Canadian firm Lundin Mining on Monday announced it would buy a majority stake in the Caserones copper mine for $950-million, solidifying its position as a meaningful copper producer at a time when the world is shifting to a lower carbon future.
Lundin will buy a 51% stake from JX Nippon Mining & Metals for $800-million in cash and $150-million in a deferred cash consideration payable in instalments over six years.
Lundin will also have the right to acquire up to an additional 19% interest in Caserones for $350-million over five years, starting on the first anniversary of the closing date.
“Upon closing of the acquisition of Caserones, we add another long-life copper mine of material size and with significant growth potential to our portfolio, in a region in which we have considerable knowledge and experience. The Caserones team has achieved meaningful operational improvements in recent years, and we will work to unlock additional upside through our strong technical resources and existing presence in the region,” said CEO Peter Rockandel.
In 2022, the concentrator plant at Caserones produced 109 000 t of copper in concentrate. In addition, 15 100 t of copper cathodes and 3 100 t of molybdenum in concentrate were produced.
The mine operates at a C1 cash cost of $22.22/lb and an all-in sustaining cash cost of $2.54/lb. 