Lundin Mining Adjusts Annual Copper and Zinc Production Guidance

Lundin Mining

Canada-based Lundin Mining has revised its full-year production guidance for copper and zinc, reflecting operational challenges and shifting market conditions. Despite a rise in third-quarter copper production, the company reported a decline in zinc output, prompting a recalibration of its production targets.

Copper Production Sees Mixed Results

Lundin Mining tightened its annual copper production guidance to 366,000-389,000t, down from the previous range of 366,000-400,000t. In the third quarter, Lundin achieved a copper output of 99,855t, an 11% increase year-on-year. This brought the total copper production for the first nine months of 2023 to 267,576t, a remarkable 27% rise compared to the same period last year.

Chile's Candelaria mine played a pivotal role, contributing 50,018t of copper in Q3, thanks to higher head grades. However, this increase was partially offset by disruptions at other assets:

Labour action in August at the Caserones mine in Chile.

A ground fall at the Eagle East mine in the U.S. during the second quarter.

Lower grades at the Neves-Corvo mine in Portugal.

These operational challenges led to a downward revision of production guidance at these sites.

Zinc and Nickel Production Declines

Lundin’s annual zinc production guidance was adjusted to 190,000-199,000t, reduced from the earlier projection of 195,000-215,000t. While output at Sweden's Zinkgruvan mine increased, it was counterbalanced by lower production at Neves-Corvo due to rehabilitation and development impacting mine sequencing. Refined zinc production in Q3 was down 6.4%, with 46,610t produced, bringing the year-to-date total to 139,758t, a 4% decrease compared to 2022.

Nickel production suffered a significant setback, plummeting nearly 80% year-on-year to 893t in the third quarter, largely due to reduced mining rates at Eagle East.

Molybdenum Production from Caserones Acquisition

Following the mid-July 2023 acquisition of the Caserones copper-molybdenum mine, Lundin began producing molybdenum. However, third-quarter output was 693t, approximately 37% lower than the same period last year.

These adjustments highlight Lundin Mining’s proactive approach to navigating operational hurdles while maintaining a focus on long-term growth and stability in a volatile commodities market.