Swedish mining giant Boliden is set to acquire the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden from Lundin Mining in a deal valued at $1.3 billion upfront, with potential contingent payments of up to $150 million.
This acquisition is expected to nearly double Boliden’s zinc concentrate output and increase its copper concentrate production by 43%, significantly bolstering its resource portfolio. The move aligns with Boliden’s strategic goal to enhance its smelting capacity and secure a stable supply of mined ores amidst intensifying global competition.
According to Boliden CEO Mikael Staffas, the deal represents both “industrial logic and strategic fit,” with the acquired mines projected to contribute between $300 million and $350 million annually in earnings over the next five years. Boliden plans to finance the upfront payment through a bridge loan, half of which will be refinanced via a share issue and the remainder through medium- and long-term debt instruments.
For Lundin Mining, the sale reflects a pivot in focus toward South America. Earlier this year, the company announced a joint venture with BHP to acquire Filo Corp, which owns the Filo del Sol project in Chile. This deposit boasts estimated resources of 2.2 billion pounds of copper, 2.86 million ounces of gold, and 133.33 million ounces of silver. The joint venture also acquired the Josemaría copper-gold-silver project in Argentina.
The Neves-Corvo mine, located in Portugal’s Iberian Pyrite Belt, produced 108,812 tonnes of zinc, 33,823 tonnes of copper, 6,500 tonnes of lead, and 1.9 million ounces of silver in 2023. Meanwhile, the Zinkgruvan mine in Sweden yielded 76,349 tonnes of zinc, 4,434 tonnes of copper, 26,284 tonnes of lead, and 2.3 million ounces of silver last year.
The transaction, which is subject to regulatory approvals, is expected to be finalized by mid-2025.
