lundin mining website

This is from the Investment section of Lundin Minings Website.

Investments

Investments in projects in co-operation with partners or as joint ventures are part of Lundin Mining’s strategy. With a global view the company actively seeks promising projects at early to advanced stages. Although zinc discoveries are in focus, opportunities in metals such as copper and gold are also being evaluated as they arise. In 2005, Lundin Mining acquired 19.9 per cent of Union Resources Ltd. and in early 2006 approximately 10 per cent of Sunridge Gold Corp.

Union Resources Limited
In August 2005, Lundin Mining acquired a 19.9 per cent holding in the Australian exploration company Union Resources Limited. Lundin Mining’s total investment is approximately USD 3.4 million. The company has obtained two seats on the board of Union Resources.

In 2000, Union Resources discovered one of the world’s largest known undeveloped resources of zinc, the Mehdiabad project, and owns 38 per cent of the project. Mehdiabad is located in central Iran. The deposit, which also contains lead and silver, is comparable in size with other giant projects such as Century in Australia and Red Dog in Alaska, USA.

Union Resources has entered into an agreement with Itok, a private Iranian company and joint venture partner, with the objective of acquiring Itok’s share of the project. Upon completion, Union Resources will hold 50 per cent of the Mehdiabd project.

Feasibility studies are expected to be completed in the first six months of 2006. First run economics suggest an operating cost well within the lowest quartile of producing zinc mines globally, with possible production volumes of 500,000 tonnes per annum of zinc metal and 180,000 tonnes per annum of lead and silver concentrates. The project could potentially supply 5 per cent of global zinc demand.

The project enjoys the support of the Iranian government.