Tenke Project on Schedule for 2009 Commissioning

Lundin Mining Corp. reported on January 26 that the Tenke Fungurume copper/ cobalt project is expected to enter the commissioning phase in the second quarter of 2009 with a target of producing first copper cathode in that quarter. Full commercial production is forecast in the second half 2009.

Lundin holds a 24.75% equity interest in the Tenke project, located in Katanga Province, Democratic Republic of Congo. Construction of the first phase of operations is nearing completion by its operating partner, Freeport-McMoRan Copper & Gold.

According to a Lundin press release, pre-production mining has produced an initial stockpile of mill grade ore, the operations work force is continuing to be assembled and trained and startup supplies of diesel, acid and other critical process consumables are on site. Construction costs to complete the initial phase of the project are expected to be below Freeport’s previous capital cost estimate of $1.75 billion. Lundin Mining’s capital requirements for Tenke in 2009 are expected to be less than $40 million covering prorata working capital, exploration drilling, expansion studies and other minor costs.

Through a $140 million financing and technical support agreement with the Congolese state power authority, refurbishment of the Nseke hydro plant and upgrades to the regional transmission system are advancing, and Lundin said it and Freeport are also contributing to other regional infrastructure including improvements of the border crossing facilities at the DRC/Zambian border aimed at improving transport times for imports and exports.

As featured in Womp 2009 Vol 02 - www.womp-int.com