Canadian Company Buying UP Precious Metals Mine

Posted at: 06/13/2013 10:30 AM | Updated at: 06/13/2013 10:31 AM

MICHIGAMME TOWNSHIP, Mich. (AP) - Canada's Lundin Mining Corp. says it's buying an Upper Peninsula nickel and copper mine from a subsidiary of London-based Rio Tinto PLC for $325 million.

Lundin Mining announced Thursday that it expected to close next month on the purchase of Rio Tinto Eagle Mine LLC in Michigamme Township northwest of Marquette. The deal requires regulatory approvals.

Toronto-based Lundin Mining says the mine holds high-quality deposits with low technical and processing risk. Construction is more than half done, and production is expected to start late next year.

Rio Tinto officials said in February they were delaying production because of the economic situation and volatile commodities markets.

Rio Tinto discovered the so-called Eagle deposit in 2002 and announced its decision to build in 2010.

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