TORONTO, ONTARIO–(Marketwire - Nov. 1, 2011) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) (“Lundin Mining” or the “Company”) is pleased to report that Freeport-McMoRan Copper & Gold Inc. (“FCX”), as operator of the Tenke Fungurume mining operations in the Democratic Republic of Congo (“DRC”) has advised that its Board has approved the undertaking of a second phase of expansion at Tenke Fungurume, which targets the addition of approximately 150 million pounds (68,000 tonnes) of copper cathode production annually. The Phase 2 Expansion (“Phase “2”) is expected to increase copper production by 50% to approximately 195,000 tonnes of copper cathode and 15,000 tonnes of cobalt in hydroxide, targeted for completion in 2013. Further highlights of FCX’s development plans for the Phase 2 expansion are as follows:
- The approximately US$850 million expansion includes additional mining equipment, mill upgrades, acid plant expansion and a doubling of existing tank house capacity that will result in excess SX-EW capacity of copper cathode production. This excess tank house production capacity is a cost effective addition to the Phase 2 project that will be used as Tenke Fungurume continues to expand in the future through potential heap leaching of low grade ore combined with future mixed/sulphide ore expansions, which are currently being advanced with metallurgical test work and conceptual level studies.
- The Phase 2 mine plan contemplates average feed grades of approximately 4.0 % total copper, and 0.40 % total cobalt and average recoveries of 89% copper and 74% cobalt over the next 5 years.
- Strip ratio over this period is approximately 3.3:1. Test scale on/off heap leach test pads are currently under construction at site to evaluate the potential of commencing heap leaching of the low grade material, which is currently being mined and stockpiled.
- Limited early works on this expansion started with partner funding earlier this year to take advantage of the dry season for civil works and enabling the start of concrete installation. Certain critical path equipment was also ordered earlier this year to achieve schedule advances on the expansion.
- Funding obligations for capital expansions at Tenke Fungurume are split 70:30 between FCX and Lundin Mining, however, subject to metal prices being strong, it is anticipated that the capital cost for the Phase 2 expansion will be funded out of surplus cash from Tenke Fungurume operations.
Paul Conibear, President and CEO of Lundin Mining, commented, “The Phase 2 expansion investment at Tenke Fungurume represents one of the lowest technical risk and highest payback opportunities for shareholders. The expanded facilities should measurably lower unit cash operating costs of Tenke Fungurume, further benefiting all stakeholders. The project partners are excited about this next phase of growth and development at Tenke Fungurume both for the value it creates for shareholders and for the positive economic and social impact it will have in the DRC.”
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian 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 Neves‐Corvo mine along with its equity stake in the world class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.
On Behalf of the Board,
Paul Conibear, 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.
Mr Stephen Gatley, BSc(Eng), CEng, MIMMM, Director Technical Services with Lundin Mining, a Qualified Person pursuant to NI 43-101, has reviewed the technical contents of this news release.