Quantum Minerals to Sell Stake to China's Jiangxi Copper Corporation

A person familiar with the matter said that Canadian miner First Quantum Minerals is in talks to sell a stake in its Zambian copper mines to Chinese state-owned Jiangxi Copper Corp in order to strengthen the company's finances. Details have yet to be worked out, and it is unclear whether the latest discussions will result in a transaction, according to the source.

The talks began last month, after First Quantum was dealt a major setback in Panama, where it was ordered to close one of the world's largest copper mines, a move that debt rating agency Fitch warned could harm the company's borrowing capacity.

In Zambia, First Quantum wholly owns the Sentinel mine and 80 per cent of the Kansanshi mine, with the rest owned by the Zambian government. Jiangxi, First Quantum's top shareholder, could end up buying one of the two mines or a stake in one of them, the person added.

"The Chinese want the Zambian mines, so the company could sell one of the Zambian mines," the source said.

The individual declined to be identified because they were not authorised to speak to the media.

A spokesperson for First Quantum declined to comment on the talks, saying the company will provide an update later this month on its plan to meet its debt obligations. First Quantum's debt of $1.05 billion is set to mature in early 2025. Jiangxi Copper did not respond to Reuters' email inquiry.