TORONTO, ONTARIO–(Marketwire - Dec. 9, 2010) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) (“Lundin Mining” or the “Company”) reports that very heavy rains over the last few days in the Extremadura region of Spain, where the Aguablanca Mine is located, have caused operations to be curtailed.
Associated with this rainfall, there has been a significant slope failure on the southwest wall of Aguablanca’s open pit affecting the main access ramp which has curtailed operations pending an initial technical investigation. Following the investigation, a decision will be made regarding the future of the operations. This decision is likely within the next few weeks.
Aguablanca Mine is a small nickel/copper mine in southern Spain and is a non-core operation for Lundin Mining. Internal estimates ascribe around 3% of total NAV to this asset.
Commenting on the slope failure Mr. Phil Wright, President and CEO of Lundin Mining said, “Aguablanca has proven to be a very difficult operation this year with pit slope stability issues and despite the best advice, we have continuing problems.”
“Pending the results of an initial assessment presently underway by mine management, we may conclude that a longer-term suspension of operations is necessary to allow further review of the alternatives for operating this asset, including the possible relocation of the main ramp.
“If we decide that a longer-term suspension is necessary, it is not possible to predict at this stage how long might be required prior to recommencement of operations and we will accordingly consider the carrying value of Aguablanca as part of our normal year-end financial statement preparation.
Lundin Mining has a carrying value for Aguablanca of approximately $120 million. Production at Aguablanca for 2010 is now expected to be 6,150 tonnes of nickel and 5,200 tonnes of copper.
About Lundin Mining
Lundin Mining Corporation (“Lundin”, “Lundin Mining” or the “Company”) is a diversified base metals mining company with operations in Portugal, Spain and Sweden, producing copper, nickel, lead and zinc. 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,
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, 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.