(Ecofin Agency) - Last month, Saudi Arabia expressed its interest in buying a minority stake in Canada's First Quantum's copper mines located in Zambia. Although no deal has been finalized, the Saudi firm Manara Minerals may be outbid by a Japanese company. 

Mitsui & Co. from Japan outbid Manara’s offer for shares in First Quantum's Zambian copper mines. Reported by Bloomberg on November 19, the news highlights the intense competition among major powers for Africa's vital mineral resources.

According to unofficial sources, Mitsui reportedly offered about $2 billion for a 20% stake in the Sentinel and Kansanshi copper mines. Last month, Reuters indicated that Saudi Arabia was also interested in these assets, aiming to acquire between 15% and 20% stakes in both mines, with Manara's desired stake valued at $1.5 to $2 billion. Robert Wilt, Vice President of Manara Minerals, confirmed that negotiations with First Quantum are ongoing but did not provide additional details.

Mitsui and Manara Minerals seek access to Zambia’s largest copper mines, projected to yield at least 375,000 tonnes of copper in 2024. 

Analysts predict that global demand for copper will exceed supply in the coming decade. JP Morgan forecasts a potential deficit of 4 million tonnes by 2030, while the International Energy Agency estimates that current and planned mines will only meet 80% of global demand by that year.

Copper is not the only essential metal spurring Japan and Saudi Arabia’s interest in Africa. Japan, via the JOGMEC agency, has formed partnerships to gain access to rare earth minerals in Namibia and nickel in Tanzania. Meanwhile, Saudi Arabia has established a mining cooperation agreement with the Democratic Republic of the Congo, which is the top cobalt producer globally.

Beside these countries, companies from South Korea and the USA have recently entered the African mining landscape, competing alongside their Chinese counterparts who are already well established. If managed effectively, this influx of investment could create significant opportunities for African countries rich in minerals, especially in terms of local processing capabilities. 

Emiliano Tossou