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Lundin Mining starts production at Eagle mine, shares rise

Lundin Mining starts production at Eagle mine, shares rise

Shares of Lundin Mining (TSE:LUN) (OMX:LUMI) rose on Wednesday after the company announced the start of concentrate production from its Eagle nickel-copper mine in Michigan. 

Construction at the Eagle mine is now mostly complete, the company said, with the project delivered on budget and ahead of its initial schedule.

The mine is planned to ship the first saleable copper and nickel concentrates during the first half of next month, and is expected to reach full design rates in the second quarter of 2015.

Shares climbed 2.5 percent to C$5.69 on Wednesday, stretching year-to-date gains to almost 24 percent. 

"The Eagle Mine is a significant new, high-quality, low-cost mine, that has been constructed to the highest of safety, environmental and social responsibility standards," said president and chief executive officer, Paul Conibear.

"Our team has done an exemplary job in bringing the mine into production, and we look forward to the operation becoming a significant cash flow generator for the company and a significant contributor to the local and regional economy."

The company said total capital costs from acquisition of the mine to full completion are estimated at just below $400 million.

Mill commissioning at the Eagle mine was completed earlier this month, with continuous production beginning at the end of last week. Production over the first three full years is expected to average about 23,000 tonnes of nickel and 20,000 tonnes of copper contained metal in concentrate, Lundin said.

The Toronto, Ontario-based base metals miner has operations and projects in Portugal, Sweden, Spain and the US. It produces copper, zinc, lead and nickel. 

The company also holds a 24 percent stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo. 

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