Lundin Mining Fortifies Copper Portfolio with Key Chilean Acquisitions

**March 10, 2026** – Lundin Mining Corporation, a global diversified mining company, has announced a significant strategic move to bolster its copper-dominant asset base in Chile. The company has signed purchase agreements to acquire an additional 5% ownership in SCM Minera Lumina Copper Chile, the entity controlling the Caserones copper-molybdenum mine, and a substantial 30.9% stake in the Los Helados copper-gold project. This dual transaction, valued at a total of $215 million (C$291.37 million), is poised to enhance Lundin Mining’s attributable production profile and secure a significant foothold in a promising development project within the renowned Vicuña District. The acquisition underscores Lundin Mining's disciplined approach to growth, focusing on high-quality assets in established mining jurisdictions. This investment further solidifies the company's commitment to the global demand for copper, a critical mineral for the energy transition and electrification initiatives worldwide. The finalization of these agreements is anticipated by April 2026, contingent upon regulatory approvals and the completion of all agreement conditions, though it does not require shareholder approval.

Expanding Attributable Production at Caserones

The boost in ownership at Caserones represents a continuation of Lundin Mining's strategy to deepen its interest in this key Chilean operating asset. Lundin Mining initially acquired a 51% share in Caserones in 2023, progressively increasing its stake to 70% in 2024. With this new 5% ownership, Lundin Mining's attributable interest in SCM Minera Lumina Copper Chile will reach 75%. This incremental share directly translates into enhanced attributable copper production. The Caserones mine is forecast to produce between 130,000 tonnes per annum (tpa) and 140,000 tpa of copper in 2026. Lundin Mining's additional 5% stake is expected to contribute an extra 6,500 to 7,000 tonnes of copper to its attributable production guidance for the year. This increase is particularly significant given the current robust demand for base metals and the strategic importance of Chile as the world's largest copper-producing nation. Beyond production volumes, the transaction also targets an attractive annual cash cost for Caserones, projected to be between $2.05/lb and $2.25/lb of copper after byproduct credits. This cost efficiency is crucial for maintaining strong margins, especially in a dynamic commodity market. Caserones, as a copper-molybdenum mine, benefits from the molybdenum byproduct, which significantly reduces net cash operating costs, making the operation more resilient to copper price fluctuations.

Unlocking Future Growth with Los Helados

Perhaps the most forward-looking aspect of this acquisition is the 30.9% stake in the Los Helados copper-gold project. Acquired from JX Advanced Metals Corporation and its affiliates, this transaction also includes a net smelter return (NSR) royalty of 0.62% from the same sellers. While Caserones provides immediate production uplift, Los Helados offers substantial long-term growth potential through its impressive resource endowment. Los Helados hosts indicated mineral resources on a full-scale basis that are truly significant, detailing: * **Copper:** 8.3 million tonnes (mt) * **Gold:** 10.2 million ounces (moz) * **Silver:** 97.5 million ounces (moz) These robust resources are contained within 2.1 billion tonnes of material, exhibiting average grades of 0.40% copper, 0.15 grams per tonne (g/t) gold, and 1.5 g/t silver. While these grades might be considered low by some historical standards, the sheer scale of the deposit, combined with its polymetallic nature (copper, gold, and silver), positions Los Helados as a significant future development opportunity. Large-scale, lower-grade deposits are increasingly becoming the norm as higher-grade shallow ores are depleted, leveraging economies of scale in modern mining operations. The acquisition of a substantial interest in Los Helados strategically places Lundin Mining in the "emerging Vicuña District." This region, straddling the border between Argentina and Chile, has gained prominence in recent years due to several high-profile copper and gold discoveries and projects. Lundin Mining's investment here signals confidence in the district's geological prospectivity and its potential to host world-class deposits. Such large-scale development projects are critical for mining companies aiming to sustain and grow their production profiles over several decades.

Strategic Rationale and Portfolio Optimization

Jack Lundin, President and CEO of Lundin Mining, articulated the strategic imperative behind these acquisitions. "Securing an additional 5% ownership in Caserones and acquiring 31% of the Los Helados Project marks another significant step in strengthening Lundin Mining’s copper-dominant portfolio in the emerging Vicuña District," he stated. Mr. Lundin further emphasized that "this investment increases our attributable production profile at an attractive acquisition price and demonstrates our ongoing commitment to disciplined, scalable growth in high-quality assets." This statement highlights several key aspects of Lundin Mining’s corporate strategy: * **Copper Focus:** The company is intentionally building a portfolio centered around copper, a commodity with strong supply-demand fundamentals driven by global decarbonization efforts, electric vehicle adoption, and renewable energy infrastructure. * **Attributable Production Growth:** By increasing stakes in existing operations like Caserones, Lundin immediately boosts its share of produced metals, enhancing revenue potential and investor appeal. * **Strategic Growth in Key Districts:** The investment in Los Helados reflects a long-term vision, securing future growth options in a geologically promising "emerging" region, rather than solely relying on established, mature assets. * **Disciplined Capital Allocation:** The ~$215 million price tag is framed as "attractive," suggesting a value-driven approach to investment that balances growth ambitions with financial prudence. This pursuit of a stronger, copper-centric portfolio in Chile is also contextualized by recent portfolio adjustments elsewhere. In January 2026, Lundin Mining completed the C$176.21 million sale of Lundin Mining US, its subsidiary that indirectly owned the Eagle mine and Humboldt mill in Michigan, US, to Talon Metals. This divestment, while modest in comparison to the Chilean acquisitions, demonstrates Lundin's active portfolio management, strategically focusing its capital and operational expertise on core strengths and geographies that align with its long-term growth objectives. The shift away from Eagle, known for its nickel-copper-PGE mineralization, reinforces the deliberate pivot towards large, long-life copper assets like those in the Vicuña District.

Chile's Enduring Appeal in the Global Mining Landscape

Chile's position as a premier mining jurisdiction cannot be overstated. As the world's leading copper producer, the country offers a robust regulatory framework, extensive mining infrastructure, a skilled workforce, and a proven track record of significant mineral discoveries. These factors contribute to an attractive investment environment for major players like Lundin Mining. The Caserones mine, located in Chile's Atacama region, benefits from established operational logistics and access to essential resources, including power and water (often a critical consideration in arid regions). The Vicuña District, though still developing, is adjacent to regions with existing mining operations, suggesting the potential for shared infrastructure and operational synergies as projects advance. Lundin Mining's deepened presence in Chile leverages these inherent advantages, mitigating some of the risks associated with large-scale mining investments in less established regions.

Future Outlook and Market Implications

Upon the anticipated finalization of the transaction by April 2026, Lundin Mining will be in an even stronger position within the global copper market. The increased attributable production from Caserones will contribute positively to short-to-medium-term revenue streams, while the significant interest in Los Helados provides a solid base for long-term production growth and resource value. For Los Helados, the next steps will likely involve comprehensive studies – including pre-feasibility and feasibility studies – to further define the metallurgical characteristics, engineering requirements, and economic viability of bringing such a large-scale project into production. Given the current projections of sustained high copper demand, driven by global electrification trends, developing projects like Los Helados will be crucial for meeting future supply needs. Industry professionals and investors will be closely watching Lundin Mining's integration of these new stakes and the progress of the Los Helados project. This strategic move highlights the ongoing consolidation and pursuit of high-quality assets within the mining sector, as companies strive to secure future supply in a world increasingly reliant on critical minerals. Lundin Mining’s latest acquisitions in Chile serve as a compelling example of a major player executing a clear, copper-focused growth strategy, navigating both operational enhancements and long-term resource development.