Lundin Mining (OTC:LUNMF) has completed the sale of its two European mines to Swedish mining conglomerate Boliden AB (OTC:BLIDF) for up to $1.52 billion, dependent on future commodity prices.
The mines in question include Neves-Corvo and Zinkgruvan, operations with notable zinc production, which will enhance Boliden's status as one of the top zinc producers in the world.
"Neves-Corvo and Zinkgruvan have been foundational to Lundin Mining's growth into a global-scale, multi-asset base metals producer," said Jack Lundin, President and CEO of Lundin Mining.
The Neves-Corvo mine, located in Portugal's Iberian Pyrite Belt, has delivered 108,812 tons of zinc, 33,823 tons of copper, 6,500 tons of lead, and 1.9 million ounces of silver in 2023. Meanwhile, the Zinkgruvan mine in south-central Sweden produced 76,349 tons of zinc, 4,434 tons of copper, 26,284 tons of lead, and 2.3 million ounces of silver in the same year. Both mines are well-established operations with on-site processing facilities, making them highly attractive acquisitions for Boliden.
"Optimising these well-invested units as well as developing the feed mix to our existing smelters will create short- and long-term value for both our business areas. Going forward we will also have greater development opportunities for near-mine exploration in these attractive mining regions," said Boliden's President Mikael Staffas.
The transaction terms include contingent payments tied to future commodity prices. Up to $100 million is linked to copper and zinc prices at Neves-Corvo between 2025 and 2027, while up to $50 million is dependent on zinc prices at Zinkgruvan in 2025 and 2026. The deal is expected to close by mid-2025, subject to European authorities' regulatory and merger control approvals.
By selling these assets, the Lundin family has left their ancestral homeland of Sweden and Europe, looking toward South America as the primary focus of operation.
"The sale will further strengthen our balance sheet to support the Company's growing portfolio in South America and enable management to concentrate our focus in an area which will provide the greatest long-term value for our shareholders," Lundin noted.
Earlier this year, the company announced a joint venture with BHP, acquiring Filo Corp, owner of the Filo del Sol project. This lucrative copper-gold-silver deposit has a resource estimate of at least 2.2 billion pounds of copper, 2.86 million ounces of gold, and 133.33 million ounces of silver.
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