Boliden’s Zinc Output Down 35% in 2Q Due to Tara Mine Suspension

Swedish metals producer Boliden reported a significant drop in zinc output for April-June, with a year-on-year decline of over 35%. This reduction is primarily due to the suspension of operations at its Tara zinc mine in Ireland last year.

Boliden's second-quarter zinc in concentrate production totaled 37,627 tonnes, marking a 35.4% decrease from the previous year and a 5% decrease from the previous quarter. Overall zinc production for the first half of the year reached 77,355 tonnes, down 35.2% year-on-year.

The significant year-on-year decline in zinc concentrate production is attributed to the Tara mine — Europe's largest zinc mine with a capacity of over 2 million tonnes per year of ore for zinc and lead concentrate production — being placed on care and maintenance in July 2023. This decision followed financial losses driven by weak zinc prices, high energy costs, and inflation. The mine is anticipated to ramp up production later this year, with output expected to reach 1.8 million tonnes per year from the first quarter of 2025.

Boliden noted a 4% quarterly and 2% yearly increase in global demand for refined zinc.

Boliden operates five mining areas: the Swedish Aitik copper mine, Boliden Area and Garpenberg zinc mines, Finnish Kevitsa copper and nickel mine, and the Tara mine.

Copper production saw a slight year-on-year increase to 22,647 tonnes, while nickel output surged by 41% to 2,980 tonnes due to improved grade and recovery at Kevitsa.

"While I believe that the long-term demand looks very good, in a short-term perspective the market is now characterized by a global concentrate production that does not quite meet the available smelter capacity. This of course affects treatment charges negatively," said Boliden’s Chief Executive Mikael Staffas.