...the market does not like this BHP acquisition, even as BHP is hell bent on increasing its copper exposure.
...the timing might be questionable. BHP buys copper miner Filo
BHP and Lundin Mining have agreed to jointly acquire Toronto listed copper miner Filo Corp.
BHP’s total cash payment for the proposed transaction is expected to be $US2.1 billion ($3.2 billion).
BHP and Lundin Mining have also agreed to form a 50/50 joint venture to hold the Filo del Sol copper project and Josemaria project located in the Vicuña district of Argentina and Chile.
Lundin Mining owns 100 per cent of the Josemaria project.
“The joint venture will create a long-term partnership between BHP and Lundin Mining to jointly develop an emerging copper district with world-class potential,” BHP said in an announcement.
“This transaction aligns with BHP’s strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value,” BHP chief executive Mike Henry said.
“The joint venture with Lundin Mining will advance the development of the Vicuña district, which offers the potential to become a major contributor to the economy of Argentina for decades to come. At the same time, by partnering with Lundin Mining, BHP is continuing to invest in the growth of a robust mining sector in Canada,” Henry said.
