Decision to increase backfill capacity in Garpenberg

Rhea-AI Summary

Boliden (BDNNY) has announced a significant investment of SEK 750 million in a new paste facility at its Garpenberg mine, marking the first step towards expanding production from 3.5 to 4.5 million tonnes annually. The facility will improve backfilling operations using a mixture of tailings and binder to stabilize rock and maximize ore tonnage.

The company has submitted a permit application for the production increase to 4.5 million tonnes. The new paste plant will be constructed adjacent to the existing facility to minimize production disruptions, with completion expected in 2026. Further expansion beyond the current 3.5 million tonnes licensed level will require additional developments in mine production, underground development, and ore transportation infrastructure.

The decision follows several years of successful exploration at Garpenberg, resulting in improved access to both Mineral Reserves and Mineral Resources. Concept studies are ongoing to evaluate potential future production increases, which would depend on expansions in mine production, hoisting, processing, and tailings facilities capacity.

Positive

• Major SEK 750M investment demonstrates commitment to growth
• Planned 29% production increase from 3.5M to 4.5M tonnes annually
• Several years of successful exploration improved mineral reserves access
• Strategic facility placement minimizes production disruptions

Negative

• Production increase still pending permit approval
• Additional infrastructure investments required beyond paste facility
• Gradual implementation means delayed full production capacity
• Current production to 3.5M tonnes until permit approval

STOCKHOLM, March 18, 2025 /PRNewswire/ -- In Garpenberg, the mine is backfilled with a mixture of tailings and binder, also known as paste. The aim is to stabilize the rock and maximize ore tonnage, as well as reduce the need for disposal in the tailings. As a step towards gradually expanding production at Garpenberg from 3.5 Mtonnes to 4.5 Mtonnes per year, Boliden has now decided to invest SEK 750 m in a new paste facility.

"Garpenberg is a world-class deposit and the conditions for developing the mine are better than I have ever experienced before. This is a first step and gives us flexibility for the future to optimize production both in the short and long term," says Stefan Romedahl, President Business Area Mines.

In Garpenberg, several years of major exploration successes have meant that access to both Mineral Reserves and Mineral Resources is very good. Studies have therefore been underway for some time on how best to develop the operations. As a first step, a permit application for a production increase to 4.5 Mtonnes has now been submitted and a decision has been made to replace a worn-out paste facility in parallel with increased production capacity. The investment amounts to a total of SEK 750 m and the plant is being built next to the existing one to minimize production interruptions and additional costs for other infrastructure. Most of the investment will be completed in 2026.

However, to reach a production rate of 4.5 Mtonnes per year, further efforts are required, including development of mine production, underground development, ore transportation infrastructure as well as debottlenecking in the concentrator. If permission is granted for the production increase, it is therefore estimated that a gradual increase in production beyond the currently licensed level of 3.5 million tons could take place.

In parallel with the current decisions, concept studies are continuing to investigate the conditions for further future production increases, which in that case will be dependent on expansions of mine production, hoisting, processing and capacity of tailings facilities.

For further information, please contact:
Klas Nilsson
Director Group Communications
+46 70 453 65 88
Klas.nilsson@boliden.com

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

https://news.cision.com/boliden/r/decision-to-increase-backfill-capacity-in-garpenberg,c4120101

The following files are available for download:

https://mb.cision.com/Main/997/4120101/3325544.pdf

Boliden Garpenberg investment press release

 

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SOURCE Boliden

FAQ

How much is Boliden (BDNNY) investing in the new Garpenberg paste facility?

Boliden is investing SEK 750 million in the new paste facility at Garpenberg mine.

What is the planned production increase for BDNNY's Garpenberg mine?

Boliden plans to increase production from 3.5 million tonnes to 4.5 million tonnes per year.

When will BDNNY complete the new paste facility construction at Garpenberg?

The majority of the paste facility construction will be completed in 2026.

What additional developments are needed for BDNNY to reach 4.5 Mtonnes production at Garpenberg?

The expansion requires development of mine production, underground development, ore transportation infrastructure, and debottlenecking in the concentrator.

Why is BDNNY building the new paste facility at Garpenberg?

The facility will stabilize rock, maximize ore tonnage, and reduce tailings disposal needs while supporting production expansion.