Name of the Project
Neves-Corvo zinc expansion project (ZEP).

Location
Portugal.

Client 
Lundin Mining Corporation.

Project Description
The results of a feasibility study on the project have confirmed strong project economics and demonstrate significant incremental value to the Neves-Corvo operations. 

The study has examined further expanding zinc plant throughput capacity to 2.5-million tonnes a year, coupled with the development of Lombador Phase 2 (LP2). The forecast increase in zinc ore production will be sourced by maximising production from the existing zinc mining areas and by mining from LP2. 

Access to LP2 will be through conventional ramp development, and the mining of zinc and copper mineralisation will use the bench-and-fill method, with some localised areas using the drift-and-fill method.

Broken ore from Lombador Phase 1 and LP2 will be extracted using a new materials handling system, comprising a crusher located on 260 Level and a three-leg conveyor system to elevate the ore to the existing shaft hoisting facilities on 700 Level. 

Minor upgrades will take the existing shaft capacity up to 5.4-million tonnes a year. 

Extensions to the mine’s ventilation, pumping, electrical reticulation and other infrastructure are also planned. 

The existing zinc plant will be significantly upgraded. 

The existing ore storage will be modified and front-end loaders employed to feed an 8.5 MW semiautogenous mill for primary grinding, which was previously bought. 

Secondary grinding will be undertaken in existing mills ahead of newly installed and increased lead and then zinc flotation capacity. 

Upgrades are also proposed to lead thickening and filtration, water supply and reagent circuits. 

The additional volumes of tailings to be produced will necessitate an expansion of the tailings thickening plant, while the tailings will continue to be deposited in an expanded tailings management facility. 

Zinc production is forecast to peak at more than 180 000 t/y after expansion and average an estimated 150 000 t/y from 2020 to 2030, along with a significant increase in lead production. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an incremental post-tax net present value, at an 8% discount rate, of €180-million and an internal rate of return of 22%, with an estimated payback of less than four years from the start of production. 

Value
The cost of the project has increased to €320-million. 

Duration
Subject to receipt of environmental approval in the third quarter of 2017, it is expected that surface construction works will start in the first quarter of 2018 and the expanded zinc plant will be commissioned and ramped up by the end of 2019. 

Latest Developments
Lundin Mining has announced a new cost estimate for its Neves-Corvo ZEP, with costs increasing to €320-million.

This compares with an initial approved budget of €256.5-million for the project, which will double the mine’s production to 180 000 t/y.

The new cost estimate was reported in Lundin’s fourth-quarter and year-end financial results announcement, in which the company also stated that the Neves-Corvo ZEP was 43% complete and that the underground development was on track to contribute to mill feed in the first quarter of 2020.

Key Contracts and Suppliers 
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Lundin Mining Corporation, tel + 1 416 342 5560, fax +1 416 348 0303 or email info@lundinmining.com.