Dark week for Swedish Mining Company

The North Swedish mining company Boliden has had a bad week. First a fire broke out in Rönnskärsverken smelter outside Piteå on Tuesday night. Then on Tuesday evening a profit warning was issued, mainly because two mines are not doing as well as previously thought. Both things have lowered the share price, reports North Sweden Business.

The fire destroyed an electrolysis plant in the smelter and stopped production at the Rönnskär plant for at least a couple of weeks. The production stoppage will cost Boliden around SEK 85 million per week. The final cost in terms of loss of production and reconstruction will be determined by what is covered by the insurance.

The two of its mines that are performing badly are in Ireland and Finland They have produced lower copper and nickel grades than previously stated. In Ireland, the falling zinc price is causing the mine to make a loss and production is being put on hold indefinitely.

Copper and nickel grades in Finland have been adversely affected by having to stop mining in one area and focus on another area with lower grades. 

"We have screwed up and then we have screwed up in the communication where we could have guided in a better way", says CEO Mikael Staffas to Dagens Industri.

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