Boliden Delays Odda Zinc Smelter Expansion, Increases Project Costs by €100 Million

Boliden Delays Odda Zinc Smelter Expansion, Increases Project Costs by €100 Million

(IN BRIEF) Boliden has announced a delay in its Odda zinc smelter expansion project, pushing the ramp-up of production from 200 to 350 ktonnes to the end of Q1 2025 due to construction delays at the roasting facility. This setback will result in an additional €100 million in costs. Despite the delay, most aspects of the project remain on track, and the expansion is expected to generate €150 million in annual EBITDA. Boliden’s capital expenditures are forecasted at SEK 15.5 billion for 2024 and SEK 13.5 billion for 2025.

(PRESS RELEASE) STOCKHOLM, 12-Sep-2024 — /EuropaWire/ — Boliden has provided an update on its ongoing expansion project at the Odda zinc smelter, which aims to increase annual production from 200 to 350 ktonnes. While most investments are on track, delays in the construction of the roasting facility have pushed the ramp-up of production to the end of the first quarter of 2025, instead of the initially planned fourth quarter of 2024. This delay has resulted in a project cost increase of €100 million.

The investment, which includes improvements to electricity supply, quay infrastructure, a new roasting facility, and expansions in several processing plants, is expected to generate €150 million in annual EBITDA once completed. Full production is anticipated to be reached gradually throughout 2025.

Boliden’s total capital expenditures remain aligned with previous guidance, estimated at SEK 15.5 billion for 2024 and SEK 13.5 billion for 2025.

A press and analyst conference led by President and CEO Mikael Staffas, alongside CFO Håkan Gabrielsson, will be held today to discuss the update. The conference can be followed via webcast or telephone, with details available on Boliden’s website.