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Revitalizing Industry: Tara Mine Reopens on Solid Financial Ground


Leo Gonzalez

May 6, 2024 - 07:23 am


A New Chapter in Mining: Reopening Tara Mine on a Robust Financial Foundation

STOCKHOLM, May 6, 2024 -- Following a period of uncertainty and pause, the mining industry is set to witness the revival of the well-known Tara mine, as an agreement has been concluded between the workforce's unions and the local management. This marks a significant step towards the mine's reopening on a more financially sustainable footing.

In July 2023, the mine famously ceased its operations and entered into a care and maintenance mode, triggered by a series of challenges. Notably, the slump in zinc prices, an elevated overall cost structure, and operational issues were at the forefront of the shutdown. However, recent negotiations have resulted in an accord to significantly enhance operational methods and productivity, paving the way for its resurgence.

Optimized Mining for Sustainable Operations

The recently forged agreement stipulates comprehensive terms, including the roll-out of a refined mining plan. This strategic blueprint is aimed at curtailing the distances over which materials must be transported while simultaneously pushing the envelope on metal yield. Initially, the output is projected to touch an annual rate of 1.8 million tonnes. Further, the plan involves a complete overhaul of the organizational design, scaling back on the workforce, and the adoption of innovative and efficient working techniques.

Remarkably, these landmark changes are anticipated to significantly diminish the Tara mine's regular cash cost to around 100 US cents per pound of Zinc. This figure paints a contrast to the steeper costs of 137 US cents per pound witnessed in the first half of 2023. The driving forces behind this cost reduction include the optimistic forecast on energy prices and the decrease in benchmark treatment charges, along with anticipated improvements in productivity conditions.

Financial Implications of Restorative Efforts

Inevitably, the path to revival comes with its financial burdens. The transition phase is expected to carry one-off restructuring charges estimated at around 30 million euros. This financial hit will be reflected in the second quarter financials of 2024, alongside the previously disclosed care and maintenance costs pegged at 13 million euros per quarter. Collectively, the operation's profit for the quarter is projected to sustain a staggering decline amounting to 43 million euros.

At the heart of these restructuring expenses lies the streamlining of the workforce to approximately 400 full-time equivalent positions. This marks a drastic reduction from the pre-transition tally of over 600 employees. Furthermore, the restructuring encapsulates significant organizational transformations and a shift in the work culture. Returning employees will be reabsorbed into their roles gradually, starting from the third quarter of 2024, supported by a comprehensive onboarding and retraining program.

The Road to Full Production

Expectations have been set for the gradual increment in production activities starting in the fourth quarter of 2024. Full-scale production is then slated to commence in January 2025. Projections for the second half of 2024 indicate an operating profit of about negative 25 million euros each quarter. This is comparatively higher than the loss of 13 million euros per quarter sustained during the care and maintenance period.

To augment the momentum of restarting Tara mine, exploratory efforts targeting the extensive Tara Deep deposit will be revived. This move signals a commitment to the long-term viability of the mining project and anticipates the discovery and extraction of further valuable resources.

Engaging with the Community and Stakeholders

For additional details and insights into this groundbreaking development in the mining sector, interested parties are encouraged to reach out to Klas Nilsson, the Director of Group Communications. Mr. Nilsson is available for comments and can be contacted through standard communication channels.

Boliden's Vision for a Sustainable Metal Future

At the heart of Boliden's operational ethos is its vision to establish itself as the most environmentally conscious and esteemed metal supplier globally. The Europe-based entity prides itself on producing sustainable metals. Boliden’s operational landscape encompasses a vast array of industries such as exploration, mines, smelters, and recycling. Abiding by the core tenets of care, courage, and responsibility, Boliden thrives through the collective effort of its approximately 6,000 employees and boasts an annual turnover approximating 80 billion Swedish Krona. As evidence of its significant footprint in the marketplace, Boliden's stock is traded on the Large Cap segment of NASDAQ OMX Stockholm.

Additional Resources

For more information on Boliden and its robust array of activities within the mining sector, the public is invited to visit their official website at

In Conclusion

The meticulous restructuring of the Tara mine represents a beacon of resilience and innovation in the mining industry. The strategic revisions in operations and employment set a precedent for mines around the globe. With financial sustainability at its core, the Tara mine is poised to emerge stronger and more efficient than ever before, navigating the complex dynamics of the global metal market. As the mine gears up to contribute anew to Europe's metal supply, its management and stakeholders look forward to a future built on sustainable practices and financial stability.

Note: This article has been meticulously pieced together to ensure that all stated facts and figures are as accurate as possible up to the date of publication. The information provided reflects the most recent developments relating to the Tara mine and Boliden's broader operational goals in the realm of sustainable mining and metal production. For any further clarification, please refer to the contact information provided or visit the Boliden website.

SOURCE: Boliden

Safety and Welfare Measures

Following the reopening announcement, Boliden has placed a strong emphasis on safety protocols and the overall welfare of its employees. The company's stringent measures adhere to several international standards, underscoring its commitment to protecting the workforce and the environment. Well-being programs, continuous training, and state-of-the-art personal protective equipment are just a few examples that demonstrate Boliden's dedication to a secure and health-conscious workplace.

Market Response and Industry Impact

The decision to relaunch Tara mine has been met with a variety of responses from market analysts and industry observers. Many view it as a positive indication of the sector's resilience. Additionally, the mine's reopening could signal broader economic benefits such as job creation and the stimulation of ancillary local businesses. Experts are also paying close attention to Boliden's strategy, looking for insights that might forecast trends in the broader mining industry.

Technological Advancements and Efficiency Gains

Boliden's quest for productivity and cost-effectiveness has led it to invest in cutting-edge mining technology. These advancements are expected to complement the organizational reforms and bolster efficiency across the mining operations. One notable area is automation, which could significantly streamline processes and reduce the reliance on manual labor, thus enhancing safety and precision in the mine's day-to-day functions.

Environmental Considerations and Sustainability

Sustainability remains a cornerstone of Boliden's operational philosophy. The company's approach extends well beyond compliance with environmental regulations. It aims to minimize its carbon footprint and ecological impact through various initiatives. These include optimizing energy usage, prioritizing waste reduction, and exploring renewable resources. As the Tara mine reopens, these environmental considerations are expected to be at the forefront of operational planning and execution.

Community Engagement and Social Responsibility

Beyond its commitment to environmental stewardship, Boliden has a long-standing tradition of engaging with local communities and stakeholders. The company recognizes the importance of fostering strong relationships with the people and areas where it operates. Efforts include community outreach programs, educational initiatives, and investments in local infrastructure. These endeavors not only serve to build trust and goodwill but also ensure that Boliden's activities contribute positively to the social fabric of its surroundings.

Forward-Looking Statements

As Boliden looks to the future, the company's leadership remains focused on exploring new opportunities and confronting challenges with strategic foresight. Press releases and official statements often include forward-looking thoughts, outlining expectations for production levels, financial health, and overall company trajectory. These projections are guided by current market conditions, industry trends, and internal analyses. While specific outcomes cannot be guaranteed, Boliden's forward-looking approach highlights its proactive and goal-oriented mindset.

More About Boliden

Boliden's history is rich with accomplishments and milestones that have shaped the mining industry. Interested parties can delve deeper into the company's story, including its founding, evolution, and the people who have made it what it is today. Historical highlights, financial reports, and governance structures are presented in an accessible and informative manner on the Boliden website, providing a comprehensive picture of this industry leader's legacy and current standing.

Investor Relations and Shareholder Information

For those with a financial stake or interest in Boliden's market performance, a wealth of resources is available. The Investor Relations section of the company's website offers up-to-date stock information, earnings reports, investor presentations, and more. There is also information about shareholder meetings, corporate actions, and dividend policies. Boliden is committed to maintaining transparency and facilitating clear communication with its investors and the broader financial community.

Career Opportunities and Employee Development

With the revitalization of Tara mine and ongoing operations across various segments, Boliden presents a myriad of career opportunities. The company's commitment to employee development is evident in its offerings of training programs, career advancement prospects, and a dynamic work environment. Those interested in joining the Boliden team are encouraged to review the available roles and contemplate a future with an organization that values its human capital as a key component of its success.

In summary, the reopening of the Tara mine signifies a notable chapter in Boliden's journey and the wider mining industry. With a strategic approach to management, financial stability, and a steadfast commitment to sustainability and social responsibility, Boliden stands out as a forward-looking company that is well-positioned to face the future with confidence. The Tara mine's comeback story is thus not just a tale of resurgent operations, but also a narrative of innovation, resilience, and prolonged success.