korea and the United States have recently entered the African mining landscape, adding to the competition with established Chinese entities. If managed effectively, this influx of investment could create significant opportunities for African nations, particularly by enhancing local processing capabilities.
