Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Lundin Mining Corp. has the type of assets that would be attractive to prospective buyers as the copper industry enters a period of consolidation, according to the Canadian firm’s top executive.
“People are looking at every company — it’s just natural,” chief executive officer Peter Rockandel said in an interview Monday, without commenting on whether his company would be targeted. “One of the key things we have is the majority of all of our assets, with the exception of one, are long life. And that’s what people usually want when they do an acquisition.”
Large miners are scouring for copper assets as demand for the wiring metal accelerates in the energy transition at a time when new deposits get trickier and pricier to develop. Glencore Plc has made an unsolicited $23 billion bid to buy Teck Resources Ltd., while BHP Group Ltd. and Rio Tinto Group are actively looking to grow their exposure. Gold majors including Newmont Corp. and Barrick Gold Corp. have indicated an interest in adding more copper to the mix.
Lundin is Canada’s third-biggest copper miner, trailing Teck and First Quantum Minerals Ltd., and below that there’s a large gap, Rockandel said. He said he expects one or two more big deals in the current phase.
Still, the company is pressing forward with its own expansions, recently agreeing to buy a majority stake in the Caserones mine in Chile for $950 million and undertaking engineering work on the Josemaria project just over the Argentine border in San Juan.
Lundin then has the option to take its 51% stake in Caserones to 70% after a year of the deal closing and is looking at underground expansion at its nearby Candelaria mine. The firm is waiting to see how a proposal to raise taxes in Chile pans out, with the government on the right path with recent concessions to the bill, Rockandel said.
The company is looking into synergy opportunities at Candelaria and Caserones but recognizes that similar arrangements with its project in Argentina would be more challenging given cross-border considerations, Rockandel said.
Lundin has been approached by both major miners and trading houses to discuss possible investments in the Josemaria project in Argentina. While there’s no urgency in those talks, Rockandel said one scenario would be a jointly owned asset such as Collahuasi or Antamina.
The company would consider a corporate tie-up if it added enough value, or another asset acquisition in the Americas or Europe, said Rockandel, who will be moving to Vancouver from Toronto as part of the relocation of Lundin’s head office.
(By James Attwood, with assistance from Jacob Lorinc)
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