Lundin Mining Provides Update on Labour Action at Candelaria
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NEWS RELEASE
Lundin Mining Provides Update on Labour Action at Candelaria
Toronto, October 18, 2020 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin
Mining” or the “Company”) announced today that despite mediation with the Candelaria AOS Union (the “Union”),
which represents approximately 550 workers at its Candelaria operations in Chile , the Company and the Union
have failed to reach an agreement. The Union can legally be on strike commencing October 20, 2020. The
Candelaria Mine Workers Union continues with its labour action which commenced on October 8, 2020.
Lundin Mining holds health and safety as a top priority in everything we do. Illegal and violent actions promoted
under the guise of the legal strike of the Mine Workers Union, and the pending labour action of the Candelaria
AOS Union, puts the safety of our Candelaria workforce at risk. Candelaria operations are currently in the process
of planning for temporary suspension. Critical works will continue to be executed to protect required onsite
personnel, the operation and the environment. The Company sincerely regrets having to take this action and its
impact on our workforce, local community, suppliers, customers and many stakeholders.
Previously provided 2020 production, cash cost and capital cost guidance for Candelaria , should no longer be
relied upon. Lundin Mining is in strong financial position with a net debt position of approximately $124 million,
including cash and equivalents of approximately $222 million, and available credit of approximately $575 million
under its revolving credit facility, as at September 30, 2020.
Candelaria is committed to responsible, respectful, and fair negotiations with the best interests of our workers
and the sustainability of our business in mind. The previous collective agreement with the Candelaria AOS Union
expired on October 5, 2020, after the Union was granted a special extension of the agreement by the L abour
Authority which was set to expire on September 30, 2020. Candelaria and the Union subsequently entered into
a mediation process in which multiple improved offers were presented to the Union leadership.
Lundin Mining will issue further statements as appropriate.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal,
Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.
The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market
Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set
out below on October 18, 2020 at 17:30 Eastern Time.
For further information, please contact:
Mark Turner, Director, Business Valuations and Investor Relations: +1 416 342 5565
Brandon Throop, Manager, Investor Relations: +1 416 342 5583
Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50
Cautionary Statement in Forward-Looking Information
Certain of the statements made and information contained herein is “forward -looking information” within the meaning of applicable Canadian securities laws. All
statements other than statements of historical facts included in this document constitute forwar d-looking information, including but not limited to statements
regarding the Company’s plans, prospects and business strategies; the Company’s guidance on the timing and amount of future production and its expectations
regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any
Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals,
currency exchange rates, and interest rates; the development and implementation of the Company’s Responsible Mining Managemen t System; the Company’s ability
to comply with contractual and permitting or other regulatory re quirements; anticipated exploration and development activities at the Company’s projects; and the
Company’s integration of acquisitions and any anticipated benefits thereof. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”,
“aim”, “intend”, “continue”, “budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expression s identify forward-looking statements.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management,
including that the Company can access financing, appropriate equipment and sufficient labour; assumed and future price of copper, nickel, zinc, gold and other
metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates
will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and
assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management’s experience an d perception of current conditions
and expected developments, these statements ar e inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially from those projected in the forward -looking statements and undue reliance shou ld not be placed on
such statements and information. Such factors include, but are not limited to: volatility and fluctuations in metal and commo dity prices; global financial conditions
and inflation; risks inherent in mining including but not limited to r isks to the environment, industrial accidents, catastrophic equipment failures, unusual or
unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusua lly severe weather; uninsurable
risks; changes in the Company’s share price, and volatility in the equity markets in general; the threat associated with outbreaks of viruses and infectious diseases,
including the novel COVID -19 virus; risks related to negative publicity with respect to the Compa ny or the mining industry in general; reliance on a single asset;
potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the all egation of improper or discriminatory
employment practices, or human rights violations; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates
of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; risks associated with the estimation of Mineral Resources and Mineral Reserves
and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; ore processing efficiency; risks inherent in and/or
associated with operating in foreign countries an d emerging markets; security at the Company’s operations; changing taxation regimes; health and safety risks;
exploration, development or mining results not being consistent with the Company’s expectations; unavailable or inaccessible infrastructure and ri sks related to
ageing infrastructure; counterparty and credit risks and customer concentration; risks related to the environmental regulatio n and environmental impact of the
Company’s operations and products and management thereof; exchange rate fluctuatio ns; reliance on third parties and consultants in foreign jurisdictions;
community and stakeholder opposition; civil disruption; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour
or interruptions in production; uncertain political and economic environments; litigation; regulatory investigations, enforcement, sanctions and/or related or other
litigation; risks associated with the structural stability of waste rock dumps or tailings storage facilit ies; changes in laws, regulations or policies including but not
limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labour, trade re lations, and transportation; climate
change; compliance with enviro nmental, health and safety laws; enforcing legal rights in foreign jurisdictions; information technology and cybersecurity ri sks;
estimates of future production and operations; estimates of operating, cash and all -in sustaining cost estimates; delays or th e inability to obtain, retain or comply
with permits; compliance with foreign laws; risks related to mine closure activities and closed and historical sites; challenges or defects in title; the price and availability
of key operating supplies or services; historical environmental liabilities and ongoing reclamation obligations; indebtedness; funding requirements and availability of
financing; liquidity risks and limited financial resources; risks relating to attracting and retaining of highly skilled employ ees; risks associated with acquisitions and
related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditure s relating to integration and diversion of
management time on integration; the estimati on of asset carrying values; internal controls; competition; dilution; existence of significant shareholders; conflicts of
interest; activist shareholders and proxy solicitation matters; risks relating to dividends; risks associated with business a rrangements and partners over which the
Company does not have full control; and other risks and uncertainties, including but not limited to those described in the “R isks and Uncertainties” section of the
Annual Information Form and the “Managing Risks” section of the Company’s MD&A for the year ended December 31, 2019, which are available on SEDAR at
www.sedar.com under the Company’s profile. All of the forward- looking statements made in this document are qualified by these cautionary statements. Although
the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in f orward-looking information,
there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which may have been used. Should one or more of these risks and uncertainties mater ialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in forward -looking information. Accordingly, there can be no assurance that
forward-looking information will prove to be accurate and forward -looking information is not a guarantee of future performance. Readers are advised not to place
undue reliance on forward- looking information. The forward -looking information contained herein speaks only as of the date of this document. The Company
disclaims any intention or obligation to update or revise forward ‐looking information or to explain any material difference between such and subsequent actual
events, except as required by applicable law.