Mitsui & Co., a major Japanese trading house, has emerged as the highest bidder for a stake in First Quantum Minerals’ copper mines in Zambia, according to sources familiar with the matter. Mitsui’s offer surpasses a competing bid from Saudi Arabia’s state-backed Manara Minerals Investment Co., the sources said, speaking on condition of anonymity as the details are private.
Mitsui is reportedly looking to acquire around a 20% stake in First Quantum’s Sentinel and Kansanshi copper mines for approximately $2 billion. The Japanese firm is currently in discussions with First Quantum to negotiate the terms of the potential deal. However, there is no guarantee that the talks will result in an agreement, as First Quantum could still opt to sell to another buyer or forgo the transaction entirely, the sources noted.
Shares of First Quantum have surged by about 67% in Toronto this year, boosting its market capitalization to approximately C$15.1 billion ($10.8 billion). In 2023, Zambia accounted for about half of the company’s copper production and revenue, contributing more than $450 million in operating profit.
The interest in copper assets is growing due to rising demand for the metal, which is essential for electric vehicle production and renewable energy infrastructure. At the same time, there is a growing concern about the lack of new copper mines being developed, further driving the appeal of such investments.
While Mitsui declined to comment on the matter, representatives from First Quantum and Manara Minerals also refrained from providing any official statements.
