Bhp And Lundin Mining Finalise Key Copper Acquisitions

BHP and Lundin Mining have completed their joint $CAD4 billion ($4.48 billion) acquisition of Filo Corp., a Toronto Stock Exchange-listed mining company.

The acquisition’s completion means BHP and Lundin Mining now hold a 50 per cent stake in Filo Corp. and its Filo del Sol (FDS) copper project located in the Atacama region of Chile.

Before the acquisition was completed, Lundin Mining owned 100 per cent of the Josemaria copper project in the Vicuña district of Argentina. BHP has now acquired a 50 per cent interest in Josemaria from Lundin Mining.

The companies will now form a 50:50 joint venture (JV) encompassing the FDS and Josemaria, Vicuña Corp. It will act independently from BHP and Lundin Mining and will be responsible for the management of the projects.

“BHP is pleased to be partnering with Lundin Mining in the Vicuña joint venture, an exciting new copper growth opportunity for both companies,” BHP chief executive officer Mike Henry said.

“Leveraging the complementary capabilities of Lundin Mining and BHP, the development of Vicuña’s projects aims to deliver substantial value to shareholders, as well as to other stakeholders. The projects will be developed and will operate in line with international industry standards.

“BHP is one of the world’s leading producers of copper, a metal essential to global economic growth, the energy transition and to the rapidly growing demand for data centres to support the harnessing of artificial intelligence.”

The acquisition was first announced in July 2024. BHP paid $CAD2 billion ($2.24 billion) in cash for the Filo acquisition, or $CAD33 ($37) per Filo Corp. share, and Lundin Mining paid $CAD877.8 million ($983 million) in cash and 94.1 million Lundin Mining shares.

BHP paid Lundin Mining $US690 million ($1.1 billion) for its interest in Josemaria. 

BHP owns and operates many prominent copper mines around the world, chief among them the Escondida mine in Chile, which is the world’s largest producer of copper concentrates and cathodes.

BHP owns and operates many prominent copper mines around the world, chief among them the Escondida mine in Chile, which is the world’s largest producer of copper concentrates and cathodes.

Escondida helped increase BHP’s copper production by four per cent in the September 2024 quarter.

Adding FDS to its Chilean portfolio will allow BHP to grow its presence in the region and further increase its copper production, which it sees as a kingmaker commodity as nations turn to net-zero technology and a green economy.

Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.