Tara placed under care and maintenance

Rhea-AI Summary

Boliden's Tara zinc mine in Ireland will be placed under care and maintenance due to a combination of factors, including operational challenges, decline in zinc price, high energy prices, and general cost inflation. The mine is currently cash flow negative and will temporarily cease production, leading to layoffs for approximately 650 employees.

Positive

• The decision to place Tara mine under care and maintenance is aimed at extending the mine's life and ensuring its competitiveness.
• Boliden is actively working to address the operational challenges and improve the conditions for the mine's operation.
• The mine's closure is a temporary measure until the operation's conditions improve.
• The decision is driven by the mine's high costs, decline in zinc price, high energy prices, and general cost inflation.
• Approximately 650 employees will be temporarily laid off due to the mine's closure.
• Boliden is a metals company focused on sustainable development, with expertise in exploration, mining, smelting, and metal recycling.

Negative

• None.

Due to a combination of factors, the Tara mine in Ireland will be placed under care and maintenance. The decision means that production and exploration ceases temporarily at the mine. 

STOCKHOLM, June 13, 2023 /PRNewswire/ -- The Tara zinc mine in Ireland is a high-cost mine with approximately 650 employees. Boliden is working actively to extend the life of the mine in parallel with ensuring its competitiveness. The business is currently cash flow negative, due to a combination of factors including operational challenges, a decline in the price of zinc, high energy prices and general cost inflation. Tara will therefore be placed under care and maintenance until further notice.

The decision means that production at the mine ceases and that the workforce is temporarily laid off until conditions of the operation improve. 

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

For Irish media:
Gavin McLoughlin/Claire Rowley, Drury
gavin.mcloughlin@drury.ie/claire.rowley@drury.ie
+353 86 0353749/ +353 87 2695014

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/997/3786349/2125628.pdf Press release (PDF)

View original content:https://www.prnewswire.com/news-releases/tara-placed-under-care-and-maintenance-301850173.html

SOURCE Boliden

FAQ

Why is Boliden placing the Tara mine under care and maintenance?

The Tara mine is being placed under care and maintenance due to a combination of factors, including operational challenges, decline in zinc price, high energy prices, and general cost inflation. The mine is currently cash flow negative and this decision aims to extend its life and ensure competitiveness.

What will happen to the production and workforce at the Tara mine?

The decision to place Tara mine under care and maintenance means that production and exploration will temporarily cease. The workforce will be laid off until conditions of the operation improve.

How many employees will be affected by the mine's closure?

Approximately 650 employees will be temporarily laid off due to the closure of Tara mine.

What is Boliden's focus and expertise?

Boliden is a metals company with a focus on sustainable development. They specialize in exploration, mining, smelting, and metal recycling.