Boliden acquires Lundin mines for $1.5B
Swedish mining conglomerate Boliden AB to acquire two large mining resources from Lundin Mining Corp. for up to $1.52 billion. These assets include Neves-Corvo Zinc, Copper and Silver Mine in Portugal and the Zinkgruvan Zinc and Lead Mine in Sweden.
Deal structure:
- Boliden will also pay cash at closing of $1.3 billion.
- Contingent Payments: Further payments up to $150m can also be made in other circumstances.
Asset Details: Neves-Corvo Mine (Portugal): For the fiscal year ending 2023, this mine was able to generate 108,812 tonnes of zinc and 33,823 tonnes of copper.
Zinkgruvan Mine (Sweden): This underground mine has been in operation since 1857 and produced about 76, 349 tons of Zinc in 2023.
Strategic implications:
This acquisition will also help Boliden to become one of the largest zinc producers in Europe thereby guaranteeing the continuity of its ore supply for the smelting factories based in Scandinavia.
Lundin Mining’s sale makes sense in its efforts to build up higher copper projects in SA, including partnerships with BHPP on the development of the Filo copper deposit on the Argentina-Chile border.
The transaction depends on regulatory approval and all the other standard closing contingencies.
