TORONTO (miningweekly.com) – Base-metals miner Lundin Mining will permanently stop production at its Galmoy zinc/lead/silver mine, in Ireland, in May this year.

The company, which is battling depressed metals prices, indicated in November that it would likely close the mine earlier than planned.

At Galmoy, operations will be wound down over the coming months, after which rehabilitation work will be completed, Lundin said on Thursday.

Closure costs have been provided for and the cash flow effect of the closure is not expected to have a material effect on the company.

"This is a decision we have taken after examining all the alternatives...it has not been taken lightly,” said president and CEO Phil Wright.

The group, which has mines in Portugal, Sweden, Ireland and Spain, and has a stake in Freeport-McMoRan's giant Tenke Fungurume copper project, in the Democratic Republic of Congo, is the subject of a friendly takeover bid by fellow Canadian HudBay Minerals.

The merger is expected to close as early as this month, but is facing opposition from certain HudBay shareholders, who want to force the Toronto-based company to hold a shareholders vote on the transaction.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.