BHP and Lundin Mining have finalized the acquisition of Filo Corp. and established a 50/50 joint venture, Vicuña Corp., to advance the Filo del Sol (FDS) and Josemaria copper projects. This collaboration represents a significant investment in the copper-rich Vicuña district, spanning Argentina and Chile.
Transaction Highlights
- Filo Corp. Acquisition:
- Filo Corp., owner of the Filo del Sol project, was acquired for a total consideration of C$4.0 billion.
- BHP Canada contributed C$2.0 billion (US$1.4 billion) in cash at C$33.00 per share.
- Lundin Mining’s share included C$877.8 million in cash and 94.1 million Lundin Mining shares.
- Josemaria Project Integration:
- BHP Canada acquired a 50% interest in Josemaria for US$690 million.
- Both Filo del Sol and Josemaria projects were then transferred to the newly formed Vicuña Corp. joint venture.
- Governance Structure:
- Vicuña Corp. is an independently operated Canadian-incorporated entity responsible for managing the projects.
- Both BHP Canada and Lundin Mining hold equal voting rights as shareholders and board members.
Strategic Importance
Mike Henry, CEO of BHP, emphasized the partnership’s potential:
“BHP is excited to join forces with Lundin Mining to unlock the growth potential of the Vicuña projects. These developments will not only deliver significant shareholder value but also contribute to the global energy transition by increasing the supply of copper, a critical material for renewable energy technologies and digital infrastructure.”
This venture marks a strategic step forward in BHP’s ambition to secure a leading position in the global copper market, which is crucial for advancing clean energy solutions and artificial intelligence technologies.
Operational and Development Plans
- Operator: Vicuña Corp. will oversee the development and operation of the Filo del Sol and Josemaria projects, adhering to international industry standards.
- Project Scope:
- Filo del Sol is renowned for its high-grade copper-gold-silver deposit.
- Josemaria offers a complementary resource base, enhancing the overall potential of the Vicuña district.
Financial Summary
- Total BHP investment: US$2.0 billion.
- Lundin Mining’s investment: Combination of cash and equity contributions.
- The transaction enhances both companies’ exposure to copper, a metal poised for growing demand driven by the global push toward decarbonization and technological innovation.
This joint venture is expected to deliver transformative outcomes for both companies while contributing to sustainable economic development in the Vicuña district and beyond.
