Boliden is close to acquire two of Lundin’s European mines

Bloomberg has informed that Boliden is reportedly close to acquiring two of Lundin Mining Corp.’s European mines.

Deal in the Works

The two companies are in advanced discussions, with Lundin Mining’s shares up 3.7% in Toronto as of Thursday afternoon. If finalized, this acquisition would solidify Boliden’s position as one of Europe’s top zinc producers, ensuring a steady supply for its smelting operations in Scandinavia. However, spokespeople for both companies have declined to comment, noting that negotiations are ongoing with no guarantees of a deal.

Strategic Shifts

Lundin is selling its Zinkgruvan (Sweden) and Neves-Corvo (Portugal) operations to focus on expanding in Latin America. These two mines, which are Lundin’s oldest assets, accounted for about 20% of its revenue last year. The sale will help Lundin raise capital to invest in copper projects, particularly in South America. The company recently partnered with BHP Group to acquire Filo Corp. and develop the Josemaria project along the Argentina-Chile border.

Boliden’s Expansion Plans

This potential acquisition aligns with Boliden’s strategy to ramp up production. The company is currently expanding its Odda smelter in Norway by 75% to reach 350,000 tons annually and is restarting operations at its Tara mine, Europe’s largest zinc mine, after a temporary halt due to high costs.

Operational Highlights

• Zinkgruvan Mine (Sweden): Continuous operations since 1857; produced 76,349 tons of zinc in 2023.

• Neves-Corvo Mine (Portugal): Produced 108,812 tons of zinc and 33,823 tons of copper last year.