Swedish mining and smelting company Boliden AB is in advanced negotiations to acquire a controlling stake in Nexa Resources SA from Brazilian conglomerate Votorantim S.A. The deal involves Votorantim's approximately 64.7% interest in Nexa, a Latin America-focused base metals producer, and carries an indicative valuation of roughly $1.4 billion (approximately 7 billion Brazilian reais).
The potential acquisition would significantly expand Boliden's footprint in the global base metals landscape, integrating European processing expertise with substantial Latin American reserves of zinc, copper, and lead. Nexa Resources operates five polymetallic mines and three zinc smelters across Brazil and Peru, including Cajamarquilla, described as the largest zinc smelter in the Americas. This move is seen as a strategic step for Boliden to gain geographical diversification, scale, and potentially vertical integration in the zinc supply chain, especially as standalone smelting margins have thinned.
While both Boliden and Nexa Resources have confirmed the ongoing discussions, emphasizing that no binding agreement has been reached, the talks are subject to due diligence, board approvals, and regulatory clearances. Analysts suggest this is a strategic growth opportunity for Boliden, aiming to create a larger, more diversified mining and smelting group, rather than solely securing additional zinc concentrate supply. The deal follows Boliden's recent acquisition of Lundin's zinc assets and is viewed by some as a "merger of equals" in terms of strategic positives, providing Boliden with a solid project pipeline in a favorable jurisdiction.
Nexa Resources is a significant producer with zinc as its main product, alongside copper and lead, and boasts over 65 years of operating history in Latin America. Boliden operates five smelters and seven mining areas in Europe. The potential acquisition aligns with a broader trend of consolidation in the mining sector, as companies seek to lock in raw materials and gain scale. While the $1.4 billion figure has been reported by various media, neither Boliden nor Nexa has officially confirmed this valuation, and the terms of any potential transaction remain fluid.
