en.Wedoany.com Reported - First Quantum Minerals is negotiating the sale of a minority stake in its Taca Taca copper mine project in Argentina, as rival miners and strategic investors compete to increase their exposure to the metal. The project is one of the world's largest undeveloped copper mines, and the company also operates copper mines in Zambia and Panama.
According to sources familiar with the matter, potential buyers include the world's second-largest miner, Rio Tinto Group, as well as Japanese trading houses Mitsubishi Corp. and Mitsui & Co. The sources requested anonymity as the talks are private. Representatives of First Quantum, Rio Tinto, Mitsubishi Corp., and Mitsui & Co. declined to comment.
Major global miners are seeking to expand their copper operations, with prices of the metal, a key component in the energy transition, near historic highs. Forecasts of future supply shortages have triggered a wave of industry acquisition deals. The Taca Taca deposit, located near the Chilean border, could produce over 320,000 tonnes of copper annually at its peak, accounting for approximately 1.5% of current global mine supply.
First Quantum is regarded in the industry as a leading company in copper mine project development. However, its flagship Cobre Panama mine, which was shut down in late 2023 following massive protests over its operations, has continued to face challenges.
First Quantum and Rio Tinto already have a cooperative foundation. In 2023, First Quantum acquired a majority stake in Rio Tinto's La Granja copper project in Peru, with both parties planning to jointly develop the asset. Former Rio Tinto CEO Jakob Stausholm also visited First Quantum's copper mine in Panama.
One source indicated that the sale process is still in its early stages, and there is no guarantee a deal will ultimately be reached. Building a copper mine like Taca Taca requires billions of dollars in investment and several years of construction, and selling a minority stake is a common practice in the industry to share costs and risks.
BHP Group and Glencore Plc already have large copper projects in Argentina. As miners search for new deposits, Argentina is rapidly becoming one of the most attractive regions globally. President Javier Milei has promoted investment by amending Glacier protection regulations and introducing incentives involving tax, customs, and foreign exchange rules.
The Argentine government aims to position the country as a major global copper supplier to capitalize on demand growth from industrial uses such as electrification, but insufficient infrastructure development remains a constraint for mining projects.
