Lundin Mining to buy Rio Tinto’s Eagle copper mine in Michigan
TORONTO (miningweekly.com) – Base-metals miner Lundin Mining on Wednesday announced that it has entered into a definitive agreement to buy global mining major Rio Tinto’s high-grade Eagle nickel/copper underground mine, in northern Michigan, for about $325-million.
Lundin CEO Paul Conibear said the acquisition “fitted ideally” within the company’s asset base and was the result of the disciplined approach the company had been focused on for some time to acquire high-quality, advanced-stage assets in low-risk, mining-oriented jurisdictions.
“The Eagle mine represents a unique opportunity to acquire a high-grade project, which is under construction and expected to begin generating significant levels of metal production and cash flow prior to the end of next year.
“Northern Michigan has an outstanding iron-ore, gold and base-metals mining history and, consequently, excellent regional power, road and rail infrastructure, with extensive mining expertise within local communities to support and staff the Eagle mine,” he said.
The Eagle mine is located in Marquette County in the Upper Peninsula of Michigan. Project construction was slightly more than halfway complete and first production was expected in the fourth quarter of 2014.
Yearly production over the first three full years, from 2015 to 2017, was expected to average about 23 000 t/y of nickel and 20 000 t/y of copper, with additional by-product credits of precious metals and cobalt.
Lundin said that, as a result of the high nickel grades and strong by-product credits, cash costs for the first three years were expected to average about $2/lb of nickel, thereby, positioning the asset in the lowest quartile of the nickel producer cost curve.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















