Boliden to strengthen its copper position in Europe

Boliden has decided to invest approximately SEK 400 million in efficiency enhancement and expansion at the Harjavalta copper smelter in Finland. Anode production is expected to increase by 30 per cent and cathode production by 20 per cent per year. The investment also enables unit costs to be lowered by around 20 per cent. In addition, a feasibility study of a possible expansion of the Aitik copper mine in Sweden is now being initiated with a view to increasing ore tonnage milled from 18 million tonnes to 33 million tonnes a year.

“An expansion could double Aitik’s copper production, thereby enhancing the material flow balance to our copper smelters. By investing in Harjavalta, we will also be improving efficiency and further consolidating Boliden’s position as one of Europe’s leading copper producers,” says Jan Johansson, President and CEO of Boliden. The extensive mineralisation at the Aitik mine provides scope for an expansion from today’s ore tonnage milled of 18 million tonnes to 33 million tonnes per year. The expansion will boost the production of copper concentrate, enhancing productivity and lowering unit costs. The project will, moreover, include both a higher gold recovery and the potential extraction of molybdenum. The feasibility study is due to be completed during the autumn of 2006 and production could begin within some three years of a positive investment decision. The upgrading and expansion of the copper smelter in Harjavalta will mainly take the form of investments in more efficient technology and increased capacity at both the smelter and the tank house. Production capacity at the smelter in Harjavalta will increase from 165,000 tonnes to 210,000 tonnes of anode copper, while production at the tank house in Pori will increase from 126,000 to 153,000 tonnes of cathode copper per year. The greater part of the excess anode copper produced at the Harjavalta smelter will continue to be processed at the tank house in Rönnskär. Standardisation of the copper anodes will also ensure a more efficient and flexible production flow between Harjavalta and Rönnskär, improving the integration. To supply the increased copper production in Harjavalta, copper concentrate will initially come from external mines. The finished copper will be sold to customers in Europe, Boliden’s principal market. Existing environmental permits are sufficient to cover the planned capacity expansion in Harjavalta. The expansion project is due to start in January 2006 and the anticipated production launch is set for the beginning of 2008. For more information, please contact: Jan Johansson, President and CEO, Boliden AB, tel: +46 (0)8 610 1602, +46 (0)70 555 02 02 Ulf Söderström, Senior Vice President of Communication, Boliden AB, tel: +46 (0)8 610 15 57, +46 (0)70 618 95 95