Higher provisions for future reclamation of Aitik and Garpenberg

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Boliden AB: Increased Provisions for Future Reclamation of Aitik and Garpenberg

STOCKHOLM, Nov. 16, 2023 /PRNewswire/ -- Due to more extensive reclamation plans for Aitik and Garpenberg, Boliden's provisions for reclamation are increased by SEK 3.8 billion. As a result, annual depreciation increases by approximately SEK 200 million and the financial net is negatively affected by approximately SEK 100 million starting in 2024. The result for the fourth quarter of 2023 is not affected. The cash flow impact due to reclamation work mainly only occurs when mines are closed.

Most of the extended provisions for reclamation are related to Aitik soon will submit a new application for an operating permit. In connection with this, the proposed provision for reclamation will be based on the entire life of mine, which today extends until 2047.

"With new permits and improved dam construction, we have created long-term conditions for Aitik to continue to be the world's most productive copper mine. It also gives us room to both plan and implement reclamation efforts in the best possible way," says Stefan Romedahl, Director Business Area Mines.

In Garpenberg, certain technical adjustments to the reclamation plan for the tailings facility have been made, which affects the now expanded provisions for reclamation. Garpenberg´s life of mine, according to current Mineral Resources and Mineral Reserves, stretches to 2055 given present pace of production.

All in all, this means that Boliden's provisions for reclamation will be increased by SEK 3.8 billion from today's SEK 7.4 billion. The Group's net reclamation liability is not affected due to a corresponding increase in assets. From 2024, the increased assets will lead to increased annual depreciation by approximately SEK 200 million and the increased reclamation liability will also affect the financial net negatively by approximately SEK 100 million per year, as a result of discounting effects. The income statement for the fourth quarter of 2023 is not affected.

The cash flow impact due to reclamation work mainly only occurs when mines are closed.

For further information, please contact:

Klas Nilsson, Director Group Communications, phone: +46 70-453 65 88, klas.nilsson@boliden.com

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 Investor Relations, at 08.00 CET on November 16, 2023. 

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 annual sales of approximately SEK 85 billion. The share is listed in the Large Cap segment on NASDAQ OMX Stockholm. www.boliden.com

The following files are available for download:

https://mb.cision.com/Main/997/3876733/2433483.pdf

Press release

 

 

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SOURCE Boliden

FAQ

What are the reasons for Boliden's increased provisions for reclamation?

Boliden's provisions for reclamation are increased due to more extensive reclamation plans for Aitik and Garpenberg mines.

How will the increased provisions affect Boliden's financials?

The increased provisions will lead to annual depreciation increases by approximately SEK 200 million and negatively affect the financial net by approximately SEK 100 million starting in 2024.

What is the impact on Boliden's cash flow?

The cash flow impact due to reclamation work mainly occurs when mines are closed, and the extended provisions for reclamation are related to Aitik soon submitting a new application for an operating permit.

What are the changes in the reclamation plans for Aitik and Garpenberg?

Aitik will submit a new application for an operating permit, and Garpenberg has made certain technical adjustments to the reclamation plan for the tailings facility, which affects the expanded provisions for reclamation.