By:Reuters

The stake could be worth between US$1.5 billion and US$2 billion, one of the sources added.

First Quantum's sale of a stake in the Zambian assets could be concluded by year-end, the sources said. There is no certainty that a deal will be signed as the negotiations are ongoing, they added.

The potential deal is in the spotlight as copper is a much sought-after element for the clean energy transition due to its uses in the manufacture of electric cars and data centers powering artificial intelligence.

First Quantum earlier this year said it was in talks with potential investors to sell a partial stake in the Zambian mines, while also exploring the sale of its Spanish mine Las Cruces to raise capital and cut debt after the Panama government ordered the shutdown of its flagship Cobre Panama mine.

Manara has emerged as a front runner for the purchase as the Saudi firm's strategy to acquire a minority interest fits with First Quantum's aim to retain a majority stake in the mines, said the sources.

First Quantum owns the Kansanshi and Sentinel copper mines in Zambia, which have become key to future output after Cobre Panama's shutdown. First Quantum also owns the Enterprise nickel mine in the country.

"This is not a surprise - First Quantum has disclosed exploring a sale to shore up its balance sheet and the Saudis have been increasingly active in acquiring mining stakes," Citigroup analysts said.

The potential deal is in the spotlight as copper is a much sought-after element for the clean energy transition due to its uses in the manufacture of electric cars and data centers powering artificial intelligence.

First Quantum earlier this year said it was in talks with potential investors to sell a partial stake in the Zambian mines, while also exploring the sale of its Spanish mine Las Cruces to raise capital and cut debt after the Panama government ordered the shutdown of its flagship Cobre Panama mine.

Manara has emerged as a front runner for the purchase as the Saudi firm's strategy to acquire a minority interest fits with First Quantum's aim to retain a majority stake in the mines, said the sources.

First Quantum owns the Kansanshi and Sentinel copper mines in Zambia, which have become key to future output after Cobre Panama's shutdown. First Quantum also owns the Enterprise nickel mine in the country.

"This is not a surprise - First Quantum has disclosed exploring a sale to shore up its balance sheet and the Saudis have been increasingly active in acquiring mining stakes," Citigroup analysts said.

The firm is also in talks with the Pakistan government to be part of the Reko Diq copper mine currently under development, which is owned by Barrick Gold, Pakistan state enterprises and the provincial government of Balochistan.

An anticipated rally in the price of copper, spurred by a widening supply gap, is expected to continue to support the metal above US$10,000 per ton by the end of 2025, according to Bank of America.