Lundin Mining Authorized by EIA to Extend Operations at Its Chile-based Copper Mine

Source: Lundin Mining Corporation

Canada's Lundin Mining Corporation has been granted an environmental impact assessment (EIA) for its Chile-based mining facility, Candelaria copper mine.

This authorization is a milestone for Lunding mining, as it now enables the company to extend operations for The Candelaria 2030 project, which consists of numerous improvements, including a new Los Diques tailings facility.

Lundin Mining has been engaged in the mining industry since 1994, extracting copper, zinc, lead and nickel in Chile, Portugal, Sweden, Spain and the U.S.

Paul Conibear, CEO of the company, believes that the EIA authorization is the pinnacle of an extensive process, and he thanked the Chilean authorities as well as his employees for making this approval possible.

The next step for the company is to obtain sectorial permits, to relocate some road sections, and to complete infrastructure construction to commence the Los Diques dam civil works in 2016. Lundin Mining is also carrying out projects to extend the existing tailings storage sites to align with the commissioning of the tailing facility expected in 2018.

Most mines in Chile are located in the Norte Grande region covering most of the Atacama Desert. Situated in Atacama, the Candelaria mine is rich in copper reserves, thus an operations extension at this site is indeed a key milestone for the company.

Overall, the mining industry is one of the pillars of Chile's economy. Chile dominates in the global copper ore and concentrate trade. In 2014, Chile exported 2,625 thousand tonnes of copper ores and concentrates totaling 16,817 million USD. Its primary trading partner was China, where it supplied 32% of its total copper ore and concentrate exports in value terms, accounting for 25% of China's total imports.

From 2007 to 2014, Chile was a net exporter of copper ores and concentrates. During this period, exports consistently exceeded imports in value terms. However, in physical terms, the difference was less pronounced.

Peru and Australia were among the other main global suppliers of copper ores and concentrates in 2014. However, the fastest growing exporters from 2007 to 2014 were Spain (+108% per year) and Mexico (+26% per year).

Chile's top 5 trading partners in 2014 were China, Japan, India, the Republic of Korea and Brazil, with a combined 86% share of Chile's copper ore and concentrate exports. The share of China increased significantly (+9 percentage points), while the share of Japan illustrated negative dynamics (-2 percentage points).

Source: World: Copper Ores And Concentrates - Market Report. Analysis and Forecast to 2020