Canadian mining group plans to invest in Portugal

7 February 2011

Lisbon, Portugal, 7 Feb – Somincor, the concession holder on the Neves-Corvo mine in Portugal, over the next three years plans to invest 140 million euros in the Lombador reserve, the chairman of the company, João Carrêlo said last Friday.

After a contract was signed to support investment by Portugal’s investment and export agency AICEP and Canadian group Lundin Mining, the owner of Somincor, João Carrêlo said that the Lombador project had already been included in the final feasibility study, which would imply an investment of 140 million euros and that, in total, investment would reach 190 million euros.

Within the Neves-Corvo mining concession, the Lombador reserve is a mineralised mass containing zinc, lead and silver ores.

The project, which includes opening up 12 kilometres of new ramps and access galleries to the reserve and installation of new equipment, will make it possible to increase annual processing capacity – as of 2013 – for zinc ore from 500,000 tons to 2.5 million tons per year.

Mining of the Lombador reserve will also lead to a 34 percent rise in exports for Somincor, the chairman said from “US$215 million in gross sales,” in 2010 to “an annual average of US$695 million in the period from 2011 to 2017.”

The Lundin Mining Corporation currently has mining operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. (macauhub)