Mining giant BHP (ASX:BHP) is forming a 50:50 joint venture with Lundin Mining (TSX:LUN) after acquiring Filo Corp (TSX:FIL), which owns the Filo del Sol Copper Project in Argentina.
On 26 September 2024, Filo Corp shareholders’ approved the acquisition, which was C$4 billion ($4.47 billion) excluding the Filo shares already held by Lundin Mining and BHP.
BHP Canada’s share for the Filo acquisition was C$2 billion in cash at C$33 per Filo share, while Lundin Mining’s share was C$877.8 million in cash and 94.1 million shares.
BHP Canada also paid Lundin Mining US$690 million cash for a 50% joint venture in the Josemaria Project. As such, both companies have formed a Canadian-incorporated joint venture company Vicuña to hold the Filo del Sol Project, as well as the Josemaria Copper Project.
CEO Mike Henry says Vicuña is an exciting new copper growth opportunity for both companies.
“Leveraging the complementary capabilities of Lundin Mining and BHP, the development of Vicuña’s projects aims to deliver substantial value,” Henry says.
“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 joint venture is governed by a joint venture shareholder agreement between BHP Canada, a wholly owned subsidiary of Lundin Mining, and Vicuña Corp. Vicuña will be the operator and will be responsible for managing the projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Filo Corp
