TORONTO, ONTARIO–(Marketwire - May 14, 2010) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) (“Lundin Mining” or the “Company”) today reported that Neves-Corvo management and the union representing Neves-Corvo employees have reached agreement on a new pay-for-performance based incentive that has been endorsed by the workforce.
Commenting on the agreement, Mr. João Carrêlo, the Company’s Chief Operating Officer said, “A new arrangement is to be implemented from June 1, 2010, that provides additional payment to employees based on actual improvements in productivity thus benefiting shareholders, the workforce and other stakeholders.
“The agreement settles all outstanding industrial issues and offers the potential to enhance the long-term competitiveness of the mine, ensuring its sustainability and its position as a major contributor to the regional and national economy.
“Our focus now is to work with the employees to achieve the productivity improvements that we believe are attainable. In addition, every effort will be directed to recovering production lost during the recent industrial action,” Mr. Carrêlo said.
The new productivity arrangement provides additional payment to employees for actual increases in productivity, based on a measure of tonnes-per-employee, with the baseline being set at 2009 levels. The recent revision to production guidance at Neves-Corvo will remain as a precautionary measure and will be reviewed as part of the outlook presented along with Q2 results in July 2010.
About Lundin Mining
Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves‐Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.
On Behalf of the Board,
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. 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, nickel, 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.