Boliden, which won the race against three Australian miners, hopes to complete the transaction by the middle of next year, but the operation is still subject to authorisation from several entities, including the European Commission and the Portuguese Government, which must give the green light to change the concession contract for the Neves-Corvo mine.

To finance the operation, the Swedish mining company secured a bridge loan with BNP Paribas, RBC Capital Markets and SEB, according to a report by ECO.

However, Boliden intends to refinance this bridging loan through medium and long-term debt and also through the issuance of shares, aiming for a capital increase of around 600 million euros (around half of the bank loan) to be carried out over the course of the first half of next year, depending on market conditions.

In addition to the 1.3 billion dollars in upfront cash, the Swedish mining company will pay an additional amount that could reach 150 million and whose payments are dependent on the evolution of zinc and copper prices over the next three years (with regard to Neves-Corvo mine) and the level of production over the next two years at the Swedish mine.

According to Boliden, the Neves-Corvo and Zinkgruvan mines will contribute around US$300 million to US$350 million in operating results (EBITDA) per year over the next five years.

In the case of the Portuguese mine, which has been owned by Lunding since 2006, it has five large deposits in production: Neves, Corvo, Graça, Zambujal and Lombador.

In 2023, the revenue of Somincor (which operates the mine) fell compared to the previous year, to €393 million, operating profit (EBITDA) of €83 million and profits, falling, of around €1.5 million euros (13 million in 2022).

The Portuguese Government has already said that it is monitoring the process of selling the mines, taking into account the “social and economic relevance” of Somincor for the workers, the region and the country”, guaranteeing that “it will exercise its powers in guaranteeing full respect for current legal and labour standards”.

The Canadians at Lundin put the two mines in Europe up for sale at the beginning of the year at a time when they turned their attention to the South American market. In the summer, it announced a partnership with the giant BHP to move towards the purchase of Filo for around three billion dollars, and it is planned to create a joint venture to explore copper projects in Argentina.