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Lundin Mining Corporation: Tenke Project Update

08:19 EST Monday, January 26, 2009

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2009) - Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX:LUN)(NYSE:LMC)(OMX:LUMI) is pleased to report that the Tenke copper/cobalt project is expected to enter the commissioning phase in the second quarter of 2009 with a target of producing first copper cathode in that quarter. Full commercial production is forecast in the second half 2009. Please see attached photos showing construction progress: http://media3.marketwire.com/docs/lu...

Commenting on this, Mr. Phil Wright, President and CEO of Lundin Mining, said, "Construction progress is matching world's best practice and we are impressed with the way Freeport are handling this.

"This is a world class project that is now approaching production, benefiting all stakeholders including the equity shareholders, the Government of the DRC and the surrounding communities," Mr. Wright said.

Excellent construction progress is being made under the leadership of Freeport-McMoRan Copper & Gold Inc. ("Freeport"), an onsite work force in excess of 8,000 continue to progress with safety performance on the project equal to world's best in class.

Pre-production mining at Kwatebala has produced an initial stockpile of mill grade ore, the operations work force is continuing to be assembled and trained and startup supplies of diesel, acid and other critical process consumables are on site.

The Company is pleased to report that construction costs to complete the initial phase of the project are expected to be below Freeport's previous capital cost estimate of $1.75 billion. The Company's obligations for cash funding of capital costs for the initial phase of production were completed in November 2008. Lundin Mining's capital requirements for 2009 on Tenke are expected to be less than $40 million covering: prorata working capital; exploration drilling; expansion studies; and other minor costs.

Lundin Mining and Freeport have committed to long term regional infrastructure investments in the DRC at an unprecedented level. The investment in national road upgrades made by a consortium of mining companies assembled by Freeport ahead of the last rainy season working in conjunction with local and national authorities, has been a significant contributor to not only Tenke's construction schedule improvements, but also to facilitating regional trade by dramatically improving travel times between the major population centers in the south of Katanga Province.

Through a $US 140 million financing and technical support agreement with the Congolese state power authority, refurbishment of the Nseke hydro plant and upgrades to the regional transmission system is advancing to significantly improve reliability and overall power available on the grid. The Tenke partners are also contributing to other regional infrastructure including improvements of the border crossing facilities at the DRC/Zambian border aimed at improving transport times for imports and exports.

Project sponsored social investment programs continue to expand including local micro enterprise businesses, agricultural capacity building initiatives, malarial abatement, new medical facilities, and several new schools are now in full operation.

About Lundin Mining

Lundin Mining holds a 24.75% equity interest in the Tenke Fungurume Copper/Cobalt Project, in Katanga Province, Democratic Republic of Congo. Construction of the first phase of operations is nearing completion by operating partner Freeport. Upon completion of this first phase of Tenke development, the mine is expected to produce approximately 115,000 metric tonnes per annum ("tpa") of copper cathode, and 8,000 tpa cobalt.

On Behalf of the Board,

Phil Wright, President and CEO