Lundin Mining Corp. has reportedly approached BHP Group with a proposal to jointly bid for copper miner Filo Corp. in a move that could potentially solve fundraising needs for a neighboring project it aims to develop.
According to sources familiar with the matter, Lundin initiated discussions with BHP regarding a possible collaboration to acquire Filo. The news caused a surge in Filo’s stock price, with shares jumping as much as 12% before settling at an 8% increase in Toronto trading, giving the company a market value of approximately C$3.7 billion.
The wealthy Lundin family, major stakeholders in both their namesake company and Filo, are said to be considering a buyout of other Filo shareholders. The plan involves merging Filo’s Filo del Sol copper project, situated on the Argentina-Chile border, with Lundin’s Josemaria operation. This strategic move would facilitate the financing of both projects and provide BHP with a significant growth opportunity in the copper sector.
While talks are still in the early stages, there is no guarantee of a concrete bid materializing. BHP and Lundin representatives have chosen not to comment on the matter, and Filo has yet to respond to requests for clarification.
The global mining industry is witnessing a surge in interest in copper, driven by the rising demand for clean energy and data infrastructure. This potential partnership between Lundin Mining Corp. and BHP Group underscores the competitive landscape within the sector, as companies vie for lucrative opportunities in the copper market.
