Battery BHP Critical Minerals Glencore Group of Seven Market Mining Nornickel Operational Partnership Prices Rio Tinto

Lundin Mining to Sell Neves-Corvo and Zinkgruvan Operations for $1.52 Billion

December 16, 2024

Lundin Mining Corporation has announced a definitive agreement to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB for up to $1.52 billion. The transaction includes an upfront cash payment of $1.37 billion and up to $150 million in contingent payments based on future copper and zinc prices. The deal does not require shareholder approval or financing conditions and is expected to close by mid-2025, pending regulatory approvals.

The upfront payment is based on a cash-free and debt-free enterprise value of $1.3 billion, as determined by financial statements as of August 31, 2024. Interest will accrue at 5% annually from that date until the transaction's completion. Contingent payments of up to $100 million for Neves-Corvo and $50 million for Zinkgruvan are linked to future copper and zinc price thresholds, calculated on incremental revenue over the next several years.

Proceeds from the sale will bolster Lundin Mining’s balance sheet and fund growth initiatives in the Vicuña District, aligning with the company’s strategy to concentrate on its copper-dominant portfolio. President and CEO Jack Lundin emphasized the significance of Neves-Corvo and Zinkgruvan in the company’s history, expressing confidence that Boliden’s stewardship would benefit employees and stakeholders. He also highlighted the divestiture’s timing as strategic for optimizing the company’s portfolio.

The transaction is subject to standard regulatory approvals, including EU Commission merger control, Swedish FDI Act clearance, and Portuguese Directorate-General for Energy and Geology consent. Boliden will acquire 100% of the shares of Somincor—Sociedade Mineira de Neves-Corvo, Zinkgruvan Mining Aktiebolag, and North Atlantic Natural Resources Aktiebolag as part of the deal.

    Subscribe to the most timely news about the metals market

    Metals Wire's weekly digest for mining and processing industry professionals, investors, analysts, journalists.
    By signing up you agree to the Metals Wire
    Privacy Statement