BHP and Lundin Mining Partner to Expand Copper Portfolio with Joint Acquisition
Diversified miner BHP, in collaboration with Lundin Mining, has announced a strategic move to enhance its copper portfolio by jointly acquiring an advanced-stage copper exploration project in South America.
This partnership will see the creation of a joint venture (JV) to develop a burgeoning copper district in the Vicuna belt, spanning Argentina and Chile.
Copper, a vital component in the energy transition, remains highly sought after by miners. BHP’s recent unsuccessful bid to acquire Anglo American underscored its strategic objective to increase its copper holdings.
Under the new agreement, BHP and Lundin Mining will jointly acquire Filo, the owner of the Filo del Sol (FDS) project, for C$4.1 billion, or C$33 per share.
Subsequently, the companies will form a JV, each contributing their 50% interests in the FDS and Josemaria projects. As part of the deal, BHP will purchase 50% of the Josemaria project from Lundin for $690 million.
BHP CEO Mike Henry stated that the transaction aligns with BHP’s strategy to acquire promising early-stage copper projects. “The proposed transaction builds on a multi-year relationship between BHP and the Lundin Group of companies, through which we have developed a strong understanding of the resource potential of the Vicuña district and the possible pathways for development of the Filo del Sol and Josemaria projects.”
Henry emphasized the Vicuña district’s potential to significantly contribute to Argentina’s economy for decades. Lundin Mining President and CEO Jack Lundin echoed this sentiment, highlighting the strategic acquisition’s role in unlocking the Vicuña district’s value.
“As we partner to acquire Filo del Sol, one of the world’s largest undeveloped copper/gold/silver deposits, we are very excited about the future of the company and our role in developing this region,” said Lundin.
“Combined with the Josemaria project, we are now positioned to create a multi-generational mining district with significant synergies and cost savings, potentially becoming one of the world’s largest of its kind.”
Lundin also emphasized the importance of the partnership with BHP, aiming to leverage complementary skills and experiences to achieve their near-term goal of becoming a top-tier copper producer.
The transaction is expected to close in 2025.
