01-05-2025
- Business
- Irish Independent
Prolonged Tara Mines closure led to €91m loss last year
Owned by Swedish giant Boliden, it is one of the largest zinc mines in the world and the largest in Europe.
Operations there were suspended in summer 2023 after a surge in energy costs and lower zinc prices globally left it unable to continue production without incurring significant losses. Most zinc is used to galvanise steel, and demand was also hit by weak construction activity.
It cost Boliden about €1m a week to keep the mine under care and maintenance. The loss posted in 2024 followed a €67.5m loss in 2023.
A deal was reached with trade unions last year to reopen the mine. That resulted in about 160 voluntary redundancies at Tara, as well as a plan to return to full production within seven months.
Newly-filed accounts for Tara Mines Holdings reveal that the cost of the voluntary redundancy scheme was €30m.
Production began to ramp up at the end of last year and has continued since. Despite global economic uncertainty, future prices for zinc have continued to rise on the London Metal Exchange for contracts out to the end of 2026.
'Revenue generation for 2024 was limited due to the temporary suspension, so the impact of market factors including the price of zinc, smelting treatment charges and the US dollar exchange rate had less of an impact on the results for the year ended December 2024,' the accounts for Tara Mines say.
They note that the average London Metal Exchange price of zinc was up 5pc last year versus 2023, but the average price of lead decreased by 3pc. The US dollar exchange rate strengthened against the euro in the same period.
Michelle Bennett, the general manager of Tara Mines, said the group is pleased to have resumed operations after a challenging 18 months.
'We are continuing to make progress on ramping up operations and I'd like to thank our employees for their efforts, which have helped to place the business on a positive trajectory,' she said.
'The current geopolitical uncertainty, and its indirect effects on metal prices, is a reminder that it is important we continue to focus on the factors that we can influence. That includes safe, stable and efficient production, and to build for the future of Tara, which includes continuing with our exploration work on Tara Deep.'
The group is engaged in exploration for mineral deposits with the aim of extending the life of the mine. Current ore reserves indicate a mine life through 2033.
Revenue at Tara Mines last year was €10.1m, compared to €97.8m in 2023. This relates to two shipments of zinc in December as the mine's operations resumed. It mined and milled 156,000 tonnes of ore in 2024.
