https://www.engineeringnews.co.za

Lundin in talks with Japanese trading houses to develop Argentina mine - CEO

6th October 2023

By: Reuters

  

Font size: - +

TORONTO - Canadian-Swedish miner Lundin Mining is in talks with Japanese trading houses and large miners to offer a stake of between 40% and 50% in Argentina's Josemaria mine, incoming CEO Jack Lundin told Reuters in an interview on Thursday.

In his first interview since being named as CEO this week, Jack Lundin said the company is conducting risk analysis before finalising strategic partners to help develop the Josemaria copper-gold mine. He said an announcement is expected next year. Lundin starts his new role in January 2024.

The company has previously said it would cost about $3.1-billion to develop the mine.

"We would like to come to the market with a plan for executing the development of the project which will likely entail partnership in order to help us dilute risk and carry support with capital, technical and political support," Lundin said. Adding that the company is open to negotiations.

Copper miners have been under stress as a tepid demand in China and macro economic uncertainty has put the commodity price under pressure, with the industry anticipating possible production cuts. Analysts are expecting that the low price could force copper miners to cut costs and even consider M&A deals.

"We are for now comfortable with our liquidity position and would consider financing options for specific projects," Lundin said.

Analysts at RBC capital markets said in Q2 Lundin's debt increased by 47% from Q1 to C$415-million.

Lundin's shares were up 4% on the Toronto Stock Exchange on Thursday.

The company is also watching the downward trend in copper prices and anticipates that if the prices fall below $3.60 per pound it could force some miners to cut production. Though Lundin is not planning to halt its production "at the moment", Lundin said.

"We are looking at bringing down costs...and really trying to weather the storm that we are in."

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Monitor Distributors
Monitor Distributors

We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.086 1.074s - 140pq - 2rq
Subscribe Now