Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Boliden said on Wednesday it would almost double its zinc production at the Odda smelter in Norway, after posting second-quarter operating profits below expectations.
The Swedish mining and smelting group, one of Europe’s biggest zinc producers, said it would invest 700 million euros ($825 million) to expand Boliden Odda to an annual production capacity of 350,000 tonnes of the metal.
Boliden, originally due to announce second-quarter earnings on Thursday, also said its operating profit rose to 2.79 billion Swedish crowns ($320.8 million) from 1.80 billion a year earlier.
Analysts had expected a profit of 3.11 billion crowns, according to a Refinitiv poll.
The company, which operates mines and smelters in Sweden, Finland, Norway and Ireland, said the bulk of the Odda investment would be carried out during 2022 and 2023.
($1 = 8.6959 Swedish crowns)
($1 = 0.8482 euros)
(By Helena Soderpalm; Editing by Kirsten Donovan)
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