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(Ecofin Agency) – Saudi Arabia is set to enter Zambia’s copper sector through a partnership with First Quantum Minerals. In 2023, Saudi Arabia established a company focused on mining investments, particularly in critical metals like copper and lithium. The kingdom has already signed a mining cooperation agreement with the Democratic Republic of the Congo (DRC), the world’s second-largest copper producer.
First Quantum is in advanced discussions with Saudi company Manara Minerals to allow it to become a minority shareholder in its Zambian copper mines. According to Reuters, Manara plans to acquire a 15-20% stake in First Quantum’s operations, which include the Kansanshi and Sentinel mines. The stake could be valued between $1.5 billion and $2 billion.
Neither company has confirmed this information, yet. However, if an agreement is reached, it would further support Saudi Arabia’s ambitions to secure critical minerals, especially in Africa. Manara Minerals was created in 2023 as a joint venture between Saudi Arabia’s national mining company Ma’aden and its public investment fund.
At the Future Minerals Forum mining conference in January 2024, Riyadh signed memoranda of understanding with three African countries, including the Democratic Republic of Congo (DRC). The DRC produces 70% of the world’s cobalt and was the second-largest copper producer in 2023. It also has significant lithium reserves. Lithium and copper are key priorities for Manara Minerals’ investment plans.
As Africa’s second-largest copper producer, Zambia could benefit from Saudi investments to reach its goal of producing 3 million tonnes of copper annually by 2031. Manara’s investment comes as First Quantum plans to spend $2 billion to increase annual copper production at the Kansanshi mine from around 134,827 tonnes in 2023 to 277,000 tonnes by 2033. The Canadian company also wants to sell a minority stake in its mines to raise capital and reduce debt.
Emiliano Tossou
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