Canadian mining company First Quantum Minerals has agreed to sell its Çayeli copper-zinc mine in Türkiye to Cengiz Insaat, a subsidiary of one of Turkey’s largest industrial conglomerates, for $340 million in cash as the miner continues to streamline its asset portfolio and redirect capital toward its highest-priority operations.
Under the binding agreement, the sale includes an advance payment of $50 million, with the full transaction expected to close during the second or third quarter of this year. Chief Executive Tristan Pascall described the deal as consistent with the company’s “disciplined approach to portfolio management,” with proceeds intended to support strategic priorities including a potential restart of the Cobre Panama copper operation — one of the world’s largest copper mines, which was shut down in late 2023 following civil unrest in the Central American country.
Located on the Black Sea coast of northeastern Türkiye, the Çayeli mine has been in continuous operation since 1994, producing copper and zinc concentrates from a volcanic hosted massive sulphide deposit. Its reserve base is currently projected to support operations through to 2036.
The transaction marks the second asset disposal First Quantum has executed in three months, following the $190 million sale of the past-producing Cobre Las Cruces copper mine in Spain in December.
For the buyer, the acquisition represents a further aggressive expansion of its mining portfolio. Cengiz Holding last week completed its largest mining deal to date — the $1.5 billion purchase of the Copler gold mine in Türkiye from SSR Mining — making the Çayeli transaction the conglomerate’s second major mining acquisition within days.
Despite the strategic rationale for the sale, First Quantum’s shares initially rose on the news before reversing course, closing down 1.7% by midday at a market capitalisation of approximately C$27.5 billion ($20.2 billion). UBS analyst Myles Allsop nonetheless upgraded the stock to a Buy rating from Neutral, raising his price target to C$50 from C$38, signalling confidence in the company’s refocused strategy.
