November 1, 2011 / 9:40 PM / 6 years ago

UPDATE 1-Lundin says expansion at mine in DRC to proceed

(In U.S. dollars unless noted)

TORONTO, Nov 1 (Reuters) - Lundin Mining (LUN.TO), which owns a minority stake in the massive Tenke Fungurume mine in Africa, said on Tuesday that majority stakeholder Freeport-McMoRan (FCX.N) has approved a planned expansion at the copper-cobalt mine.

Lundin said in a statement that Freeport’s board has approved the expansion, which will result in a 50 percent increase in the mine’s copper output, once it is complete in 2013.

The $850 million expansion project will boost annual output from the mine in the Democratic Republic of Congo by about 150 million pounds (68,000 tonnes) of copper cathode.

Funding obligations for expansions at Tenke are split 70:30 between Freeport and Lundin. However, subject to metal prices being strong, it is expected that the capital cost for the expansion will be funded out of surplus cash from Tenke’s operations, Lundin said. (Reporting by Euan Rocha; editing by Rob Wilson)

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