Saudi Manara Eyes Investment in Zambia's Copper Sector

2025-01-17 global

Lusaka, Thursday, 16 January 2025.
Saudi Arabia’s Manara Minerals seeks to invest in Zambia’s copper assets, highlighting potential foreign investment and its impact on global commodity markets from January 2025.

Strategic Negotiations Underway

Following a memorandum of understanding signed on January 14, 2025, Manara Minerals, a joint venture between Saudi Arabian Mining Company and the kingdom’s $925 billion Public Investment Fund, has engaged in talks with Zambian officials regarding critical minerals investments [1]. The company is particularly focused on acquiring copper assets, with discussions centered on potential minority stake acquisitions in existing operations [1][2]. This development aligns with Saudi Arabia’s broader strategy to diversify its economy beyond oil dependency [1].

First Quantum Deal in Focus

A key target for Manara appears to be First Quantum Minerals’ Zambian operations. The company is currently in advanced negotiations for a potential 20% stake in First Quantum’s Sentinel and Kansanshi mines, with the deal estimated at approximately $2 billion [2]. First Quantum’s CEO, Tristan Pascall, has confirmed that evaluating this minority stake sale is a priority for 2025 [2]. These assets are particularly significant as they represent First Quantum’s main source of production [2].

Zambia’s Mining Sector Transformation

The Zambian government is actively reshaping its mining sector policies, with Mines Minister Paul Kabuswe announcing that new mining projects will require up to 30% shareholding agreements [1]. This represents a significant shift from previous arrangements of 10-15% stakes [1]. The country has ambitious plans to boost its copper production to approximately 3 million metric tons within the decade, up from 698,000 tons in 2023 [1][5].

Investment Climate and Future Prospects

The timing of these negotiations is particularly significant given the broader mining sector outlook for 2025. Industry analysts project that copper demand will require an estimated $250 billion of investment over the next decade [7]. The sector shows strong optimism, with 84% of industry respondents expressing positive sentiment about the outlook despite market fragmentation [6]. A formal announcement regarding the potential mining deal between Zambia and Saudi Arabia is expected later this year [1], potentially marking a significant milestone in Zambia’s mining sector development.

Sources

Copper Investment