Swedish mining giant Boliden AB is reportedly on the verge of acquiring two key European mines from Lundin Mining Corp. This deal, if inked, would solidify Boliden's position as a dominant force in European zinc production.

People familiar with the matter have indicated that the two companies are in advanced negotiations regarding the sale of Lundin's Zinkgruvan mine in Sweden and Neves-Corvo mine in Portugal. The potential acquisition aligns with Boliden's strategic objective of securing long-term, reliable supplies of zinc to feed its smelting operations in Scandinavia.

According to news reports doing the rounds on the internet, both companies have declined to comment and neither have officially confirmed the negotiations. It's important to note that the deal is still subject to ongoing discussions and there's no guarantee that a definitive agreement will be reached.

Lundin Mining initiated the sale of its European assets earlier this year as part of its broader strategy to shift its focus towards growth opportunities in Latin America. These mines, which have been operational for over a century, contributed approximately 20% of the company's total revenue in the previous year.

Shares of Lundin Mining surged 3.7% on the Toronto Stock Exchange on Thursday following news of the potential deal.

The proceeds from the potential sale would provide Lundin with the necessary funds to advance its ambitious copper projects in South America. Notably, the company recently partnered with mining behemoth BHP Group to acquire Filo Corp., which owns a significant copper project spanning the Argentina-Chile border. Additionally, BHP will join forces with Lundin in developing the neighboring Josemaria project.

In parallel, Boliden is actively expanding its production capabilities. The company is in the process of increasing the annual capacity of its Odda smelter in Norway to 350,000 tons of zinc, a 75% boost. Furthermore, Boliden is set to resume operations at the Tara mine, Europe's largest zinc mine, which had been temporarily suspended due to elevated costs.

Lundin's Zinkgruvan mine, a historic underground operation dating back to 1857, produced 76,349 tons of zinc in 2023. Similarly, the Neves-Corvo mine yielded 108,812 tons of zinc and 33,823 tons of copper during the same period.

As the deal progresses, industry observers will be closely monitoring its potential impact on the European mining landscape and the global zinc market.

About Lundin –

Lundin Mining is a global base metals company focused on copper, zinc, nickel, and other metals. With operations in Chile, the U.S., Portugal, and Sweden, the company emphasizes responsible mining, sustainability, and operational excellence, creating long-term value for shareholders while supporting local communities and minimizing environmental impact.