Castro Verde, Portugal, July 16, 2024 (Lusa) - Somincor, the concessionaire of the Neves-Corvo mine in the municipality of Castro Verde (Beja) and a subsidiary of the Lundin Mining group, confirmed on Tuesday "exploratory contacts" for the sale of its operation in Portugal.

In a statement sent to the Lusa news agency, Somincor confirmed "the existence of exploratory contacts from companies interested in acquiring the mining operation in Portugal".

"The registered expressions of interest stem from the international relevance of Somincor's operation and the existing productive potential in commitment to the workers, the region and the country," the statement added.

Somincor also said that it had already informed its employees in Neves-Corvo, where it mainly produces copper and zinc concentrates, that Lundin Mining "is evaluating the possibility of selling its position in the European assets".

"Somincor will continue to add value by prospecting for minerals relevant to the energy transition, which contribute to employment, quality of life and local development," he said.

Somincor's statement comes after a report published today by the "ECO" newspaper, which said that Lundin Mining intended to sell the mining company based in the Beja district.

According to the "ECO" report, the bidding phase for the Neves-Corvo mine ends this Wednesday in an operation that will be conducted by the Banque de Montréal.

Founded on 24 July 1980, Somincor is the concessionaire for the Neves-Corvo mine. The mine produces mainly copper and zinc concentrates, as well as silver and lead, and employs around 2,000 people.

The company has been a subsidiary of the Swedish-Canadian group Lundin Mining for almost 20 years. It is the largest zinc mine in Europe and the sixth largest copper mine on the European continent, as well as the largest employer in the region.

According to the 2023 production report and outlook for the three-year period 2024-2026, released earlier this year by Lundin Mining, 108,812 tonnes of zinc and 33,823 tonnes of copper were produced at Neves-Corvo last year.

In addition to Neves-Corvo, Lundin Mining, which has its headquarters in Toronto (Canada), owns the Candelaria and Caserones mines (both in Chile), Chapada (Brazil), Josemaria (Argentina), Eagle (United States) and Zinkgruvan (Sweden).

CYMP/ADB // ADB.

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