Lundin Mining Advances $9.5B Vicuña Project with Technical Report Filing
Event summary
- Lundin Mining filed a technical report for the Vicuña Project, a 50/50 joint venture with BHP, on March 30, 2026.
- The report outlines a three-stage development plan for the project, located on the border of Argentina and Chile.
- The project is estimated to produce 400,000 tonnes of copper, 700,000 ounces of gold, and 22 million ounces of silver annually over the first 25 years.
- The project boasts an NPV8% of $9.5 billion and an IRR of 14.8%, with a potential payback period of 5.4 years at current metal prices.
The big picture
The Vicuña Project represents a significant investment in a multi-generational, large-scale mining operation, highlighting the continued demand for base metals driven by electrification and infrastructure development. The staged development approach mitigates risk and allows for flexibility in adapting to changing market conditions and technological advancements. The joint venture with BHP underscores the strategic importance of the project and the willingness of major players to invest in long-term resource development.
What we're watching
- Sanctioning Timeline
- The stated goal of a year-end sanctioning decision will be a key indicator of Lundin Mining and BHP’s commitment and internal alignment on the project’s economics and risks.
- Stage 2 & 3 Optimization
- The success of the staged development hinges on ongoing optimization studies for Stages 2 and 3; delays or cost overruns in these phases could significantly impact the project's long-term profitability.
- Commodity Prices
- The project’s robust economics are highly sensitive to copper, gold, and silver prices; a sustained downturn in any of these metals could jeopardize the project’s viability and require a reassessment of the development plan.
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