Canada-headquartered Lundin Mining on Monday announced the sale of its Neves-Corvo mine, in Portugal, and Zinkgruvan mine, in Sweden, to miner Boliden for up to $1.52-billion.

The transaction comprises an upfront consideration of $1.37-billion and contingent payments that can reach up to $150-million.

“Neves-Corvo and Zinkgruvan have played a significant role in catalysing the company to become a multi-asset base metals producer of global scale. I want to thank the teams for their dedication and hard work over the years,” said Lundin Mining president and CEO Jack Lundin.

For Boliden, the transaction considerably strengthens its mine production, as well as internal zinc and copper concentrate supply. Following the transaction, zinc and copper concentrate production will increase from 35% to 70% of zinc smelting capacity and 30% to 40% of copper smelting capacity. The transaction will lead to a significant increase in production of metals in concentrate in business area mines, by 95% for zinc and 43% for copper, based on 2023 production figures.

President Mikael Staffas said the addition of two cash flow generative zinc and copper mines in Portugal and Sweden had a strong industrial logic, as well as a strategic fit.

“Optimising these well-invested units as well as developing the feed mix to our existing smelters will create short- and long-term value for both our Business Areas. Going forward we will also have greater development opportunities for near mine exploration in these attractive mining regions,” said Staffas.

The Neves-Corvo mine is an underground mine with on-site processing facilities, located about 200 km southeast of Lisbon, in the western part of the Iberian Pyrite Belt. In 2023, Neves-Corvo produced 108 812 t of zinc, 33 823 t of copper, 6 500 t of lead and 1.9-million ounces of silver.

Zinkgruvan is also an underground mine with on-site processing facilities, located about 200 km southwest of Stockholm. In 2023, the mine produced 76 349 t of zinc, 4 434 t of copper, 26 284 t of lead and 2.3-million ounces of silver.

The transaction is expected to complete in mid-2025, subject to regulatory approvals, including merger control filings and approvals and other customary closing conditions.