PIF backed Manara Minerals eyes stakes in Zambian mining projects

Dubai: Manara Minerals is in advanced negotiations to acquire a 15 per cent to 20 per cent stake in First Quantum Minerals’ copper and nickel assets in Zambia.

Manara Minerals is a joint venture between Saudi Arabian Mining Co (Maaden) and the sovereign Public Investment Fund (PIF)

The stake could be valued between $1.5 billion (Dh5.5 billion) and $2 billion (Dh7.3 billion), the deal is anticipated to be finalised by the end of the year, as reported by Reuters.

First Quantum operates the Kansanshi and Sentinel copper mines, along with the Enterprise nickel mine in Zambia. These mines generated over $1 billion (Dh3.67 billion) in revenue for the company during the second quarter of this year.

First Quantum plans to invest $1.3 billion (Dh4.7 billion) in Kansanshi over the next five years as part of a $2 billion (Dh7.3 billion) initiative aimed at boosting copper production from 130,000 tonnes in 2023 to 277,000 tonnes annually by 2033.

In May, Manara Minerals successfully completed a $2.5 billion (Dh9.1 billion) deal to acquire a stake in a subsidiary of Brazilian mining giant Vale.

The company is also reportedly in discussions to purchase a 15 per cent stake in the $6.5 billion (Dh23.8 billion) Reko Diq mining project in Pakistan.