- Lundin Mining to sell Neves-Corvo (Portugal) and Zinkgruvan (Sweden) operations to Boliden AB for up to $1.52 billion
- Transaction includes $1.37 billion upfront and up to $150 million in contingent payments tied to commodity prices
- Proceeds to support growth plans in South America’s Vicuña district and strengthen Lundin’s balance sheet
Lundin Mining (TSX:LUN) has entered a definitive agreement to sell its Neves-Corvo and Zinkgruvan mining operations to Boliden AB for up to $1.52 billion. The sale comprises $1.37 billion in upfront cash and up to $150 million in contingent payments based on future commodity prices.
The transaction, expected to close in mid-2025 pending regulatory approvals, marks a strategic shift for Lundin as it redirects resources to its rapidly growing copper-focused portfolio in South America, particularly in the Vicuña District.
“Neves-Corvo and Zinkgruvan have been instrumental in establishing Lundin Mining as a global base metals producer,” Jack Lundin, Lundin Mining’s president and chief executive officer, said in a statement. “This sale strengthens our balance sheet and allows us to focus on South American opportunities, which provide the greatest long-term value for our shareholders.”
Key transaction details
- Upfront payment: $1.37 billion based on an enterprise value of $1.3 billion (cash-free, debt-free), with interest accruing at 5 per cent annually from August 31, 2024, until closing.
- Contingent payments: Up to $100 million tied to copper and zinc prices at Neves-Corvo from 2025-2027, and up to $50 million tied to zinc prices at Zinkgruvan from 2025-2026.
- Strategic fit for Boliden: Boliden’s expertise and resources are expected to optimize these long-life mining assets, benefitting local stakeholders and employees.
Neves-Corvo, known for its copper and zinc production, and Zinkgruvan, a key zinc and lead producer, have been cornerstones of Lundin’s portfolio. However, this divestment underscores the company’s ambition to emerge as a copper-dominant mining powerhouse, leveraging its South American assets.
With regulatory approvals from E.U., Swedish and Portuguese authorities required, the transaction is positioned to close without the need for shareholder approval, reinforcing its efficiency and strategic intent.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations and projects in Argentina, Brazil, Chile, Portugal, Sweden and the United States. The company primarily produces copper, zinc, gold and nickel, with a strong focus on sustainable mining practices.
Lundin Mining stock (TSX:LUN) is up by 0.69 per cent trading at C$13.84 per share as of 12:58 pm ET. The stock is up by 39.75 per cent year-over-year and 81.09 per cent since 2019.
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(Top photo of the Neves-Corvo mine in Portugal: Lundin Mining)