Lundin Mining locks in $4.5B financing for massive copper megaproject
Lundin Mining has secured a $4.5 billion credit facility from finance institutions to fund its Vicuña copper project. The agreement involves 17 financial institutions and extends the company's capital runway through 2031. This move strengthens Lundin's push to become a top global copper producer.
The Vicuña megaproject, developed in partnership with BHP, spans Argentina and Chile. Lundin aims to produce over 500,000 metric tons of copper annually once fully operational.
The expanded credit facility was announced on February 13, 2026, with an initial disbursement of $2.25 billion. The full $4.5 billion will be available once Vicuña's first phase receives official approval. Interest rates on the loan are linked to Lundin's leverage ratio, ensuring flexibility as the project progresses.
The financing involves 12 existing lenders and 5 new financial institutions. This support extends Lundin's financial stability until 2031, providing long-term backing for Vicuña's development.
Following the announcement, Lundin's stock price saw a slight dip. Shares fell from around 36.01 CAD on February 11 to 34.80 CAD on February 13, marking a 1.16% daily drop. Recently, the price stood at 35.21 CAD, down 5.2% from its January 29 peak of 37.16 CAD.
The company will release its fourth-quarter and full-year 2025 results on Thursday, February 19, after U.S. markets close. A conference call on Friday, February 20 will follow, focusing on Vicuña's progress and Lundin's copper production outlook.
The $4.5 billion credit facility secures Lundin Mining's financial footing for the Vicuña project. With the first phase funding already in place, the company moves closer to its goal of producing over 500,000 metric tons of copper yearly. Investors and analysts will watch closely as the project advances and financial updates are shared in the coming days.
