Zinkgruvan

Operator
Lundin Mining

Location
Sweden

Stream
ag

Primary Metal
zn

Project Overview

Zinkgruvan is an underground zinc-lead-silver mine owned and operated by Lundin Mining and located approximately 250 kilometers southwest of Stockholm, Sweden. This low-cost mine was acquired by Lundin Mining from Rio Tinto in 2004 and has been producing on a continuous basis since 1857. The Operation consists of an underground mine, processing plant and associated infrastructure, producing zinc, lead and copper concentrates.

Zinkgruvan employs a conventional crushing, grinding and flotation milling process producing zinc and lead concentrates which are shipped to smelters in Europe. A separate 0.3 Mtpa copper treatment line in the processing plant was commissioned during 2010. This line was further modified during 2011 to allow it the flexibility to treat zinc-lead ore as well as copper ore. Overall mine capacity is 1.35 Mtpa.

The Zinkgruvan orebodies are dominated by sphalerite and galena and are generally massive, well banded and stratiform. Remobilization of galena and silver has occurred in response to metamorphism and deformation and is most pronounced in the lead-rich western extension of Nygruvan and in the Burkland area. Copper stockwork mineralization has been identified in the structural hanging wall of the Burkland deposit. Chalcopyrite is the main copper mineral and occurs as coarse disseminations and patches within a marble host rock.

Stream Details

Date of Contract 08-Dec-04
Term Life of Mine
Stream 100% of silver production
Upfront Consideration $78M
Per Unit Production Payment $4.60 (annual inflation adjustment based on CPI)
Cost Quartile Third

For more information on the Zinkgruvan mine, please visit: www.lundinmining.com (opens in new tab)