Boliden expands Odda zinc smelter production in 2024

Boliden has been investing in the Odda zinc smelter since 2021, aiming to increase its annual production capacity from 200 to 350 ktonnes. However, due to delays primarily related to the construction of a new roasting facility, the ramp-up to the new production level has been postponed from the fourth quarter of 2024 to the end of the first quarter of 2025. This delay has resulted in an additional cost increase of EUR 100 million for the project. Despite the setbacks, Boliden's total capital expenditures for 2024 are projected to be SEK 15.5 billion, with an estimated SEK 13.5 billion for 2025. The investments include enhancements to electricity supply, quay infrastructure, and the construction of a new sulfuric acid plant, among other facilities. Once completed, the Odda smelter's production capacity is expected to return to 200 ktonnes in early 2025, following a period of limited production due to electrolysis capacity constraints. The anticipated investments are expected to generate an annual EBITDA of EUR 150 million, aligning with Boliden's long-term pricing strategies and current market conditions. The company remains committed to its expansion plans despite the challenges faced, indicating a strong belief in the future profitability of the Odda smelter. A press and analyst conference was scheduled for September 12, 2024, to discuss these developments, led by Boliden's President and CEO Mikael Staffas and CFO Håkan Gabrielsson. The conference aimed to provide further insights into the expansion project and the company's financial outlook moving forward.