Mining giant BHP (ASX, NYSE: BHP) and Canada’s Lundin Mining (TSX: LUN) have teamed up to acquire South America-focused Filo Corp. (TSX: FIL), in a $3 billion (C$4.1bn) deal that hands them key copper assets in Chile and Argentina.
BHP and Lundin are forming a 50/50 joint venture that will have full ownership of the Filo del Sol prospect, which is located near the copper-rich Atacama Desert, straddling the border between Argentina and Chile. The partners will also own the large-scale Josemaría copper-gold-silver project, in the San Juan Province of Argentina, about 9 km east of the border with Chile.
BHP chief executive Mike Henry said the companies plan to combine both projects to cut costs, with the Australian miner shelling out a larger sum — $2.1 billion — as Lundin already owned 100% of the Josemaría asset. BHP said is paying about $690 million cash for 50% of the project.
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