Canadian-based Lundin Mining has confirmed the close of its takeover of Josemaria Resources and the Josemaria operation in Argentina, which is also making progress with the recent regulatory approval of its environmental social impact assessment.
The US$485 million deal, first announced last 12 December, closed 28 April and now gives Lundin 100% ownership of the producer and the copper-gold operation in the San Juan province.
“The addition of the Josemaria project to Lundin Mining’s portfolio solidifies our position as a leading base metals producer with high-quality copper exposure and significant growth,” said Peter Rockandel, Lundin Mining President and CEO.
“We look forward to building upon the excellent reputation of Josemaria Resources in San Juan and Argentina[and]…lead the project through the remaining stages of development and into production.”
Lundin also confirmed that Josemaria Resources was notified by the Mining Authority of San Juan that the mine’s Environmental Social Impact Assessment (ESIA) has been approved – a significant milestone in the permitting process.
Currently, Lundin and the Josemaria project team are collaborating with national and provincial authorities on next steps for the project’s development. Commercial agreement discussions are also ongoing; more movement is expected later this year on Josemaria prior to a definitive construction decision.
Josemaria is currently in the basic engineering phase, including the procurement of long-lead equipment for crushing and processing.
While Lundin’s updated technical report is still in process headed for a 4Q22 release, the initial capital expenditure estimate of the project exceeds $4 billion. Post-closing, Lundin said it will spend up to $300 million to advance Josemaria prior to a construction decision for items such as engineering, commitments for long lead items, preconstruction activities and drilling.