First Quantum drops Zambian stake sale plan
First Quantum Minerals Ltd. has abandoned plans to sell minority stakes in its Zambian copper mines, following a $1 billion gold-streaming agreement that eased pressure on its balance sheet.
The Canadian miner had previously considered selling partial interests in the Kansanshi and Sentinel mines after being forced to close its flagship Cobre Panama operation in late 2023. However, chief executive officer Tristan Pascall said the recent deal with Royal Gold Inc., which involves selling a share of Kansanshi’s gold output, has removed the immediate need for such a divestment.
“While we remain open to partnerships, we’re not seeking a transaction in Zambia,” Pascall said.
First Quantum had reportedly held discussions with potential buyers, including Japanese trading house Mitsui & Co. and Saudi Arabia’s Manara Minerals Investment Co., over the sale of a minority stake in its Zambian assets.
The streaming agreement described by RBC Capital Markets as the largest of its kind globally in the past decade combined with $1 billion in debt refinancing and copper prepayment arrangements, has helped strengthen the company’s financial position.
Cash flow
Adding to the turnaround, First Quantum commissioned a $1.25 billion expansion at Kansanshi on August 19, which is expected to boost cash flow from Zambia. With Cobre Panama shuttered, Zambia accounted for more than 90% of First Quantum’s production in 2024, representing over half of the copper output in Africa’s second-largest producer. The company’s net debt has now dropped to about $4.5 billion, providing room to engage with Panama’s government on the possibility of restarting the mine.
Pascall noted that the government recently allowed exports of copper concentrate stockpiles from Panama but stressed that any decision on reopening the mine would rest with President Jose Raul Mulino.
“We can be constructive, we can be patient,” Pascall said. “The timetable will ultimately be determined by the government and the president.”
