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That is where rust started between two plates and bulged the metal.It does not look to be terminal and if you are handy with a grinder and a MIG welder it is worth saving as the price of subframes is only going up.Bear in mind that the repairs need to be carried out properly as it is a load and suspension carrying part.Magnum do repair panels for the bottom of subframes,here are the part numbers for them.
40-10-83-1 Mini MK1/2/3 Bottom Repair Piece - Subframe - L/H 40-10-83-2 Mini MK1/2/3 Bottom Repair Piece - Subframe - R/H