---
title: "Rio Tinto, Saudi Arabia's Manara Emerge As Likely Bidders For First Quantum's Zambian Assets: Report"
description: "Rio Tinto and Manara Minerals Investment are reportedly interested in buying First Quantum Minerals' Zambian assets. Mitsui & Co. and Sumitomo Corp. are also considering bids. First Quantum's manageme"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/202283918.md"
published_at: "2024-04-18T15:39:31.000Z"
---

# Rio Tinto, Saudi Arabia's Manara Emerge As Likely Bidders For First Quantum's Zambian Assets: Report

> Rio Tinto and Manara Minerals Investment are reportedly interested in buying First Quantum Minerals' Zambian assets. Mitsui & Co. and Sumitomo Corp. are also considering bids. First Quantum's management has been working on restructuring and asset sales, raising substantial capital. Zambia's mining sector faces challenges in energy supply and declining ore grades. Efficient mineral mapping systems are crucial for sustainability. Zambia aims to increase copper production to 1 million tons by 2026.

**Rio Tinto** (NYSE:RIO) and Saudi Arabia’s **Manara Minerals Investment** are reportedly interested in buying **First Quantum Minerals**‘ (OTCPK: FQVLF) Zambian assets.

**What Happened**: According to Bloomberg News, potential buyers are circling First Quantum-owned assets.

In addition to Rio Tinto and Manara, Japanese trading houses **Mitsui & Co.** and **Sumitomo Corp.** are considering bids.

The Sentinel and Kansanshi mines are estimated at $6 billion.

Zambia accounted for about half of First Quantum's copper output and revenue last year, delivering more than $450 million in operating profit. 

*See Also: New Canadian Budget Deemed Mixed Bag For Mining Sector*

**Why It Matters**: First Quantum’s management has been working on a restructuring, including cost-cutting and asset sales.

The company has raised substantial capital, including $1 billion from stock sales and $1.6 billion from note offerings.

The proceeds come as the company faces a shutdown of its flagship **Cobre Panama** mine. The mine could come back online depending on how the Panamanian elections turn out in May,

Meanwhile, Zambia’s mining sector faces challenges in energy supply. The nation is heavily reliant on hydroelectric power. Ongoing droughts have led to rolling blackouts, further complicating mining operations.

Additionally, declining ore grades pose a significant concern for miners in Zambia, affecting major operations like Kansanshi and **Jinchuan Group's** (OTCPK: JGRRF) **Chibuluma**.

Efficient mineral mapping systems are crucial to addressing this issue and ensuring the industry’s sustainability.

Fiscal policies, especially tax regimes, also contribute to challenges. Zambia set ambitious plans for copper production. Copper is a crucial component in electric vehicles and renewable energy infrastructure.

Finance minister **Situmbeko Muskotwane** expects copper production to reach 1 million tons by 2026.

*Benzinga Mining is the bridge between mining companies and retail investors. Reach out to licensing@benzinga.com to get started!*

*See Also: Rio Tinto’s Next Chief Commercial Officer Says Building Mines Is Better Than Buying: Here’s How Long It Takes*

*Image: Shutterstock*

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
