Lundin Mining Q4 and Full Year 2012 Production Results

Lundin Mining Q4 and Full Year 2012 Production Results 
TORONTO, ONTARIO -- (Marketwire) -- 01/22/13 -- Lundin Mining
Corporation (TSX:LUN)(OMX:LUMI)  ("Lundin Mining" or the "Company")
reports the following production results for the fourth quarter and
full year 2012: 


 
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Metal Production                                              FY          Q4
(contained tonnes)                                          2012        2012
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  Copper, wholly-owned operations                         63,878      14,224
  Tenke attributable (24%)                                38,172      10,669
  --------------------------------------------------------------------------
Total Copper                                             102,050      24,893
Zinc                                                     122,204      29,161
Lead                                                      38,464       8,353
Nickel                                                     2,398       1,705
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Paul Conibear, President and CEO commented, "We are pleased to
achieve the high-end of our production guidance targets for 2012 at
each of our operations. Zinkgruvan had a particularly successful year
with new records set for production of zinc, lead and copper. Tenke
also set new copper production records as Phase II expanded
facilities came on line. All of our assets are very well positioned
to deliver a solid performance again this year." 
Segmented production and guidance is as follows:  


 
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                                                        2013 Guidance      
                                                   -------------------------
                        Production      Production                   C1 Cost
(contained tonnes)         Results        Guidance      Production     (b,c)
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Copper    Neves- Corvo      58,559   55,000-60,000   50,000-55,000  $1.80/lb
          Zinkgruvan         3,059     3,000-4,00
0     2,500-3,500       
          Aguablanca         2,260     1,500-2,000     4,500-5,000       
          ------------------------------------------------------------------
          Wholly-owned      63,878   59,500-66,000   57,000-63,500         
          Tenke (@24%)      38,172          36,200       44,650(a)  $1.03/lb
          ------------------------------------------------------------------
          Total                                                    
           attributable    102,050  95,700-102,200 101,650-108,150
Zinc      Neves-Corvo       30,006   25,000-30,000   45,000-50,000         
          Zinkgruvan        83,209   77,000-83,000   73,000-78,000  $0.20/lb
          Galmoy (in ore)    8,989     8,500-9,000             nil         
          ------------------------------------------------------------------
          Total            122,204 110,500-122,000 118,000-128,000
Lead      Neves-Corvo           87             nil             nil         
          Zinkgruvan        37,246   34,000-39,000   33,000-36,000         
          Galmoy (in ore)    1,131     1,000-1,100             nil         
          ------------------------------------------------------------------
          Total             38,464   35,000-40,100   33,000-36,000         
Nickel    Aguablanca         2,398     1,500-2,000     5,000-5,500  $5.00/lb
---------------------------------------------------------
-------------------
a. Freeport has provided 2013 sales guidance which has been assumed to      
approximate Tenke's production.                                             
b. Cash costs remain dependent upon exchange rates (EUR/USD: 1.30, USD/SEK: 
6.75) and metal prices (Cu: $3.50, Zn: $0.95, Ni: $8.00, Co: $12.00).       
c. Cash cost is a non-GAAP measure reflecting the sum of direct costs less  
by-product credits.                                                         

 
Operational Commentary 


 
--  Neves-Corvo: Total copper production exceeded the original guidance for
    the year, however overall grade of copper ore was lower than planned due
    to an exceptional quantity of lower grade but profitable "Out of
    Reserve" ore that was encountered and mined but was not part of the
    original mineral reserve estimate. Approximately 42% of the copper ore
    mined in 2012 was Out of Reserve. In the new copper mining zone of
    Lombador, 57% of the material mined was Out of Reserve. Overall for
    2012, Out of Reserve material graded an average of 1.75% copper as
    compared to the Reserve material mined which graded 3.28% copper. Net
    benefits of mining and processing this Out of Reserve material include
    an extended mine life and overall long term higher aggregate revenues.
    Underground drilling will be increased significantly for 2013 to better
    define the extent of mineralization not currently in the reserve
    estimates and mine plans.
    
    Despite the lower than planned feed grades, Neves-Corvo copper plant
    performance was excellent with 88.2% recovery achieved. Ramp-up of the
    zinc plant continued in the quarter, with throughput approximately 75%
    higher than the prior quarter and record quarterly, and annual, zinc
    metal production was generated. 
 
--  Zinkgruvan: As expected, lower zinc and lead grades were realized in the
    fourth quarter, though the impact on metal production was partially
    mitigated by higher volumes processed than the prior two quarters and
    continued high recovery performance in the process plant. Zinc, copper
    and lead grades and plant recoveries met and in some cases were better
    than originally anticipated. Zinkgruvan finished the year with record
    production of zinc, lead and copper metal in concentrate. 
 
--  Aguablanca: Processing operations re-commenced in August, with full
    production achieved earlier than planned in the fourth quarter of 2012,
    resulting in higher than expected nickel and copper metal in concentrate
    production. Grades mined and plant recoveries achieved for both nickel
    and copper were slightly better than expected. 
 
--  Galmoy: Mining production from remnant ores exceeded expectations for
    the year. Mining ceased in the fourth quarter of 2012, though processing
    of stockpiled ore, by a third party processing facility, will continue
    into 2013. The mine closure plan has been approved by regulating
    authorities. 
 
--  Tenke: During 2012, Tenke achieved record mining and production rates
    facilitated by the staged commissioning of Phase II expansion
    facilities. The Phase II expansion is substantially complete, on
    schedule and on budget. By year end, the expanded facilities were
    operating near full Phase II design capacity and as reported by Freeport
    as Operator, overall fourth quarter production of 44,452 tonnes of
    copper cathode was 91% of the expanded annual design capacity of 195,000
    tpa copper cathode. Freeport has provided 2013 metal sales guidance of
    186,000 tonnes of copper cathode and 13,600 tonnes of cobalt (contained
    in cobalt hydroxide product). 

 
Details of operating statistics by mine, by quarter and for the year
follow in the attached table: 


 
2012 Operating Statistics                                                   
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                           Total         Q4         Q3         Q2         Q1
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Neves-Corvo                                                                 
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Ore mined, copper                                                           
 (000 tonnes)              2,507        648        577        638        644
Ore mined, zinc (000                                                        
 tonnes)                     530        178        107        132        113
Ore milled, copper                                                          
 (000 tonnes)              2,512        648        597        634        633
Ore milled, zinc (000                                                       
 tonnes)                     543        181        104        135        123
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Grade per tonne                                                             
  Copper (%)                 2.6        2.2        2.7        2.8        2.9
  Zinc (%)                   7.3        7.1        7.2        7.2        7.6
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Recovery                                                                    
  Copper (%)                88.2       85.6       86.0       90.0       91.1
  Zinc (%)                  71.0       70.5       71.2       72.8       69.6
----------------------------------------------------------------------------
Concentrate grade                                                           
  Copper (%)                23.9       23.6       24.2       23.9       24.0
  Zinc (%)                  47.3       47.0       46.6       48.1       47.3
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Production (contained                                                       
 metal)                                                                     
  Copper (tonnes)         58,559     11,988     14,012     15,950     16,609
  Zinc (tonnes)           30,006      9,533      5,834      7,619      7,020
  Lead (tonnes)               87         39         48          -          -
 
Zinkgruvan                                                                  
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Ore mined, zinc (000                                                        
 tonnes)                     954        251        189        251        263
Ore mined, copper                                                           
 (000 tonnes)                157         40         46         44         27
Ore milled, zinc (000                                                       
 tonnes)                     998        254        216        241        287
Ore milled, copper                                                          
 (000 tonnes)                145         29         48         49         19
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Grade per tonne                                                             
  Zinc (%)                   9.1        8.2       10.1       10.7        7.7
  Lead (%)                   4.4        3.8        4.7        4.8        4.3
  Copper (%)                 2.3        2.5        2.0        2.2        3.0
----------------------------------------------------------------------------
Recovery                                                                    
  Zinc (%)                  91.7       89.2       91.9       93.5       91.8
  Lead (%)                  85.4       84.8       88.0       85.3       83.8
  Copper (%)                91.8       92.6       90.6       91.6       93.4
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Concentrate grade                                                           
  Zinc (%)                  54.1       54.5       54.6       54.5       53.0
  Lead (%)                  74.7       73.4       74.0       76.2       74.9
  Copper (%)                25.1       24.7       24.3       25.9       25.7
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Production (contained                                                       
 metal)                                                                     
  Zinc (tonnes)           83,209     18,703     20,053     24,022     20,431
  Lead (tonnes)           37,246      8,198      8,953      9,747     10,348
  Copper (tonnes)          3,059        673        864        986        536
                                                                            
Galmoy                                                                      
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Ore mined (000                                                              
 tonnes)                     142         15         43          5         79
Ore milled (000                                                             
 tonnes)                     188         19         61         69         39
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Production (contained                                                       
 metal)                                                                     
  Zinc (tonnes)            8,989        925      2,565        331      5,168
  Lead (tonnes)            1,131        116        364         33        618
 
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Operating Statistics                                                        
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                           Total         Q4         Q3         Q2         Q1
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Aguablanca                                                                  
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Ore mined (000                                                              
 tonnes)                     755        368        198        148         41
Ore milled (000                                                             
 tonnes)                     577        368        209          -          -
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Grade per tonne                                                             
  Nickel (%)                 0.5        0.5        0.4          -          -
  Copper (%)                 0.4        0.5        0.4          -          -
----------------------------------------------------------------------------
Recovery                                                                    
  Nickel (%)                81.3       82.8       78.1          -          -
  Copper (%)                91.4       92.9       87.7          -          -
----------------------------------------------------------------------------
Concentrate grade                                                           
  Nickel (%)                 6.8        6.8        6.7          -          -
  Copper (%)                 6.4        6.3        6.8          -          -
----------------------------------------------------------------------------
Production (contained                                                       
 metal)                                                                     
  Nickel (tonnes)          2,398      1,705        693          -          -
  Copper (tonnes)          2,260      1,563        697          -          -

 
About Lundin Mining 
Lundin Mining Corporation is a diversified base metals mining company
with operations in Portugal, Sweden, Spain and Ireland, producing
copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24%
equity stake in the world-class Tenke Fungurume copper/cobalt mine in
the Democratic Republic of Congo. 
On Behalf of the Board, 
Paul Conibear, President and CEO 
Forward Looking Statements 
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the Ontario
Securities Act. Forward-looking statements are subject to a variety
of risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking statements,
including, without limitation, risks and uncertainties relating to
foreign currency fluctuations; risks inherent in mining including
environmental hazards, industrial accidents, unusual or unexpected
geological formations, ground control problems and flooding; risks
associated with the estimation of mineral resources and reserves and
the geology, grade and continuity of mineral deposits; the
possibility that future exploration, development or mining results
will not be consistent with the Company's expectations; the potential
for and effects of labour disputes or other unanticipated
difficulties with or shortages of labour or interruptions in
production; actual ore mined varying from estimates of grade,
tonnage, dilution and metallurgical and other characteristics; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, commodity price
fluctuations; uncertain political and economic environments; changes
in laws or policies, foreign taxation, delays or the inability to
obtain necessary governmental permits; and other risks and
uncertainties, including those described under Risk Factors Relating
to the Company's Business in the Company's Annual Information Form
and in each management discussion and analysis. Forward-looking
information is in addition based on various assumptions including,
without limitation, the expectations and beliefs of management, the
assumed long term price of copper, nickel, lead and zinc; that the
Company can access financing, appropriate equipment and sufficient
labour and that the political environment where the Company operates
will continue to support the development and operation of mining
projects. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
statements. Accordingly, readers are advised not to place undue
reliance on forward-looking statements. 
Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842 
Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565 
Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50