First Quantum drops plan to sell stakes in Zambian copper mines after balance-sheet turnaround

First Quantum Minerals chief executive Tristan Pascall said on 25 August 2025 that the company had shelved a long-standing plan to sell minority stakes in its Zambian copper mines, Kansanshi and Sentinel, after alternative financing deals removed the pressure that had originally prompted the divestment plan. First Quantum, which fully owns Sentinel and holds 80% of Kansanshi, had been in discussions to sell a stake to Jiangxi Copper, one of its own shareholders with an 18.2% holding in the parent company, as a way to raise capital following the loss of its Cobre Panama mine in 2023.

Prepayments instead of equity dilution

Rather than sell equity, First Quantum instead expanded its commercial relationship with Jiangxi Copper: on 23 April 2025 the two companies agreed an additional $500m prepayment in exchange for delivering an extra 50,000 tonnes a year of Zambian copper anode to Jiangxi at market prices over three years. That deal followed First Quantum's earlier $1.0bn gold-streaming transaction with Royal Gold, announced in August 2025 and referenced to Kansanshi's copper production, which Pascall said had also helped change the calculus around whether a stake sale was still necessary.

Keeping full ownership of core assets

By raising capital through prepayments and streaming rather than selling equity, First Quantum keeps full economic ownership of two of its most important producing assets, preserving future upside as Kansanshi's S3 expansion ramps toward materially higher output. The decision also avoids ceding a permanent ownership stake to Jiangxi Copper, a step that would have been harder to reverse than the debt-like financing instruments the company chose instead.

What it means for Zambia

For Zambia, First Quantum's decision to retain full ownership of Kansanshi and Sentinel keeps the current, established ownership and management structure in place at two mines central to the country's copper output targets, rather than introducing a new part-owner mid-expansion. It also illustrates how, as copper and gold prices have strengthened through 2025 and 2026, previously cash-constrained miners have found it easier to fund growth through streaming and prepayment structures rather than through asset sales that permanently reduce their exposure to future commodity price gains.

Sources

• Bloomberg: First Quantum Drops Plan to Sell Stakes in Zambia Copper Mines, 25 Aug 2025
• African Mining Market: First Quantum abandons plans to sell stake in Zambian copper mine, 26 Aug 2025
• First Quantum Minerals: First Quantum Minerals Reports First Quarter 2025 Results, 23 Apr 2025