BHP and Lundin Mining’s Strategic Copper Partnership in the Vicuña District

About BHP Group Limited

BHP Group Limited (ASX: BHP), headquartered in Melbourne, is a global leader in mining, operating in over 90 locations worldwide. Founded in 1885 as the Broken Hill Proprietary Company, it merged with Billiton plc in 2001 to become BHP Billiton, later rebranding to BHP. As of 2025, it is the world’s largest mining company by market capitalisation and ranks third by revenue. BHP focuses on iron ore and metallurgical coal for steel, copper for renewable energy, and potash for sustainable agriculture. These commodities align with global megatrends, supporting infrastructure development, the energy transition, and sustainable farming practices. BHP’s products are sold globally.

Strategic Partnership and Expansion in Copper

BHP and Lundin Mining have successfully completed the acquisition of Filo Corp. and established a 50/50 joint venture named Vicuña Corp. This strategic move positions the companies to leverage the promising copper opportunities in the Vicuña district, spanning Argentina and Chile. The transaction consolidates ownership of the Filo del Sol and Josemaría copper projects under the joint venture, marking a significant milestone in the development of these world-class assets.

BHP’s CEO, Mike Henry, highlighted the partnership’s potential to drive substantial value through the complementary capabilities of both organisations. The joint venture aligns with BHP’s commitment to international industry standards and sustainable development while addressing the growing global demand for copper, a critical metal for infrastructure, renewable energy, and technological advancements.

The Vicuña district is a copper-rich region offering significant growth potential. The Filo del Sol project, owned entirely by Filo Corp. prior to the acquisition, and the Josemaría project, formerly fully owned by Lundin Mining, are now central to the joint venture’s portfolio. These projects are well-positioned to capitalise on increasing copper demand driven by global megatrends such as the energy transition and the rise of artificial intelligence.

The strategic focus on copper aligns with the push for decarbonisation, with the metal playing a pivotal role in electric vehicle production, renewable energy infrastructure, and data centres. By combining resources and expertise, BHP and Lundin Mining aim to accelerate the development of these projects, contributing to economic growth and advancing the global energy transition.

Financial Details and Implications

BHP’s total cash payment for the transaction was US$2.0 billion, reflecting its strong commitment to expanding its copper portfolio. The Filo Acquisition, valued at C$4.0 billion, was shared between the two partners. BHP Canada contributed C$2.0 billion (US$1.4 billion) in cash at a rate of C$33.00 per Filo Corp. share, while Lundin Mining’s share included C$877.8 million in cash and 94.1 million shares.

Additionally, BHP Canada acquired a 50% interest in the Josemaría project from Lundin Mining for US$690 million. The combined financial outlay underscores the strategic importance of these assets to both companies. The transaction also includes a shareholder agreement, ensuring equal voting rights and governance responsibilities for the joint venture’s Board and management.

Strategic Vision and Future Growth

The Vicuña Joint Venture represents a forward-looking approach to resource development, with BHP and Lundin Mining pooling their capabilities to unlock long-term value. Vicuña Corp., the Canadian-incorporated operator of the joint venture, will independently manage the projects, adhering to the highest operational standards. This governance structure ensures transparency, efficiency, and alignment with stakeholder interests.

The partnership reflects BHP’s strategy to invest in high-quality, future-facing commodities. Copper’s essential role in enabling the global energy transition and digitalisation positions this joint venture as a key growth driver. By fostering innovation and adhering to sustainability principles, BHP and Lundin Mining aim to create a lasting positive impact on communities, shareholders, and the environment.

This collaboration not only enhances the resource base for both companies but also underscores their commitment to meeting the challenges of a rapidly evolving world. With a shared vision and robust financial backing, the Vicuña Joint Venture is poised to become a cornerstone of the global copper supply chain, supporting sustainable development and technological progress.