Lundin Mining Buys Chilean Copper Mine From Freeport-McMoRan

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Canada’s Lundin Mining Corp. has agreed to pay Freeport-McMoRan Inc. $1.8 billion in cash for an 80% stake in Chile’s Candelaria copper operations to expand into the world’s largest copper mining nation. Lundin will double its copper output with the acquisition.

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Lundin swill fund the deal with $1 billion of senior debt, the proceeds from the sale of $600 million of new shares and by selling 68% of its future gold and silver production from the new asset to Franco-Nevada Corp. for an upfront $648 million, the Deal Pipeline reported.

US copper producer grade 110 price saw the biggest decline of the day, dropping 2.1% to close at $3.71 per pound on Thursday, October 16. The price of US copper producer grade 122 weakened by 2.1%, settling at $3.71 per pound. The price of US copper producer grade 102 declined 2.0% to $3.90 per pound. After a 1.3% increase, the Japanese copper cash price finished the day at JPY 766,000 ($7,036) per metric ton.

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Chinese copper closed mixed on Thursday. The price of Chinese copper bar fell 1.0% to CNY 49,170 ($8,006) per metric ton. The Chinese copper cash price saw a 1.0% decline to CNY 49,370 ($8,038) per metric ton. The price of Chinese copper wire saw little movement at CNY 50,395 ($8,205) per metric ton. The price of Chinese bright copper scrap held steady at CNY 44,300 ($7,213) per metric ton.

On the LME, the 3-month price of copper inched up 0.3% to $6,745 per metric ton. Also on the LME, the cash price of primary copper saw little movement on Thursday at $6,781 per metric ton.

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