Swedish mining giant Boliden AB is reportedly in advanced discussions to acquire Lundin Mining Corp.’s two European mining operations, according to sources familiar with the matter. The assets under negotiation include the Zinkgruvan mine in Sweden and the Neves-Corvo mine in Portugal.
Lundin’s shares rose 3.7% on Thursday on the Toronto Stock Exchange as of 3 PM, reflecting market optimism about the potential deal. If finalized, the acquisition would bolster Boliden’s standing as one of Europe’s leading zinc producers, ensuring a steady supply of raw materials for its expanding smelting operations in Scandinavia.
Lundin Mining, a Canadian firm, decided to put the two mines up for sale earlier this year to focus on developing copper projects in South America. These mines, among Lundin’s oldest assets, accounted for about 20% of its revenue last year. Lundin has been aggressively pursuing opportunities in Latin America, teaming up with BHP Group Ltd. in July to acquire Filo Corp., a company owning a major copper project along the Argentina-Chile border.
Meanwhile, Boliden is working to increase production capacity at its Odda smelter in Norway by 75%, aiming for 350,000 tons annually. The company is also resuming operations at the Tara mine, Europe’s largest zinc mine, which had been temporarily shut down due to high operational costs.
The Zinkgruvan mine, operational since 1857, produced 76,349 tons of zinc in 2022, while Neves-Corvo contributed 108,812 tons of zinc and 33,823 tons of copper. Both mines represent significant additions to Boliden’s portfolio.
Spokespeople for Boliden and Lundin declined to comment, and sources cautioned that negotiations are ongoing, with no guarantee of a final agreement.
