LatAm Mining M&A Shines with Copper and Precious Metals While Lithium Loses Its Luster

By Velizar Velikov, Head of M&A Database at EMIS

Latin America’s mining sector remains a hotbed of M&A activity, with copper and precious metals driving investor interest, even as lithium begins to fade from the spotlight. 

Copper: The Metal of the Future

Global mining giant BHP projects copper demand to grow by an average of 2.6% annually until 2035, a notable jump from the 1.9% annual growth seen in the 15 years leading up to 2021. This surge is attributed to the increasing adoption of copper-intensive technologies, such as battery-powered electric vehicles, which has sparked a global rush for copper assets. Latin America, particularly Chile and Argentina, has emerged as a key beneficiary of this trend.

BHP plans to pour up to USD 14 bn into boosting copper production in Chile. Among the most prominent M&A deals in Chile since the beginning of 2024 is Canadian mining giant Lundin Mining’s USD 350mn acquisition of an additional 19% stake in the Caserones copper-molybdenum mine. In July, Canadian miner Capstone Copper secured the Sierra Norte iron oxide copper gold project in Chile’s Atacama Region for USD 28.9mn.

Argentina, meanwhile, is drawing renewed optimism following the election of pro-business President Javier Milei. The nation’s geological similarity to Chile has sparked hope that its mining sector can reach its full potential. Recent headline deals include a USD2.9bn acquisition of Argentina-focused copper miner Filo Corp by BHP and Lundin Mining, as well as BHP’s USD 690mn purchase of a 50% stake in the Josemaria copper-gold project from Lundin.

Gold and Silver Sparkle Amid Geopolitical Uncertainty

In 2024, Latin America has also attracted robust interest in gold and silver, driven by soaring metal prices amid global geopolitical instability. Among the most significant transactions in the sector are Canadian silver major First Majestic Silver’s USD 935.4mn acquisition of Mexico-focused miner Gatos Silver and Canadian gold miner G Mining Ventures Corp’s USD 636.4mn purchase of the Oko West gold project in Guyana.

Lithium: A Fading Star 

While lithium has been a darling of the mining world in recent years, falling prices - linked to weaker-than-expected electric vehicle sales - have dulled its shine. Despite this, the sector saw notable M&A activity in 2024. French mining giant Eramet agreed to buy the remaining 49.9% of its Argentinian lithium JV Eramine Sudamerica for USD 699mn, while Australian lithium miner Pilbara Minerals announced a USD 369.6mn acquisition of Brazil-focused Latin Resources. Earlier in the year, Australian firm Lithium Energy sold its 90% stake in Argentina’s Solaroz lithium brine project for USD 63mn.

Future Prospects: Copper and Gold to Lead the Charge 

Looking ahead, copper and precious metals are expected to remain the primary attractions for foreign capital in Latin America. Among the companies drawing interest is Peru-focused Regulus Resources, which is seeking a buyer for its AntaKori copper-gold project. With geopolitical and technological shifts continuing to drive demand for these resources, Latin America’s mining sector is poised to remain a focal point for global investors.

 

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