First Quantum Minerals has agreed to sell its Çayeli copper-zinc mine in Türkiye to a company controlled by Cengiz Holding as part of the Canadian miner’s strategy to focus on core assets.
Under a binding agreement, Cengiz Insaat will acquire the underground mine for $340 million in cash, including an upfront payment of $50 million. The transaction is expected to strengthen First Quantum’s balance sheet as the company allocates capital toward key projects.
Chief executive Tristan Pascall said the divestment reflects the company’s disciplined portfolio management approach as it prioritizes strategic assets, including efforts to restart the Cobre Panama operation.
“For more than a decade, the performance of Çayeli within First Quantum has been underpinned by the dedication of its employees and a strong safety and operating culture,” Pascall said.
Cengiz Holding, one of Türkiye’s largest industrial conglomerates, has been rapidly expanding its mining portfolio. The group recently announced a $1.5 billion acquisition of the Copler gold mine from SSR Mining, marking its largest mining deal to date.
Located on the Black Sea coast in northeastern Türkiye, the Çayeli mine has been operating since 1994. The underground operation produces copper and zinc concentrates from a volcanic-hosted massive sulphide deposit and is expected to remain in production until around 2036.
The sale represents the second recent asset divestment by First Quantum. In December, the company sold the past-producing Cobre Las Cruces copper mine in Spain for $190 million.
Shares of First Quantum initially rose after the announcement but later reversed gains. By midday trading, the stock was down about 1.7%, giving the company a market capitalization of approximately C$27.5 billion ($20.2 billion).
Despite the decline, UBS analyst Myles Allsop upgraded the stock rating to “Buy” from “Neutral” and raised the price target to C$50 from C$38, citing improved financial flexibility and portfolio focus.
