Lundin Mining receives letter from MINISTRY OF MINES drc pursuant to
PREVIOUSLY announced mining project review
Vancouver, February 19, 2008 (TSX: LUN; OMX:
LUMI; NYSE: LMC) Lundin Mining Corporation (“Lundin Mining”
or the “Company”) advises that today it received a copy of a letter from
the Ministry of Mines, Government of the Democratic Republic of Congo
(“the Government”), addressed to Tenke Fungurume Mining
S.A.R.L. (“TFM”), an entity in which the Company has an equity
investment of 24.75%.
In the letter, the Ministry
of Mines requests that further discussions take place regarding the TFM mining
partnership with Gecamines, the DRC state-owned mining company.
Discussions have been requested in respect of such matters as the quantum of
transfer payments; Gecamines percentage share ownership in TFM; Gecamines
involvement in the management of TFM; regularization of certain issues under
Congolese law; and the implementation of social plans. A response is
requested by February 20, 2008.
The Company believes that its
agreements with Freeport-McMoRan Copper & Gold Inc.
(“Freeport-McMoRan”) and TFM’s agreements with the Government
are legally binding, that all associated issues have been dealt with fully
under Congolese law and that the overall fiscal terms previously negotiated and
incorporated into the Amended and Restated Mining Convention exceed the
requirements of the Congolese Mining Code. Discussions are being held
between the Company and Freeport-McMoRan, who is the operator in accordance
with the project’s agreements and who holds a 57.75% interest in the
project.
An appropriate response will
be made to the Ministry of Mines. Further information will be provided as
and when available.
On behalf of the Board
Phil Wright,
President and CEO
About Lundin Mining
Lundin Mining Corporation is a
rapidly growing, diversified base metals mining company with operations in
Portugal, Spain, Sweden and Ireland. The Company currently has six mines
in operation producing copper, nickel, lead and zinc. In addition, Lundin
Mining holds a development project pipeline which includes the world class
Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo and
the Ozernoe zinc project in Russia. The Company holds an extensive
exploration portfolio and interests in international mining and exploration
ventures.
For further information, please
contact:
Catarina Ihre, Manager,
Investor Relations: +46-70-607-9263
Sophia Shane, Investor
Relations North America: +1-604-689-7842
Certain of the statements made and information contained herein is
“forward-looking information” within the meaning of the Ontario
Securities Act or “forward-looking statements” within the meaning
of Section 21E of the Securities Exchange Act of 1934 of the United States.
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
companies’ 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
and zinc; that the companies can access financing, appropriate equipment and
sufficient labour and that the political environment where the Companies
operate 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.
