Sweden’s Boliden encountered reformation expenses of 358 million Swedish krona (€31 million) in its Q2, related to the restoration of Tara mine in Ireland, Europe’s largest zinc mine. This was in line with previous messages from the company.
The workers at Tara Mines, represented by three separate unions, approved a deal in May for progressive resumption of the mining facility in the next month.
The Boliden-operated establishment located in Co Meath was closed in last July, due to sustained and sizable economic burdens caused by surging energy costs and a decrease in global zinc prices. This resulted in 650 workers being temporarily suspended from work.
Boliden experienced roughly five times increase in their core profits in the second quarter, thanks largely to a one-time insurance payout of 2.4 billion Swedish crowns linked to a smelter fire. They announced this on Friday.
Profits excluding the revaluation of process inventory rose to 4 billion Swedish crowns from April to June.
Lower grading of mined materials, fluctuating metal prices and interrupted productivity at their Tara zinc mine led to recorded profit losses in recent times, in addition to fire damage sustained at the smelter last year.
Increased prices of copper, zinc, gold and silver in the quarter enhanced Boliden’s earnings, but earnings were offset by lower treatment costs and metal premiums.
Despite metal prices picking up in the second quarter, they have slightly declined due to large stock quantities and decreased demand from China. Smelter treatment fees for copper and zinc have drastically decreased.
According to CEO Mikael Staffas, long-term demand appears optimistic but currently, the global concentrate production doesn’t align with the available smelting capacity.
Q2 revenues saw an increase of 23%, totalling 22.75 billion crowns. – Reuters