Thu Sep 12 05:16:00 UTC 2024: ## Boliden Delays Odda Zinc Smelter Expansion, Increases Project Cost
**STOCKHOLM, Sept. 12, 2024** – Boliden, a Swedish mining and metals company, has announced a delay in the expansion of its Odda zinc smelter in Norway. The company had initially planned to increase the smelter’s annual production capacity from 200 to 350 ktonnes by the end of 2024. However, due to delays in the construction of the roasting facility, the ramp-up to the new production level will now start at the end of the first quarter of 2025.
The delay will result in an additional EUR 100 million in costs for the project, bringing the total cost to an undisclosed amount. Despite the delay, Boliden remains confident that the expansion will generate an additional EUR 150 million in annual EBITDA once fully operational.
“The delay is primarily due to challenges encountered in the roasting facility,” said a Boliden spokesperson. “We are committed to ensuring that the project is completed to the highest standards and that the new facilities operate safely and efficiently.”
While the delay affects the expansion timeline, Boliden emphasizes that the project remains on track for the majority of its components. The expansion includes a new roasting facility, a new sulphuric acid plant, and expansions to the leaching and purification plant, among other upgrades. These facilities are expected to be commissioned by the end of 2024, allowing Odda’s production capacity to return to 200 ktonnes from the first quarter of 2025.
Despite the delay and cost increase, Boliden remains committed to its investment strategy, emphasizing its focus on delivering the project “in a good way.” The company has also announced its capital expenditure guidance for 2024 and 2025, remaining at SEK 15.5 billion and SEK 13.5 billion, respectively.
Boliden will host a press and analyst conference today at 09:00 CEST to discuss the project further.
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