July 29, 2011 / 10:29 PM / in 6 years

UPDATE 1-Lundin Mining Q2 profit up 36 pct

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July 29 (Reuters) - Lundin Mining reported a 36 percent rise in quarterly profit as high copper prices offset lower grades of copper ore.

Net profit was $57.7 million, or 10 cents per share, compared with $42.3 million, or 7 cents per share in the year-ago quarter.

Sales rose marginally to $184.0 million.

The company said copper production was below its expectations due to low grades of copper mined at its Neves-Corvo mine in Democratic Republic of Congo (DRC).

The company produced 29,891 tonnes of copper from its Tenke mine in DRC.

Average copper price was 30 percent higher than last year. London Metal Exchange copper rose 28 percent to average about 9206.85 a tonne in the second quarter.

Base metals are being buffeted by the global economic outlook, and U.S. and euro zone sovereign debt in particular, during the seasonal summer slowdown when buying from top consumer China is typically weak.

Shares of the Toronto-based miner closed at C$7.18 on Friday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)

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