Mitsui said to be highest bidder for First Quantum's stake in Zambia mines
Japanese trading house Mitsui & Co. has emerged as the highest bidder for a stake in First Quantum Minerals’ Zambian copper mines, according to people familiar with the matter.
Mitsui submitted an offer that’s higher than a rival proposal from Saudi Arabia’s state-backed Manara Minerals Investment Co, the people said, asking not to be identified because the information is private. The Japanese company is considering buying a roughly 20% interest in First Quantum’s Sentinel and Kansanshi mines for about $2-billion, according to the people.
Tokyo-based Mitsui is now seeking to negotiate terms of a deal with First Quantum, according to the people. There’s no certainty the deliberations will lead to a transaction, and First Quantum could sell a stake to another party or decide against pursuing a deal, the people said.
Shares of First Quantum have gained about 67% in Toronto trading this year, giving it a market value of about C$15.1-billion ($10.8-billion). Zambia accounted for about half of First Quantum’s copper output and revenue last year and delivered more than $450-million in operating profit.
A spokesperson for Mitsui didn’t immediately respond to queries, while representatives for First Quantum and Manara declined to comment.
Copper mines are attracting interest from a range of investors because demand for the metal is expected to soar in coming years. Copper is crucial for the production of electric vehicles and renewable energy infrastructure, while there is a lack of new mines being built.
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