Canadians from Lundin have already chosen the candidates to present firm proposals for Somincor, that operates the Neves-Corvo mine, Alentejo. Business could reach billions.
The Canadians at Lundin Mining have already selected the short list of candidates for present binding proposals by Somincor, company that operates the Neves-Corvo mine. The process is being conducted directly from Toronto and Vancouver, pelo Bank of Montreal (BMO) and a team from Lundin Mining, in absolute secrecy, but it is already known that foreign competitors dominate the passage to the second phase of negotiations — the Portuguese Almina presented a proposal, but it was not possible to determine whether it passed — for an operation that could be worth one billion euros.
A Lundin Mining, refer, put two assets up for sale: Beyond Somincor, also an operation in Sweden, and the competition accepted proposals for both operations or just one of them. Jack Lundin, son of the company founder, Lukas Henrik Lundin (who died in 2022), assured the Bloomberg agency, months ago, that the company did not need to sell assets to finance investments in Argentina and Chile, in copper mines, but this contest really went ahead, as revealed by ECO. And without information about the conditions that led to the selection of a ‘short-list’, market sources admit that the proposals for the two mines will have been privileged, and it is known that Almina presented a non-binding offer only for the Neves-Corvo mines.
O Bank of Montreal (BMO), who is conducting the operation, In recent days, the candidates have been informed about who made it to the next stage and who fell by the wayside.. The non-binding offer delivery phase took place in recent weeks and attracted around two dozen interested parties, with the non-binding proposals that, according to market sources, could have reached one billion euros (equity). But the same sources point out that, general rule, binding proposals must be of lower value. Now the process of due diligence, not just financial, but also operational. And one of the key questions is knowing the useful life span of Neves-Corvo for the extraction of copper and zinc.
Contacted by ECO, a Somincor – which has already confirmed that it is on the market, after the news released first-hand by ECO — it only says that “it will not comment on the ongoing process at this stageâ€.
Last week, a Lundin announced a partnership agreement with the giant BHP to move towards the purchase of Filo for around three billion dollars, it is planned to create a joint venture to explore copper projects in Argentina.
Neves-Corvo is the largest mine in Portugal, produces copper and zinc. It has five large deposits in production (Neves, Corvo, Grace, Zambujal and Lombador). In 2023, Somincor's turnover showed a drop compared to the previous year, to 393 million, an operational result (EBITDA) of 83 millions and profits, falling, of about 1,5 million (13 million in 2022).
According to official company information, ore processing in Neves-Corvo is done through two washing plants. Lavaria do Cobre processes approximately per year 2,6 million tons of copper ore. The Zinc Lavaria, that processes zinc or lead ore, has the capacity to treat approximately 2,5 million tons per year.
News: Lidador News/Eco.Sapo
