Lundin Mining Announces Interruption of Processing Activities at Chapada Mine

TORONTO, Sept. 27, 2020 /PRNewswire/ -- (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") announces that processing activities have been interrupted at the Chapada mine in Brazil. The operation suffered a power outage in the morning of September 27, 2020. When power was restored, the protection system at the operation's main electrical substation failed, resulting in significant damage to all four SAG and ball mill motors.

The Company is assessing the extent of damage to the motors, but early indications are that the motors will need to be removed from site and undergo extensive repair.  The operation has two spare motors. One is on site and available and the second is offsite completing rehabilitation.  The Company is assessing the potential for a staged resumption of processing using these two motors, however full processing rates are not expected to be achievable for an extended period of time. Accordingly, full year 2020 production, cash cost and capital expenditure guidance for the Chapada mine has been withdrawn.

In addition to assessing a staged resumption of processing, the Company will be bringing forward planned maintenance and refocusing mining on waste removal and development activities. 

The Company carries business interruption insurance and will be assessing the applicability of the insurance and the relevant waiting periods in deciding whether to make a claim. There were no injuries or environmental damage.

The Company will provide additional information and updates on the operation's 2020 guidance as appropriate.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on September 27, 2020 at 18:45 Eastern Time.

Cautionary Statement in Forward-Looking Information

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; and the Company's integration of acquisitions and any anticipated benefits thereof. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements.