https://www.miningweekly.com

Lundin weighs strategic partner for copper project in Argentina

29th March 2023

By: Bloomberg

  

Font size: - +

Lundin Mining 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 Josemaria 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, CEO 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, Rio Tinto Group and Glencore  are actively looking to grow their copper exposure, while gold majors like Barrick Gold have indicated an interest in adding more copper to the mix.

Lundin’s $950-million purchase of a majority stake in a Chilean copper mine gives the company more time to decide how to move forward on Josemaria, 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 Josemaria and make the appropriate decision at the appropriate time.”

Lundin acquired Josemaria for $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.

Edited by Bloomberg

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Alcohol Breathalysers
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.076 0.1s - 128pq - 2rq
Subscribe Now