Canada-based Lundin Mining has resumed production at its wholly-owned Aguablanca nickel-copper mine in Spain after a landslide caused production to halt in December 2010.

The mine is now expected to reach its full production capacity between October and December of 2012.

The mill at Aguablanca is already treating a considerable ore stockpile at a consistent pace and shipments of the first concentrate are now arriving at the port warehouse.

Heavy rains had led to the collapse of the southwest wall of the open pit mine two years ago, restricting the main access ramp and subsequently halting operations.

Lundin Mining president and CEO Paul Conibear said that the company has successfully executed the recommencement of the mine, which has enabled Lundin to commence production slightly ahead of schedule.

"The operation provides nickel and additional copper production for the company, and is expected to generate good positive cash flows at current metal prices," Conibear added.

The mine is projected to generate 1,000-1,500t of nickel and the same amount of copper in 2012, which is in line with the company’s recently increased production forecast.

Forecasts for 2013 and 2014 remain the same, with production estimated at 5,000t-7,000t of copper and nickel in 2013 and 6,000t-7,000t of copper and nickel in 2014.