Boliden Ramps Up Reclamation Provisions by SEK 3.8 Billion for Aitik and Garpenberg Mines

Boliden Ramps Up Reclamation Provisions by SEK 3.8 Billion for Aitik and Garpenberg Mines

(IN BRIEF) In a significant development, Boliden has decided to bolster its provisions for reclamation by SEK 3.8 billion, primarily attributed to ambitious reclamation plans for its Aitik and Garpenberg mines. This decision will trigger an annual depreciation rise of approximately SEK 200 million, with a corresponding negative impact of around SEK 100 million on the company’s financial net starting in 2024, although the fourth-quarter results for 2023 will remain unaffected. Aitik’s forthcoming application for an operating permit has led to the majority of these expanded provisions, reflecting a commitment to the mine’s productivity until 2047, while Garpenberg’s reclamation plan adjustments will extend its life of mine to 2055, as per current Mineral Resources and Mineral Reserves data. Notably, despite the provision increase, Boliden’s net reclamation liability remains unchanged due to a parallel augmentation in assets, and the cash flow impact of reclamation work is primarily expected when mines are eventually closed.

(PRESS RELEASE) STOCKHOLM, 16-Nov-2023 — /EuropaWire/ — Due to more extensive reclamation plans for Aitik and Garpenberg, Boliden’s provisions for reclamation are increased by SEK 3.8 billion. As a result, annual depreciation increases by approximately SEK 200 million and the financial net is negatively affected by approximately SEK 100 million starting in 2024. The result for the fourth quarter of 2023 is not affected. The cash flow impact due to reclamation work mainly only occurs when mines are closed.

Most of the extended provisions for reclamation are related to Aitik soon will submit a new application for an operating permit. In connection with this, the proposed provision for reclamation will be based on the entire life of mine, which today extends until 2047.

“With new permits and improved dam construction, we have created long-term conditions for Aitik to continue to be the world’s most productive copper mine. It also gives us room to both plan and implement reclamation efforts in the best possible way,” says Stefan Romedahl, director Business Area Mines.

In Garpenberg, certain technical adjustments to the reclamation plan for the tailings facility have been made, which affects the now expanded provisions for reclamation. Garpenberg’s life of mine, according to current Mineral Resources and Mineral Reserves, stretches to 2055 given present pace of production.

All in all, this means that Boliden’s provisions for reclamation will be increased by SEK 3.8 billion from today’s SEK 7.4 billion. The Group’s net reclamation liability is not affected due to a corresponding increase in assets. From 2024, the increased assets will lead to increased annual depreciation by approximately SEK 200 million and the increased reclamation liability will also affect the financial net negatively by approximately SEK 100 million per year, as a result of discounting effects. The income statement for the fourth quarter of 2023 is not affected.

The cash flow impact due to reclamation work mainly only occurs when mines are closed.

This information is information that Boliden AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Director Investor Relations, at 08.00 CET on November 16, 2023.

Boliden is a metals company with a focus on sustainable development. Our roots are Nordic, our market global. Our core competence lies within the fields of exploration, mining, smelting and metal recycling. Boliden has around 6,000 employees and annual sales of approximately SEK 85 billion. The share is listed in the Large Cap segment on NASDAQ OMX Stockholm. www.boliden.com

Media Contact:

Klas Nilsson
Director Group Communications
phone: +46 70-453 65 88
klas.nilsson@boliden.com

SOURCE: Boliden Group