NEW YORK Lundin Mining Corp. said it has acquired Rio Tinto Nickel Co.s Eagle nickel and copper mine for $315 million.
"We are very pleased to close the acquisition of this high-quality asset early, and especially pleased to see the high level of activity on site already as construction ramps up," Lundin president and chief executive officer Paul Conibear said in a July 17 statement.
The Toronto, Ontario-based company purchased the mine for $250 million and paid an additional $65 million for project expenditures from Jan. 1 to the acquisitions closing, Lundin said. Rio Tinto Nickel, based in London, is a subsidiary of global mining company Rio Tinto Plc.
The construction of the Eagle project, located in the Upper Peninsula of Michigan, is more than 50 percent complete, according to Lundin. Lundin has already secured a contract for mine site coarse ore storage, the company said.
Lundin expects production to begin in the fourth quarter of 2014, although it said that "opportunities for schedule acceleration are being explored."
Production over the first three full years is expected to average about 23,000 tonnes of nickel and 20,000 tonnes of copper annually, the company said previously (amm.com, June 13).