First Quantum considers sale of stake in Argentina’s Taca Taca project
First Quantum Minerals is reportedly in discussions to divest a minority stake in its Taca Taca copper project in Argentina, reported Bloomberg, citing sources.
The move comes as international miners and strategic investors seek greater exposure to the copper industry.
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Potential buyers are said to include Rio Tinto Group, along with Japanese trading companies Mitsubishi and Mitsui & Co.
The Taca Taca deposit is located near Argentina’s border with Chile.
At full production, it could deliver more than 320,000 tonnes per annum (tpa) of copper, accounting for around 1.5% of global copper mine supply.
The process to sell a minority stake is still in the early stages and there is no certainty a deal will be completed, according to the sources.
Representatives from First Quantum, Rio Tinto, Mitsubishi and Mitsui declined to comment on the development.
Larger mining companies including BHP Group and Glencore already hold substantial copper projects in Argentina, where the easing of government restrictions and new investment incentives have increased foreign interest.
First Quantum operates copper mines in Zambia and Panama, although its Panamanian site was closed in late 2023 following protests.
The company has a previous partnership with Rio Tinto following its acquisition of a majority stake in the La Granja copper project in Peru in 2023.
Minority stake sales, common in capital-intensive mining projects, allow companies to share costs and risks associated with large developments such as Taca Taca.
Argentina’s Government aims to establish the country as a key copper producer to meet growing demand from electrification and industrial sectors.
However, under-developed infrastructure continues to present challenges for advancing mining projects.
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