Newly listed Canadian miner Lumina Metals has signed a letter of intent with Polish mining giant KGHM to explore a future copper concentrate supply agreement from its Nowa Sól project in Poland, in a development that could link one of the world’s largest undeveloped copper deposits directly to Europe’s most significant copper processing infrastructure.
The letter of intent, announced on Tuesday, initiates discussions on technical and commercial terms for the supply of copper concentrates from Nowa Sól to KGHM, whose existing copper-silver mine operations in Poland’s Northern copper belt are located in close proximity to the project and host one of Europe’s key copper processing facilities. KGHM is Poland’s only producer of copper and silver and ranked eighth globally in copper output last year.
Nowa Sól covers 120 square kilometres of the Northern copper belt and hosts a measured and indicated resource of 604 million tonnes grading 1.24% copper and 38 grams per tonne silver — figures that place it among the world’s most significant undeveloped copper projects and one of the largest undeveloped silver deposits globally. Lumina has completed more than 51,000 metres of drilling at the project since its initial discovery in 2014.
The announcement follows Lumina’s recent C$406.2 million ($297 million) initial public offering on the Toronto Stock Exchange, one of the larger recent copper-focused IPOs in the Canadian market. The company also plans to list on the Warsaw Stock Exchange. Shares were trading at approximately C$11.50 by midday Tuesday, around C$1 below the IPO price, giving the company a market capitalisation of approximately C$1.2 billion.
Lumina CEO Jordan Pandoff described the KGHM letter of intent as “an important step in reinforcing the Polish metal mining industry” and in positioning Nowa Sól as a cornerstone of copper and silver supply within both Poland and the European Union.
