Lundin restarts production from Aguablanca mine

TORONTO Mon Aug 27, 2012 6:28pm EDT

TORONTO Aug 27 (Reuters) - Canadian base metal miner Lundin Mining Corp said on Monday it has restarted production from Aguablanca, nearly two years after heavy rains caused a landslide at the nickel-copper mine in Spain.

The miner suspended operations at the site in December 2010 following the landslide. Lundin said last year it would restart operations at Aguablanca in the third-quarter of 2012.

Toronto-based Lundin said full production is also expected in the fourth-quarter following a ramp-up in operations at the site.

Aguablanca is forecast to produce between 1,000 and 1,500 tonnes of nickel and a similar volume of copper in 2012. It is expected to produce between 5,000 and 7,000 tonnes of both nickel and copper in 2013, and between 6,000 and 7,000 tonnes of both metals in 2014.

The miner said it will provide more detail on production costs at the site later this year, once full production rates have been achieved.