Decision to adjust dam construction in Aitik

Rhea-AI Summary

Boliden announced significant changes to dam construction methods at its Aitik facility, driven by ongoing geotechnical investigations. To enhance tailings disposal safety, the company plans to invest SEK 5 billion over the next two years, with SEK 1 billion allocated for 2022. While production won’t be affected, current dam structures require strengthening, delaying further heightening and deposition until appropriate measures are completed. Total group investments are now expected to exceed SEK 11 billion for the year, up from just over SEK 10 billion.

Positive

• Total investments increased to over SEK 11 billion for 2022 from SEK 10 billion.
• Focus on dam safety aligns with international industry standards.

Negative

• Current dam structures need strengthening, delaying future heightening and tailings deposition.

BOLIDEN, Sweden, April 11, 2022 /PRNewswire/ -- Ongoing geotechnical investigations in Aitik show the need to eventually change to a new dam construction method to ensure long-term disposal of tailings. In addition, there is a need to strengthen the current dam construction to meet the best international industry standards. The investments over the next two years are expected to lead to increased investments of a total of SEK 5 billion, of which SEK 1 billion in 2022.

- A high level of dam safety is always our top priority. The new direction naturally entails challenges in the short term, but it also creates long-term opportunities in Aitik and a clear direction for how the business can be developed going forward, says Mikael Staffas, President and CEO of Boliden.

Normally, the dam structures at Aitik's tailings pond are built and filled in line with production. In connection to ongoing geotechnical surveys for future dam heightening, areas with poorer soil conditions than previously estimated have been identified. Additional dam heightening and deposition of tailings against dams in these areas has therefore been suspended. In a first step, existing dam structures will now be strengthened and certain infrastructure will need to be moved. This is estimated to take about two years, after which dam heightenings and deposition in this area can be resumed.

Production in Aitik is not expected to be affected during this time as tailings can continue to be deposited in other parts of the tailings pond. The measures depend on environmental permits and other approvals, but work can be started prior to the permitting process.

For 2022, the total investments in the Group are now expected to increase from previously communicated just over SEK 10 billion to just over SEK 11 billion.

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 Group Communication, at 08:00 CET on April 11, 2022.

For further information, please contact:

Klas Nilsson, Director Group Communications, phone: +46 70-453 65 88

Mail: klas.nilsson@boliden.com

Due to this communicated press release, a telephone conference for analysts will be held today at 09.00 Stockholm time zone. From Boliden, Mikael Staffas, President and CEO and Håkan Gabrielsson, CFO, participate.

To participate, please call 5 minutes before the opening of the conference:

•   from Sweden +46 856642651
• from United Kingdom +44 3333000804
•   from United States +1 6319131422

PIN Code: 69409035# 

The presentation will be held in English

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 an annual turnover of around SEK 70 billion. The share is listed in the Large Cap segment on NASDAQ OMX Stockholm.  

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/boliden/r/decision-to-adjust-dam-construction-in-aitik,c3543838

The following files are available for download:

https://mb.cision.com/Main/997/3543838/1562592.pdf

Press release (PDF)

 

View original content:https://www.prnewswire.com/news-releases/decision-to-adjust-dam-construction-in-aitik-301522532.html

SOURCE Boliden

FAQ

What are Boliden's investment plans for Aitik in 2022?

Boliden plans to invest SEK 5 billion over the next two years for dam safety at Aitik, with SEK 1 billion allocated for 2022.

How will the dam construction changes affect Aitik's production?

Production at Aitik is not expected to be affected during the dam strengthening process as tailings can be deposited in other areas.

What is the current total expected investment for Boliden in 2022?

The total expected investment for Boliden in 2022 is now projected to be just over SEK 11 billion.

Why is Boliden changing its dam construction method?

The change is necessary to address poorer soil conditions revealed by geotechnical investigations and to ensure compliance with safety standards.

When will Boliden resume tailings deposition at Aitik?

Resumption of tailings deposition at Aitik will occur after the necessary dam strengthening measures are completed, which is expected to take about two years.