Lundin Mining Corporation ("Lundin Mining" or the "Company") is pleased to announce the closing of the previously announced acquisition of the Kokkola cobalt chemical refinery located in Finland and related sales and marketing business (collectively "Kokkola") from OM Group, Inc.
As previously disclosed, Lundin Mining will hold an effective 24 percent ownership interest in the Kokkola joint venture, with Freeport-McMoRan Copper & Gold Inc. ("Freeport") holding an effective 56 percent ownership interest and acting as operator of the joint venture, and La Générale des Carrières et des Mines (Gécamines), the Congolese state mining company, holding a 20 percent interest. Lundin Mining and Freeport have funded the initial acquisition costs including working capital on a 30%/70% basis, which amounts will be repaid in full prior to any distributions. Additional attributable consideration remains payable over a period of three years, contingent upon the achievement of revenue-based performance targets.
The Kokkola refinery, located on the Baltic Sea in Kokkola, Finland, processes unrefined cobalt and related metals and manufactures advanced inorganic products for use in a variety of applications in fast-growing end-use markets. Kokkola is the world's largest supplier of cobalt chemicals and powders for use in:
- batteries: cobalt raw materials and precursors for rechargeable batteries
- chemicals & ceramics: cobalt inorganic materials for a variety of chemical, catalyst, blue pigment and other applications
- powder metallurgy: cobalt fine powders for the hard metal and diamond tooling industries
Kokkola has been in operation since 1968 and comes with an experienced management team, over 400 employees, and a global sales and marketing footprint that services approximately 500 customers in over 50 countries in Asia, Europe and the Americas. Kokkola has strong growth prospects and a track-record of strong revenue and cash flow generation despite commodity price volatility.
About Lundin Mining
Lundin Mining Corporation is a diversified Canadian base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.
On Behalf of the Board,
Paul Conibear, President and CEO