It’s unclear how receptive BHP is to the proposal. The rich Lundin household, who personal about 15% of their eponymously named miner, have a 32% stake in Filo whereas BHP holds practically 6%, in line with information compiled by Bloomberg.
Lundin has pitched the concept of shopping for out different shareholders in Filo after which combining the goal’s Filo del Sol copper venture — positioned on the Argentina-Chile border — with Lundin’s neighboring Josemaria operation, the folks mentioned. Bringing the 2 property collectively would make it simpler for Lundin to finance their improvement whereas bringing BHP much-needed development in copper.
Talks are at a preliminary stage and there are not any ensures they’ll proceed with a bid, the folks mentioned. Representatives for BHP and Lundin declined to remark. Filo didn’t instantly reply to requests for remark.
Lundin is eager to develop the Josemaria venture in Argentina, an unlimited copper and gold deposit within the Andes, and has mentioned it’s wanting to herald a companion. The corporate is contemplating a possible sale of two European zinc mines because it appears to lift funds and focus extra on copper, Bloomberg reported final month.
The world’s greatest mining corporations are all searching for to develop in copper, in anticipation of rising costs as demand for clear energy and information facilities is forecast to outstrip provide in future years.
BHP made a blockbuster $49 billion bid for Anglo American Plc earlier this yr — primarily for its suite of South American copper mines — however was left pissed off when its goal turned down its provide.
(By Crystal Tse, Dinesh Nair and Thomas Biesheuvel)