Tara Mines owner sees profits almost double
Tara Mines owner Boliden said it expected to reach peak production at the mine in 2028, following extensive upgrade works.
Publishing its quarterly results, the Swedish company said Tara, which is Europe's only zinc mine, continued to ramp up its production in the first quarter after it reopened in October.
Boliden said full-year milled volume production for 2025 was expected to be 1.8 Mtonnes. Tara's full production target is 2.2 Mtonnes per annum and it is expected to be reached by 2028, the company said.
The company operates six other mines and five smelters in the Nordic region and Portugal. Its operating profit nearly doubled to 3.06 billion Swedish crowns (€281m) in the quarter.
Tara Mine was closed in June 2023, with 650 workers being laid off. A deal was reached between a group of unions representing workers and Boliden to resume operations last year, which saw the number of workers reduced to 400.
Boliden also mines base metals such as copper, gold and silver, does not have any direct mining or smelting operations in the United States and said the impact of the announced global tariffs had so far been limited.
"But the big effect on us is the indirect effect," chief executive Mikael Staffas said in an interview with Reuters.
Global metal prices and currencies have fluctuated more than usual after the end of the first quarter, resulting in deteriorating base metal prices and a weaker dollar, Staffas said in the earnings statement, adding strong precious metal prices had only partially offset those effects.
Copper prices are still at a better level than a year ago, and Boliden is positioned to operate smoothly even if the conditions worsen, he said.
JPMorgan analysts said in a research note given the company's higher capital expenditure plans and headwinds like weaker prices, currency effects and scheduled smelter maintenance, they saw a "significant downside" to consensus estimates for second-quarter operating earnings.
Boliden raised its capital expenditure forecast to 15.5 billion crowns this year, instead of the previously targeted 14 billion, reflecting the recently closed acquisition of the Somincor mine in Portugal and the Zinkgruvan mine in Sweden.
Additional reporting Reuters
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