Name: Tenke Fungurume mine (TFM).

Location: TFM is located in Katanga province, in the Democratic Republic of Congo (DRC), about 175 km north-west of Lubumbashi, the provincial capital.

Controlling Company: Freeport-McMoRan Copper & Gold is the operating partner, holding a 56% interest. Lundin Mining holds a 24% interest and the Congolese State mining company, La Générale des Carrières et des Mines (Gécamines), holds a 20% free carried interest in the project.

Brief History: Construction on openpit and oxide ore processing facilities, designed to produce 115 000 t/y of cathode copper and more than 8 000 t/y of cobalt in hydroxide, started at TFM in late 2006. The copper facilities were commissioned at the end of the first quarter of 2009, and the cobalt hydroxide facilities at the end of the second quarter. By the end of that year, full nameplate capacities for both products were being achieved. Subsequent debottlenecking and plant upgrades have enabled expansion to increase to 132 000 t/y of cathode copper and an estimated 11 000 t/y of cobalt. A Phase 2 expansion of TFM has increased copper production by 50% to about 195 000 t/y copper cathode and to 15 000 t/y of cobalt hydroxide. This is one of several stages of development contemplated, with the ultimate objective to produce more than 500 000 t/y of copper, mining multiple deposits throughout the concession.

Brief Description: TFM’s copper/cobalt deposits comprise one of the world’s largest known copper-cobalt resources.

Mining Method: The Tenke Fungurume operation mines copper/cobalt oxide ores using openpit mining techniques.

Products: Copper and cobalt.

Major Infrastructure and Equipment: Continuous miners are used to break the ore and drill-and-blast is used in the waste rock. Conventional loaders and trucks transport the ore to the crusher or stockpiles and the waste to dumps. Larger mining equipment is currently being introduced to enable increased mining rates.

Tailings facilities are located to the north of the process plant site and a first raise of the initial facility was completed during 2010. The current tailings storage location is large enough to handle the majority of currently proven and/or probable reserves. Other adjacent areas have been identified to provide life-of-mine storage capacity. A potential location for a future sulphide concentrator has been identified, as have potential heap-leach pad areas.

Geology/Mineralisation: The Tenke Fungurume copper/cobalt deposits are typical of those that comprise the Central African Copperbelt. The Copperbelt is located in a major geological structure called the Lufilian Arc, a 500 km fold belt that stretches from Kolwezi, in the southern DRC, to Luanshya, in Zambia. The deposits of the Tenke Fungurume district are located at the northernmost apex of the arc. The arc formed between the Angolan plate to the south-east and the Congo plate to the north-west during the late Neoproterozoic age, about 650-million to 600-million years before present (Ma). Rocks in the arc are exposed in a series of tightly folded and thrust anticlines and synclines, generally trending east-west to south-east-north-west in the southern DRC. The Tenke Fungurume group of sediment-hosted copper cobalt deposits occurs near the base of a thick succession of sedimentary rocks belonging to the Katanga system of the Proterozoic age 1050 to 650 Ma.

The older rocks of the basement complex belonging to the Kibara Supergroup, form the framework within which the Katangan sediments were deposited and consist of granitic rocks and metamorphosed sediments. Sedimentation took place in shallow intracratonic basins bounded by rifts. A series of cratonic events of Pan African age 650 Ma to 500 Ma resulted in the extensive deformation of these rocks. The principal tectonic event is referred to as the Lifilian Orogeny and this led to the formation of the Lufilian Arc. All of the major Zambian and Congolese copper/cobalt deposits are located along this 500-km-long arcuate structure, which extends from Kolwezi, in the DRC, to Luanshya, in Zambia. The Tenke and Fungurume deposits are located in the northernmost apex of the arc.

Reserves: Total proven and probable reserves as December 31, 2012, were 141.08-million tonnes, grading 2.9% copper and 0.4% cobalt.

Resources: Total measured resources as at December 31, 2012, were 140.37-million tonnes, grading 2.9% copper and 0.3% cobalt; indicated resources were 404.68-million tonnes, grading 2.5% copper and 0.2% cobalt; and inferred resources were 283.12-million tonnes, grading 1.9% copper and 0.2% cobalt.

Prospects: Freeport continues to engage in drilling activities, exploration analyses and metallurgical testing for further oxide plant debottlenecking and oxide heap leach on mixed and sulphide ores to evaluate the full potential of the highly prospective minerals district at Tenke. These analyses are being incorporated in the evaluation of several further phases of expansion.

Contact Person: Lundin Mining senior VP corporate development, Julie Lee Harrs.

Contact Details:
Lundin Mining, tel +1 416 342 5560, fax +1 416 348 0303, email info@lundinmining.com, website http://www.lundinmining.com,

F

reeport-McMoRan Copper & Gold, tel +1 602 366 8100,
email fcx_communications@fmi.com, and website http://www.fcx.com

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