Cengiz Holding to Acquire Çayeli Mine for 340 Million Dollars

First Quantum Minerals has officially entered into a binding agreement to sell its Çayeli copper and zinc mine in Rize, Türkiye, to Cengiz İnşaat, a subsidiary of the prominent Turkish conglomerate Cengiz Holding. The cash transaction, valued at $340 million (approximately 15 billion TL), marks a significant consolidation of domestic mining assets by one of Türkiye’s industrial giants.

Transaction Details

• Purchase Price: $340 million in cash.

• Advance Payment: Cengiz has already provided a $50 million upfront payment to be credited upon closing.

• Timeline: The deal is expected to finalize in the second or third quarter of 2026, pending customary regulatory approvals.

• Advisors: BMO Capital Markets served as the financial advisor, with Simmons & Simmons providing legal counsel to First Quantum.

Legacy and Future of the Çayeli Mine

Located on the Black Sea coast in northeastern Türkiye, the Çayeli mine has been a cornerstone of the region’s industrial output since it began production in 1994.

• Current Operations: The mine utilizes conventional underground bulk-mining methods to produce copper and zinc concentrates.

• Extended Lifespan: While the mine is a mature asset, the identification of the “South Orebody” deposit in 2025 successfully extended its projected operational life through 2036.

• Transition: First Quantum CEO Tristan Pascall praised the mine’s “strong safety and operating culture,” noting that the sale allows the Canadian firm to focus on its “core strategic priorities,” such as the restart of the Cobre Panama operation.

Cengiz Holding’s Aggressive Expansion

This acquisition is part of a massive spree by Cengiz Holding to dominate the Turkish mining sector. This deal follows the group’s staggering $1.5 billion acquisition of the Çöpler Gold Mine from SSR Mining just last week. By acquiring Çayeli, Cengiz further secures its grip on strategic metal production in the Black Sea region, leveraging its existing infrastructure and local expertise.

First Quantum’s Deleveraging Strategy

For First Quantum, the divestment is the second major asset sale in three months, following the $190 million sale of the Cobre Las Cruces mine in Spain in December 2025. Facing balance-sheet pressures and the high costs of maintaining flagship operations elsewhere, the company is systematically “pruning” its non-core international assets to defend its larger copper projects.