Lundin's controversial sale of European mines sparks outrage over copper ambition funding

In a significant strategic move aimed at bolstering its growth in South America, Lundin Mining Corp., headquartered in Vancouver, has announced the sale of two aging European mines to Swedish company Boliden AB. This sale, valued at up to US$1.52 billion, is part of Lundin’s effort to enhance its balance sheet and generate sufficient cash to pursue copper development projects in the Vicuña region, which spans Argentina and Chile. The two mines involved in this transaction are Zinkgruvan, located in Sweden, and Neves-Corvo in Portugal. Zinkgruvan has been operational since 1857, while Neves-Corvo started its operations in 1989. The sale structure involves an initial cash payment of $1.37 billion, with the potential for an additional $150 million contingent upon the market performance of copper and zinc over the next couple of years. This deal is subject to approval by several regulatory bodies, including the European Commission and local authorities in Sweden and Portugal. Furthermore, analysts predict that the transaction will eliminate Lundin’s net debt, thereby improving its financial situation and allowing for further investment in lucrative mining projects in South America. Lundin recently collaborated with BHP Group Ltd., the largest mining corporation in the world, to jointly make a significant acquisition and develop nearby projects, indicating a strong commitment to the region. Jack Lundin, the company’s new CEO, emphasized that this decision will enable the company to concentrate fully on South American operations, which he believes will yield long-term value for shareholders. He is following in the footsteps of his father, Lukas Lundin, who had a long tenure in mining leadership until his passing in 2022, and continuing the family tradition started by his grandfather Adolf Lundin over 50 years ago.