Manara Minerals, a Saudi Arabian entity, is exploring investment opportunities in Zambia’s critical minerals sector, Mines Minister Paul Kabuswe revealed during a mining conference in Riyadh.
The discussions follow the signing of a memorandum of understanding (MoU) between Zambia and Saudi Arabia to collaborate on mineral exploration.
Kabuswe stated, “They [Manara] are interested, but we do not know which minerals yet.” An announcement on a potential deal is expected later this year.
As part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan to diversify Saudi Arabia’s economy away from oil, the kingdom is pursuing global investments in critical minerals such as copper and lithium.
Manara Minerals, a joint venture between the Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund, has been in talks to acquire a minority stake in the Zambian copper and nickel assets of First Quantum Minerals. In October, Reuters reported that the deal was nearing finalization.
First Quantum confirmed on Wednesday that it is evaluating the potential benefits of selling a minority stake in its Zambian assets, although Zambia’s government is not privy to the details of these discussions.
Zambia is pushing for greater equity in new mining ventures, targeting shareholdings of up to 30%, a significant shift from previous agreements where the government held only 10% to 15%. Kabuswe noted that while some investors have expressed reservations, the policy has not deterred overall interest.
The government is also engaged in talks with major mining companies, including Barrick Gold, Ivanhoe Mines, and Chinese investors, to advance new projects.
Zambia recently established a joint copper trading unit with Swiss-based commodities trader Mercuria. This initiative will manage copper sourced from mines where the government holds stakes.
Kabuswe emphasized that Zambia prefers receiving its earnings in metal form, which can be sold independently, rather than as cash dividends.
The country aims to increase its copper output to 3 million metric tons annually within the next decade. In 2023, production fell to 698,000 tons, a decline from 763,000 tons in 2022.
Zambia’s collaboration with Saudi Arabia and strategic partnerships with global mining firms reflect its commitment to revitalizing its mining sector.
With ambitious goals and revamped policies, the nation is positioning itself as a key player in the critical minerals market.
