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Corporate Responsibility

• Performance Highlights and Objectives
• Corporate Commitment
• Governance and Ethical Conduct
• Environment
• Health and Safety
• Social
• Overview
• Stakeholder Engagement
• Employment and Labour Practices
• Tenke Fungurume (DRC)
• Reports
• Stakeholder Feedback

Social

We recognize that our operations can have significant economic, social and environmental impacts on local communities throughout the life cycle of our mining projects. Our approach to leveraging positive impacts, including local hiring and procurement, is shown in the Economic Responsibility section of this report. In this section, we have detailed our approach to stakeholder engagement; employment and labour practices; health, safety and wellness; investments in community infrastructure, and human rights.

Stakeholder Engagement

Lundin Mining recognizes that effective stakeholder engagement can both create value and manage risk by building a climate of mutual trust and respect. Beyond risk management, effective stakeholder engagement helps us learn by identifying emerging issues that may influence evolving community perceptions, business operations, and market conditions. Strategically, effective engagement is critical to establishing credibility as a partner of choice. Lundin Mining believes it is essential to conduct dialogue in a spirit of openness, transparency and good faith, to be active listeners, and to follow up conscientiously on outstanding or unresolved issues.

Stakeholder Concerns

During 2010, there were no disputes relating to land use, customary rights of local communities and Indigenous Peoples.

Lundin Mining's operations do not feature involuntary resettlement or challenges associated with artisanal mining. There have been no significant concerns from communities of interest respecting HSEC management at LMC or its sites. Related issues associated with the Tenke project in the DRC (operated by Freeport- McMoRan Copper & Gold) are highlighted later in this report.

Complaints from neighbours have included noise from a ventilation fan and crusher at Zinkgruvan and dust from rock piles, also at Zinkgruvan. A single complaint about blasting vibration was made at Galmoy. All complaints were addressed by site management and have been reported to the HSEC Committee of the Board.

Each site has a Community Communication Plan that describes the main Communities of Interest for the mine and the site's assessment of the best ways to meet their various information needs. These include direct contact with community representatives, newsletters, mine visits and tours. Neves-Corvo has a public relations department that promotes contact with all local stakeholders, particularly municipalities, industrial associations and other associations so as to allow a full understanding of the local concerns about the environment. Neves-Corvo maintains a copy of the Environmental Report at the mine main gate office available to any interested party.

Stakeholder Engagement

STAKEHOLDER	KEY INTERESTS AND CONCERNS	METHOD OF ENGAGEMENT
Employees and Contractors	Health and safety on-site Working conditions Career advancement	Detailed HSEC Management System applicable to employees and contractors Regular employee performance reviews Employee training
Governments	Fiscal and regulatory frameworks Environmental compliance Hiring of local labour	Regular consultation with, and adherence to, government directives Applications for environmental permits associated with expansions Training and skills development
Local Communities	Environmental and social impacts of operations Local employment and procurement Community infrastructure	As all operating sites are mature, meetings are held with community representatives as required or upon request
Customers	Reliable supplies High quality products	Regular discussions and provision of health and safety data on products
Labour Unions	Workers' interests Collective bargaining	Maintenance of a mixture of individual and collective agreements Respect for the right of each employee to freely choose to join a union
Non-Governmental Organizations	Social and environmental performance of operations	Engagement with national and international NGOs primarily through involvement with industry associations and regular attendance at special forums on CSR related to the mining industry
Shareholders	Corporate Governance Financial performance Risk assessment and mitigation	Continued vigilance with respect to business ethics Analyst and investor briefings and press releases
Financial Institutions	Enhanced Sustainability Reporting	Responses to requests for information on HSEC performance Production of 2010 GRI Report

Employment and Labour Practices

At the end of 2010, Lundin Mining had approximately 1,500 employees, 212 of which were women. Turnover of the workforce is low at about 5%.

The Company treats all people equally with respect to employment. The ratio of men's salaries to women's ranged between 80% and 138% at the operating sites in 2010 and this disparity is solely related to seniority issues. (For example, In Neves-Corvo, the number of female employees is much smaller, but the average seniority of those employees is higher). There were no complaints of any form of discrimination in the workplace during 2010.

The Company received services from 1,200 contract employees who were primarily engaged in maintenance, mine development and mining work. Contractors are held to the same safety standards as Lundin Mining employees and in this respect are treated equally.

All employees working at mine sites are covered by local collective agreements, representing 91% of all employees across the Company. Employees are represented on safety matters through local Joint Health and Safety Committees at the mine sites.

Training is an important activity in mining operations and, on average, employees in Neves-Corvo and Zinkgruvan received around 50 hours of training per year in 2010. At Zinkgruvan considerable effort was spent on safety training in 2010 resulting in 310 company employees and 120 contractor employees attending a full day workshop on safety culture including conducting a risk assessment and a strengths and weaknesses analysis of the Site's safety program. At Aguablanca, the site took full advantage of the temporary closure to maximize training opportunities with the result that operators received an average of more than 270 hours in 2010.

On February 16, 2010, underground mining employees at Neves-Corvo commenced a program of two hour strikes at the beginning of each shift accounting for approximately 40% -- 45% of effective production time, once transit times and meal breaks were taken into account. This action ended on April 1, 2010, with the underlying issue still unresolved. Although Lundin Mining received notice of possible further industrial action during April 2010, this was averted by management and employees working together to create a mutually amicable agreement based which was reached on May 14, 2010.

Aguablanca also experienced strike activity in 2010, related primarily to compensation issues. While industrial action was ultimately called off after ten days and a full return to work was achieved, the underlying dispute was not resolved before ramp failure caused a temporary suspension of the open pit.

Lundin Mining Corporation Workforce Demographics
Permanent workers	1295
Temporary/fixed term contract workers	224
Total employees	1544
Full-time employees	1533	(99%)
Part-time employees	11	(1%)
Male employees	1332	(86%)
Female employees	212	(14%)
Contractors (excluding capital growth projects)	1042
Contractors engaged in capital growth projects	274
Employees aged < 30 years	257	(17%)
Employees aged 30-50 years	912	(59%)
Employees aged > 50 years	375	(24%)
Non-managerial Employees covered by collective agreements	1402	(91%)

Neves-Corvo   2007 2008 2009 2010 Male Employees 775 799 767 834 Female Employees 67 83 82 88 Total Employees 842 882 849 922 Employee Turnover(%) 2.0 1.0 5.0 4.0 Non-managerial workforce covered by collective bargaining (%) 100 100 100 100 Zinkgruvan   2007 2008 2009 2010 Male Employees 249 248 247 272 Female Employees 52 58 58 62 Total Employees 301 306 305 334 Employee Turnover(%) 7.7 10.7 6.6 7 Non-managerial workforce covered by collective bargaining (%) 100 100 100 100

Aguablanca   2007 2008 2009 2010 Male Employees 124 123 120 130 Female Employees 39 35 37 37 Total Employees 163 158 157 167 Employee Turnover (%) 13.6 17.5 12.5 12.0 Non-managerial workforce covered by collective bargaining (%) 0 0 0 0 Galmoy   2007 2008 2009 2010 Male Employees 203 175 32 41 Female Employees 20 18 6 7 Total Employees 223 193 38 48 Employee Turnover (%) 10.0 21.0 85.0 4.0 Non-managerial workforce covered by collective bargaining (%) 100 100 100 100

	Neves-Corvo	Zinkgruvan	Aguablanca	Galmoy
Ratio of basic salary of men to women (total employees)	80%	104%	108%	71%
Ratio of basic salary of men to women (management, technical and administration employees)	139%	122%	130%	N/A
Ratio of basic salary of men to women (blue collar employees, operators and miners)	129%	121%	114%	N/A

N/A = Not available