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Lundin Mining sees big jump in production next year

27th November 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canada-headquartered Lundin Mining is forecasting a big increase in production, with its copper output expected to rise by 20%, its zinc production by 15% and nickel production forecast to increase by more than 25%.

The increased 2020 copper production guidance of 272 000 t to 296 000 t is based on higher grades at Candelaria and full-year contributions from Chapada, which Lundin bought this year.

The Candelaria mine, in Chile, is forecast to produce 165 000 t to 175 000 t, Chapada, in Brazil, is expected to produce 51 000 t to 56 000 t, while the Eagle mine, in the US, Neves-Corvo, in Portugal, and Zinkgruvan, in Sweden, will make up the balance.

Total copper production for 2021 is guided at 294 000 t to 318 000 t and 2022 production at 292 000 t to 316 000 t.

“The three-year outlook has improved primarily on the inclusion of the Chapada copper/gold mine, as well as refinement of Candelaria’s production profile,” said Lundin Mining in its latest operational outlook, published on Tuesday.

Zinc production is forecast to increase to a range of 172 000 t to 187 000 t, climbing by a further 30% in 2021 as the Neves-Corvo zinc expansion project (ZEP) comes on line.

The ZEP will begin a phased ramp up in 2020, pushing the mining operation’s zinc output up from 95 000 to 105 000 t in that year, to 155 000 t to 160 000 t in 2021 and 2022.

Nickel, which is mined at the Eagle operation, is forecast to increase to a range of 15 000 t to 18 000 t in 2020 through to 2022.

Lundin Mining’s capital expenditure guidance for 2020 is $620-million, of which $155-million is earmarked for the remining preproduction capital for the ZEP.

“The ZEP continues to advance in accordance with the schedule and budget for the phased startup strategy and production during 2020. The preproduction capital cost estimate, including contingency, of $430-million (€360-million) remains unchanged,” said the company.

Lundin Mining’s 2020 exploration spend of $65-million includes $55-million on in-mine and near-mine targets, while the remaining $10-million will be spent on advancing activities at exploration-stage projects, primarily in South America.

Edited by Creamer Media Reporter

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