Boliden Expands in Latin America With $1.3B Nexa Deal
Swedish mining group Boliden has agreed to acquire Votorantim’s 65% controlling stake in Nexa Resources for approximately $1.3 billion in shares, marking a major expansion of its zinc and silver operations in Latin America.
Under the agreement, Boliden will issue 0.25 of a Boliden share for each Nexa share, implying a value of $15.29 per Nexa share. Following completion, Boliden plans to launch a cash tender offer for the remaining 35% of Nexa.
The transaction gives Boliden access to Nexa’s portfolio of five polymetallic mines and three zinc smelters across Brazil and Peru. The assets include Cerro Lindo, El Porvenir and Atacocha in Peru, as well as Vazante and the ramping-up Aripuanã mine in Brazil.
Nexa also operates Cajamarquilla in Peru, described as the largest zinc smelter in the Americas, together with the Três Marias and Juiz de Fora smelters in Brazil.
According to BMO Capital Markets analyst Alexander Pearce, Nexa could add approximately 240,000 tonnes of attributable mined zinc, 18,000 tonnes of copper and 7 million ounces of silver to Boliden's expected 2027 production.
That would increase Boliden’s forecast mined zinc output by about 62%, copper production by 14% and silver production by 64%.
The acquisition follows Boliden’s $1.4 billion purchase in 2025 of Lundin Mining’s Neves-Corvo copper-zinc mine in Portugal and Zinkgruvan zinc mine in Sweden. Together, the transactions represent a significant expansion of Boliden’s base-metal production platform.
Once the Nexa deal closes, the combined group would operate 12 mining units and eight smelters across Europe and Latin America.
Boliden expects the transaction to increase earnings per share by more than 8% immediately. At the same time, its pro forma net debt-to-equity ratio would rise to around 33%, compared with 24% previously.
The company has secured a $2 billion bridge facility that can support the tender offer, certain minority-interest obligations in Peru and potential refinancing at Nexa.
From an operational perspective, the larger asset base will also increase the importance of industrial automation, process control and asset management across Boliden’s expanded mining and smelting network.
Modern zinc and polymetallic operations depend on automated processing systems, industrial networks, instrumentation and equipment monitoring to maintain production efficiency and control operating costs. As mining companies consolidate geographically diverse assets, standardizing operational data and automation practices can become increasingly important.
The deal also strengthens Boliden’s exposure to silver, providing a significant increase in precious-metal production alongside its core base-metal business.
Votorantim will receive approximately 21.4 million newly issued Boliden shares and is expected to hold around 7% of the Swedish company after completion. The transaction values Nexa at roughly $2 billion on an equity basis and approximately $3.7 billion including debt and other obligations.
The acquisition is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals. Nexa will remain listed on the New York Stock Exchange, while most of its existing management is expected to remain in place.
For Boliden, the deal offers a substantial increase in zinc, copper and silver production and a stronger presence in Latin America. The key challenge will be integrating a much larger and geographically complex mining portfolio while maintaining reliability, productivity and capital discipline across the combined operations.
Written by: Daniel Mercer
Daniel Mercer is an industrial technology journalist with more than 13 years of experience covering mining automation, process control, electrical systems and resource-sector technology. His reporting focuses on the operational impact of automation across mining and heavy industry.