Saudi Arabia's Manara Minerals is nearing a deal to acquire a minority stake in the Zambian copper and nickel assets of Canadian miner First Quantum Minerals.
Reuters quoted three sources as saying Manara, a joint venture between Saudi Arabian mining corporation Ma'aden and its $925 billion Public Investment Fund, is in advanced discussions to purchase between 15% and 20% interest in the Zambian assets.
According to one of the sources, the stake might be valued at $1.5 billion to $2 billion.
According to a different source, First Quantum might complete the sale of an interest in the Zambian assets by the end of the year.
It is uncertain whether an agreement will be signed, as the negotiations are still in progress, they stated.
The proposed acquisition is under the spotlight since copper is a highly sought-after metal for the clean energy transition.
First Quantum disclosed earlier this year that it was in discussions with prospective investors to sell a portion of its stake in the Zambian mines.
Additionally, the company was considering the sale of its Spanish mine, Las Cruces, to reduce debt and raise capital following the Panamanian government's decision to shut down its flagship Cobre Panama mine.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
