Lundin Mining confident of expanding

LUNDIN MINING, the Swedish and Canadian-listed exploration company which owns and operates the Galmoy Mine in Co Kilkenny, is confident of increasing its exploration interests in Ireland.

Addressing an investors and shareholders meeting in Dublin yesterday, company president and chief executive Karl-Axel Walpan said that the life of the Galmoy zinc and copper mine — which Lundin acquired last year as part of its merger with Arcon — should be extended with new areas of mineralisation being discovered. He referred to Galmoy as “a good exploration opportunity going forward“.

Lundin’s initial focus, this year, in Ireland will be on the extension of the Galmoy facility and an “aggressive exploration programme” at its Keel Property near Tara. The company is also looking at a number of additional exploration possibilities. Lundin’s overall short-term strategy includes improving its existing operations and acquiring various projects in different stages of development — from early-stage exploration projects to working mines. Some $7m (€5.5m) was invested on exploration projects last year, by Lundin. Most of these were in Sweden, with some in Ireland. Spend on Ireland is set to increase over the next couple of years.

Mr Walpan said that Lundin is also well-placed to take part in the expected consolidation in the zinc mining sector, but not as yet as many mining businesses are so highly valued.

“Zinc is one of the least consolidated sectors in the mining industry. We are currently the eleventh largest zinc producer in the world, so we are in good position to take advantage of that growth,” he said.

Zinc is currently trading at close to $3,500 (€2,782) and has risen by nearly 60% over the last quarter.