First Quantum in discussions over copper, nickel assets

First Quantum Minerals (TSX: FM) is currently in discussions with potential partners regarding its Zambian copper and nickel assets. CEO Tristan Pascall confirmed the report and said the firm eyes partnerships, particularly in Zambia.

Without providing details on the negotiations, The CEO, said there could be a potential sale that has attracted attention due to the growing demand for copper and nickel, which are critical for the global energy transition. Chinese companies, including Zijin Mining Group and Jiangxi Copper Co.—the latter being First Quantum’s second-largest shareholder—could also be interested in the assets.

Challenges

First Quantum’s Zambian operations, particularly the Kansanshi and Sentinel copper mines, are seen as attractive opportunities. A partial sale of these assets would help alleviate the company’s financial challenges, especially given the mounting debt it has incurred.

The debt situation intensified after the Panamanian government shut down First Quantum’s flagship Cobre Panama mine, halting operations and leaving 121,000 tonnes of copper concentrate stockpiled. The company is incurring significant costs—about $11 million to $13 million per month—to maintain the mine. First Quantum is seeking approval from Panama’s new government to resume exports and is awaiting a resolution expected in early 2025. However, without progress, the company may be forced to implement cost-cutting measures, including workforce reductions.