Canadian miner First Quantum Minerals聽(TSX: FM), which is reeling from the forced closure of its flagship copper mine in Panama, is said to be in talks to sell a stake in its Zambian operations to help shore its finances.
A person familiar with the matter told Reuters on Friday that Chinese state-owned Jiangxi Copper Corporation has already approached First Quantum on the matter, but that no agreement has been reached so far.
The Vancouver-based miner is the sole owner of the Sentinel copper mine and has a 80% stake in the Kansanshi mine, both in Zambia.
Jiangxi, First Quantum鈥檚 top shareholder,聽is said to be evaluating the acquisition of one of the two mines or a stake in one of them, according to the report.
First Quantum鈥檚 presence in Zambia, Africa鈥檚 second-largest copper producer, also includes the Fishtie聽copper project, near the border with the Democratic Republic of Congo.
The companies, which have been exploring the asset聽since 2012, recently announced it would speed up development with the goal of beginning production in 2026.
The news adds to several other rumours about First Quantum鈥檚 future, which include an alleged takeover in the making by fellow Canadian miner Barrick Gold (TSX: ABX), (NYSE: GOLD).
The gold giant has been expanding into copper as of late as it aims to double production of the metal聽to 1 billion pounds by 2031. It has already committed $2 billion to the development of the Lumwana super pit expansion in Zambia, and has a stake in the Reko Diq mine in Pakistan, expected to be one of world鈥檚 10 largest when it reaches production in 2028.
First Quantum said it plans to provide an update on the company鈥檚 plan to meet its debt obligations by the end of January.