At a Glance
- First Quantum halts Zambian copper mine stake sale after $1 billion gold-streaming deal.
- Kansanshi mine expansion and new gold discovery boost Zambia’s copper, gold output outlook.
- First Quantum debt falls to $5.4 billion, shares jump 50% on recovery optimism.
First Quantum Minerals Ltd., a global copper company has halted plans to sell minority stakes in its Zambian copper mines after securing a $1 billion gold-streaming deal that strengthened its balance sheet. The Canadian miner, valued at more than $10 billion, had been exploring potential stake sales in Kansanshi and Sentinel after Panama shut down its flagship Cobre Panama mine in late 2023.
Chief Executive Officer Tristan Pascall said the August deal with Royal Gold Inc. eliminated the urgency to divest. “We’re open to partnerships, but we are not looking for a transaction in Zambia,” Pascall said in an interview.
Talks with Mitsui, Manara minerals off the table
The miner had held talks with Japan’s Mitsui & Co. and Saudi Arabia’s Manara Minerals Investment Co. over potential acquisitions of its Zambian assets, according to people familiar with the matter. Those discussions are now paused as First Quantum shifts focus to cash flow from existing operations.
The gold-streaming transaction, the largest globally in a decade, along with $1 billion in debt refinancing and copper prepayment agreements, has given First Quantum breathing room. RBC Capital Markets, which advised on the deal, called it a transformative move for the company’s financial stability.
Kansanshi expansion and new gold discovery
On August 19, First Quantum commissioned a $1.25 billion expansion at the Kansanshi copper mine, a project expected to deliver strong cash flow. During excavation for the expansion, workers uncovered a new gold deposit. The company has installed pilot plants to conduct bulk sampling, with Pascall saying a resource estimate could be ready by year-end.
“We are very excited by it,” he said. “This discovery adds to Zambia’s position as one of Africa’s top copper and gold producers.”
Zambia becomes core as Panama Mine stays shut
First Quantum Minerals, a top-10 global copper producer, anchors its growth in Zambia, where Kansanshi Copper-Gold Mine stands as Africa’s largest copper producer. Operating since 2005 in Solwezi, Kansanshi employs over 13,000 people and uses advanced technology for efficient extraction.
First Quantum holds an 80 percent stake in Kansanshi Mining PLC, with Zambian operations contributing over 90 percent of its copper output in 2023 after the Cobre Panama closure. The mines account for more than half of Zambia’s copper production, cementing the nation’s role as Africa’s second-largest copper producer and reinforcing First Quantum’s global mining leadership.
Net debt has now fallen to about $5.4 billion as at June 30, 2025, Pascall said, giving the miner more leverage in talks with Panama’s government about a potential restart of Cobre Panama. The company’s shares have climbed more than 50 percent since early April, driven by optimism around its financial recovery.
Panama’s government has allowed exports of stockpiled concentrates from Cobre Panama, but Pascall stressed that any restart timeline depends on President Jose Raul Mulino’s administration. “We can be constructive, we can be patient,” he said.
