Lundin weighs strategic partner for copper project in Argentina
Lundin Mining Corp is in talks with prospective partners for a copper deposit in Argentina as the industry battles to meet demand for the wiring metal in the shift away from fossil fuels.
Lundin Mining Corp is in talks with prospective partners for a copper deposit in Argentina as the industry battles to meet demand for the wiring metal in the shift away from fossil fuels.
As it seeks financing for the Josemaría project in San Juan Province, Lundin could sell a majority stake to a senior mining company or a minority stake to a Japanese trading house, Chief Executive Officer Peter Rockandel said in an interview Tuesday. The Canadian firm is also discussing a streaming deal similar to those at other Lundin mines in South America, he said.
If Lundin strikes a deal with another mining company, “it’s probably a higher likelihood that they would want to be in a controlling position,” Rockandel said earlier Tuesday on a conference call convened to discuss an acquisition in Chile.
Large mining companies are scouring for copper assets as demand for so-called battery metals accelerates in the clean energy transition. BHP Group, Río Tinto Group and Glencore Plc are actively looking to grow their copper exposure, while gold majors like Barrick Gold Corp have indicated an interest in adding more copper to the mix.
Lundin’s US$950-million purchase of a majority stake in a Chilean copper mine gives the company more time to decide how to move forward on Josemaría, Rockandel said in the interview.
“People will appreciate that this acquisition does immediately enhance our free-cash flow, which will be beneficial to us long term,” he said. “This will at least afford us the time to further the studies at Josemaría and make the appropriate decision at the appropriate time.”
Lundin acquired Josemaría for US$483 million in 2021 and projects an annual average output of 130,000 metric tons over the project’s 19-year mine life. It’s expected to start operating in 2026.
Rockandel did not specify a time-line for a financing deal.
related news
-
Nation grinds to halt on second general strike of Milei Presidency
-
Milei faces second major strike as Argentina resists austerity
-
Industrial output, construction plunge amid recession
-
City monthly inflation rate drops to single-digit in boost for government
-
Government gears up for ‘omnibus’ Senate showdown
-
Power producers seek better terms for US$2-billion Argentina debt
-
Goldman, Stone Harbor wind back Argentina bets after bond rally
-
Milei government hikes taxes on dividends going abroad
-
10,000-peso banknote enters into circulation
-
Protesters march on presidential residence to demand food aid