Vancouver — Lundin Mining (LUN-T, LMC-N) has ambitious growth plans for its Neves-Corvo copper-zinc mine in Portugal and at the Zinkgruvan zinc-lead-silver mine in Sweden.
Development of the Lombador massive sulphide zone at Neves-Corvo will begin once a feasibility study, expected shortly, reports on an optimal location for a new vertical shaft. The study will also look at engineering design for the processing plant and related infrastructure.
Production from Lombador of about 130,000 contained tonnes (287 million lbs.) zinc, 20,000 contained tonnes (44 million lbs.) lead and 300,000 oz. silver is expected to start by 2011, lasting at least 10 years.
Capital costs for the expansion of about US$250 million will be funded through internal cash flow.
Production for Neves-Corvo this year is forecast at 87,000 tonnes (192 million lbs.) copper in concentrate, 25,000 tonnes (55 million lbs.) zinc in concentrate and 850,000 oz. silver.
Once complete, Lundin Mining’s expansion will make Neves-Corvo Europe’s largest copper and zinc mine.
Ore production at the company’s Zinkgruvan mine is scheduled to rise about 33%, ramping up to 1.2 million tonnes annually by 2010 from 900,000 tonnes. Expansion at the Swedish mine will also see copper concentrate produced, with annual output of about 7,200 tonnes (16 million lbs.) over at least 12 years of operation.
A new decline, to the 350-metre level, will be built in the expansion program along with underground ore storage and crusher infrastructure for the copper ore with expected capital costs of about US$34 million.
Zinkgruvan is forecast to churn out about 70,000 tonnes (154 million lbs.) zinc-in-concentrate, 35,000 tonnes (77 million lbs.) lead-in-concentrate and 1.8 million oz. silver in 2007.
“Once these projects have been completed, together with the Aljustrel production from the end of this year and the startup of the Ozernoe mine development project (in Russia) in 2011, our production of zinc-in-concentrate will more than double,” said Lundin Mining president and CEO Karl-Axel Waplan in a statement. Lundin currently produces 155,000 tonnes zinc-in-concentrate per year.
“Copper production will also dramatically increase with the startup of the Tenke Fungurume project in the fourth quarter 2008 or early 2009,” Waplan said.
Lundin shares have a 52-week trading range of $9.94-$15.84.
Be the first to comment on "Lundin Maps Out Production Growth"