Lundin Mining Corporation

2017 Capital Expenditure Guidance

  • Capital expenditures for 2017 for mines operated by the Company are expected to be approximately $405 million, which includes:
    Capital Expenditures ($ millions) 2017
    Candelaria (100% basis):  
      Total Capitalized Stripping 105
      Los Diques Tailings 135
      Other Sustaining 25
    Candelaria Sustaining 265
    Eagle Sustaining 10
    Neves-Corvo Sustaining 50
    Zinkgruvan Sustaining 40
    Total Sustaining Capital 365
    Eagle Expansionary 35
    Zinkgruvan Expansionary 5
    Total Expansionary Capital 40
    Total Capital Expenditures 405
  • At Candelaria spending on the Los Diques tailings facility is expected to amount to $135 million in 2017 and a further $30 million in 2018. Originally budgeted at approximately $400 million, total project costs are now estimated at approximately $295 million as a result of design innovation, and productivity on self-performed civil works and synergies with Candelaria operations.
  • Capitalized stripping expenditures at Candelaria are estimated to be $105 million in 2017 as we aim to move more waste material in stripping to ensure production requirement and flexibility for future years.
  • At Neves-Corvo capital costs are expected to total approximately $50 million, excluding potential expenditures on the ZEP.
  • At Zinkgruvan capital costs are estimated to total $45 million which includes approximately $5 million remaining to spent on the 1350 Expansion Project prior to commissioning in mid-2017.

2017 Exploration Investment

Exploration expenditures, not including Tenke, are expected to be approximately $65 million in 2017. This is a near 40% increase over estimated 2016 expenditures reflecting focus on aggressive in-mine and near-mine exploration programs at Candelaria, Eagle, and rejuvenation of the programs at Zinkgruvan and Neves-Corvo. Approximately $56 million is expected to be directed toward in and near-mine targets ($32 million at Candelaria and $16 million at Eagle), with the remainder to advance exploration activities at our existing mines and budgeted activities for new South American and Eastern European exploration projects.