Lundin Mining, owner of the Galmoy lead and zinc mine in Co Kilkenny, has merged with EuroZinc in a bid to become one of the world's largest copper and zinc producers.
The combined company, to be called Lundin, will have a market capitalisation of $3 billion (€2.3 billion) and will be listed on the Toronto and Stockholm stock exchanges.
"By combining the two companies, our collective strengths will allow us to further improve the significant operating cashflow from each of the operations," said Colin Benner, vice-chairman and chief executive of EuroZinc.
He said the new group would fill what was currently a void in the mid-tier mining market.
Upon completion of the merger, which is subject to shareholder approval, the new company will own and operate four profitable operating mines in Portugal, Sweden and Ireland. It also plans to reopen a fifth mine, in Aljustrel, in the second half of next year.
Combined production, including the planned activities at the Aljustrel mine, is expected to be about 205,000 tonnes of zinc, 90,000 tonnes of copper, 80,000 tonnes of lead and six million ounces of silver a year.
Under the terms of the agreement, each EuroZinc share will be exchanged at a ratio of 0.095 Lundin shares. Existing EuroZinc and Lundin shareholders will own about 57 per cent and 43 per cent of the new group respectively.
Sir Anthony O'Reilly, who before yesterday's announcement had a 9 per cent stake in Lundin, will hold a 3.8 per cent stake in the new combined company.
