Boliden's Swedish Copper Smelter Set for $463 Million Investment

Boliden has made a strategic decision to invest SEK 4.8 billion ($463 million) in constructing a new tank house at Rönnskär. This investment aims to gradually increase the production of copper cathodes and precious metals to full capacity by the second half of 2026. Commencing in 2024, the investment will kickstart the construction process, partially funded by a potential insurance payout capped at SEK 3.4 billion. The new plant, operating at a capacity of 230 kilotonnes, aligns with previous capabilities and falls under existing environmental permits.

Additionally, within the Boliden Area, investments are earmarked for dewatering and paste facilities to utilize tailings as backfill material in the Kankberg, Renström, and Maurliden mines. This initiative extends production capabilities in the Boliden Area for approximately ten years, extending operations until the late 2030s. With a total investment of SEK 2.5 billion, the majority of funds will be allocated between 2024 and 2026. Initial tests of the new technology demonstrate significantly enhanced environmental performance, with a permit application set to be submitted imminently.

Boliden's ongoing investment initiatives in Aitik, the Boliden Area, and Odda are progressing according to previously communicated timelines. Both the Aitik and Boliden Area projects are on track within the initially outlined investment parameters. However, the expansion project in Odda has faced challenges, primarily due to underestimated complexities in integrating new and existing facilities, as well as delays in key component deliveries. Consequently, there's an increased cost projection of EUR 100 million, with approximately half already incurred in 2023, bringing the total investment for the expansion to EUR 950 million.

Anticipated investments for Boliden in 2024 are now expected to reach SEK 15.5 billion, marking a SEK 1.5 billion increase from previous estimates. The bulk of this increment, around SEK 1 billion, is attributed to the new investment in Rönnskär, with the remaining SEK 500 million allocated to Odda. The recently approved investment in the Boliden Area is estimated to amount to approximately SEK 500 million in 2024, consistent with earlier guidance.

In a notable technological breakthrough, Boliden has successfully developed a process where slag generated from existing metal production in smelters can be transformed into supplementary cementitious material. This innovation has the potential to reduce the climate impact of cement production by approximately 95% compared to traditional methods. Moreover, it enables the extraction of additional metals. Initial project trials have validated product and production performance, corroborated by established entities in the cement industry. Patent applications have been filed, and preliminary studies on commercializing the product, including a potential production facility with a 250,000-ton capacity per year, are currently underway, expected to conclude in the first quarter of 2025.