First Quantum Explores Stake Sale in Argentine Copper Mine

First Quantum is in talks to sell a minority stake in its massive Taca Taca copper project in Argentina. With potential bidders like Rio Tinto and Mitsubishi, this move could mitigate financial risks and boost recovery post-Cobre Panamá shutdown.

Representatives for First Quantum and Rio Tinto declined to comment on the early-stage discussions, and executives have not guaranteed a final agreement. First Quantum Minerals (TSX:FM,OTCPL:FQVLF) has opened talks to sell a minority stake in its colossal Taca Taca copper project in Argentina. Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), Mitsubishi (TSE:8058,OTCPL:MSBHF), and Mitsui & Co. (TSE:8031,OTCPL:MITSF).

Located 55 kilometers from the Chilean border, Taca Taca ranks among the world’s largest undeveloped copper deposits. First Quantum projects the site will require a US$4.2 billion initial capital injection to process 40 million tons of ore annually. The company plans a subsequent expansion to 60 million tons, pushing total capital spending to US$5.25 billion.

During its first decade, the mine will yield approximately 291,000 tons of copper annually across a 35-year lifespan. At peak capacity, Taca Taca will output more than 320,000 tons a year, representing roughly 1.5 percent of current global mine supply. The negotiations coincide with an aggressive push by Argentine President Javier Milei to attract foreign capital.

Milei recently introduced sweeping tax and customs incentives targeting the mining sector in a bid to elevate Argentina into a premier destination for copper developers. For First Quantum, diluting its ownership at Taca Taca serves two immediate purposes: mitigating the massive capital risk of a greenfield megaproject and accelerating its corporate financial recovery following the catastrophic, protest-driven shutdown of its Cobre Panamá mine in late 2023. The company already possesses a blueprint for sharing development risk with Rio Tinto.

In 2023, First Quantum acquired a majority interest in the La Granja copper project in Peru from the Anglo-Australian major. First Quantum has also spent the last months offloading peripheral assets to repair its balance sheet and concentrate capital on top-tier deposits. Last March, the company agreed to sell its Çayeli copper and zinc mine in Turkey to Cengiz Insaat for US$340 million in cash.

Cengiz provided a US$50 million advance payment upon signing, with the transaction slated to close in the second or third quarter of 2026. That Turkish exit followed the December 2025 divestment of the Cobre Las Cruces mine in Spain. Resource Capital Funds subsidiary Global Panduro acquired the Seville-area asset for a total of US$190 million in consideration.

Shares of First Quantum spiked as high as C$39.54 early Wednesday (July 15) following the reports, and have since settled at the C$38.24 level. Don’t forget to follow us @INN_Resource for real-time news updates! Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

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