Lundin Mining Corporation: First Copper Produced at Tenke Fungurume
March 31, 2009
TORONTO, ONTARIO–(Marketwire - March 31, 2009) - Lundin Mining Corporation (“Lundin Mining” or the “Company”) (TSX:LUN)(NYSE:LMC)(OMX:LUMI) is pleased to announce that the first copper cathode has been produced by the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo (“DRC”). Lundin Mining holds a 24.75% equity interest in the project.
The project’s initial high-grade oxide ore facilities have been designed to achieve approximately 115,000 metric tonnes of copper cathode and 8,000 tonnes per annum of cobalt production. Ramp up of copper production will continue over the next several months in parallel to completion of the cobalt circuit and acid plant. Full production levels in the initial plant are expected during the second half of the year.
The Tenke project represents the largest capital investment in the country in decades and incorporates the latest copper extraction technology and best in class international operating standards. The project has been designed and constructed to the highest criteria respecting environmental performance, labour practices, occupational health and safety and social responsibility.
Commenting on the achievement of first copper, Mr. Lukas Lundin, the Company’s Chairman, stated, “Freeport-McMoRan should be congratulated on their successful execution of this project. It is a credit to them, the project partner Gecamines - the State-owned mining company, and to the DRC Government. It gives me great pleasure to see a long-term dream finally realized.”
The project is a major employer in the DRC and will provide the DRC with significant tax, royalty and dividend revenues.
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Spain and Sweden, producing copper, nickel, lead and zinc. In addition to its equity interest in the Tenke Fungurume Project, the Company is undertaking expansion programs at its Neves-Corvo copper/zinc mine in Portugal and its Zinkgruvan zinc/lead/silver copper mine in Sweden. The Company also holds an exploration portfolio and interests in exploration ventures.
On Behalf of the Board,
Phil Wright, President and CEO
Forward Looking Statements
Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the Ontario Securities Act or “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
Cautionary Notes to Investors - Reserve and Resource Estimates
In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed or incorporated by reference in this Annual Information Form have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Standards on Mineral Resources and Reserves Definitions and Guidelines” (the “CIM Guidelines”). The definitions of mineral reserves and mineral resources are set out in our disclosure of our mineral reserve and mineral resource estimates in our Annual Information Form.
The Company uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. While those terms are recognized by Canadian securities regulatory authorities, they are not recognized by the United States Securities and Exchange Commission (the “SEC”) and the SEC does not permit U.S. companies to disclose resources in their filings with the SEC.
Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve, or is or will ever be economically or legally mineable or recovered.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lundin Mining Corporation
Investor Relations North America
Lundin Mining Corporation
Senior Business Analyst
(416) 348-0303 (FAX)
Lundin Mining Corporation
Investor Relations Europe
+46 (701) 112615