Metals Market Outlook Uncertain, Producers Losing Money - Lundin

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LONDON -(Dow Jones)- The outlook for the metals markets remains uncertain with
an estimated 80% of zinc and over 40% of copper producers losing money after
sustaining capital expenditure is taken into account, Lundin Mining Corp. (
LUN.T) said Thursday.


Lundin has itself suspended its Neves Corvo copper and zinc mine in Portugal
until prices recover, closed its Storliden copper and zinc mine in northern
Sweden, and said it will permanently shut its Galmoy zinc mine in Ireland from
May.


But Lundin said operating plans have been developed for Neves Corvo, its
Zinkgruvan mine in Portugal and its Aguablanca mine in Spain, "that should see
them free cash flow positive at today's prices."


"These will remain under active review during the year to adjust to changing
circumstances," Lundin added. It core focus will now be on Neves Corvo,
Zinkgruvan and the Tenke Fungurume copper-cobalt project, a joint venture in
Congo.


The company said metal prices are expected to stabilize during 2009, with some
potential for minor increases. "The longer-term outlook for metal prices remains
strong and supply difficulties are expected once world growth resumes," Lundin
added.