PIF-backed Manara Minerals is closing in on a USD 1.5-2 bn acquisition of a minority stake in First Quantum Minerals’ Zambian copper and nickel assets, Reuters reports, citing three sources it said are familiar with the matter. Manara — a JV between the Public Investment Fund (PIF) and mining giant Ma’aden — is reportedly looking to acquire a 15-20% stake in the mines.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

REFRESHER- Manara Minerals has been eyeing a stake in First Quantum’s Zambian assets since earlier this year, with an eye on copper mines Sentinel and Kansanshi. First Quantum, meanwhile, disclosed earlier this year that it was in discussions with potential investors to sell stakes in its Zambian operations while also looking to offload other assets to offset debts and compensate for the shutdown of other operations.

Manara emerged as a top contender for the sale due to the fact that its plans to acquire a minority stake fit well with First Quantum’s plan to retain majority ownership in its highly profitable Zambian mines.

Manara has been expanding its mining portfolio: Manara Minerals completed the acquisitionof a minority stake in Brazilian miner Vale Base Metals back in May. The transaction is worth an estimated USD 2.6 bn, based on a USD 26 bn enterprise value VBM had previously disclosed. The company also submitted an offer in August to acquire a 15% stake in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan.

Tags: