KEY POINTS
- Lundin Mining plans to sell its copper and zinc mines in Europe.
- The company is shifting focus to Latin American mining projects.
- Lundin hopes to complete the sale within a year.
Lundin Mining Corporation, a leading Canadian metals producer, is moving forward with plans to sell its European mining operations as it shifts its focus to projects in Latin America. CEO Jack Lundin announced that several potential buyers have shown interest in the company’s mines in Sweden and Portugal. These mines, which have been the backbone of Lundin’s European presence, are no longer central to the company’s strategy.
“We have many interested parties looking at our European assets,” said Lundin during an interview. “These assets have become non-core for us over time, so we’re exploring options to sell and generate more value.”
A strategic shift
The company’s two European mines—Zinkgruvan in Sweden and Neves-Corvo in Portugal—have been listed for sale as part of this strategic shift. These operations are Lundin’s oldest assets and contributed about 19% of its total revenue last year. However, as the company turns its attention toward developing larger projects in Latin America, particularly in Argentina, these older assets no longer align with its growth plans.
According to mining.com, Lundin recently teamed up with mining giant BHP Group to acquire Filo Corp., a move that highlights its expanding interests in Latin America. The purchase aims to boost copper mining projects in the region, which is becoming increasingly important due to the rising global demand for copper. The company’s new focus could potentially make Latin America its most significant operational hub in the coming years.
Swift timeline for the sale
Lundin is committed to wrapping up the sale of its European operations within the next year. “We don’t want to drag on the process because it’s distracting and time-consuming,” Lundin explained. “We’re aiming to complete the sales process within six to twelve months.”
The decision to sell its European mines marks a significant moment in Lundin’s history. With the demand for metals like copper growing worldwide, Lundin’s move toward Latin America seems well-timed. The company hopes that shedding its European assets will allow it to focus more on the fast-developing projects in the Americas, where the potential for growth is much higher.
