Boliden has announced an investment of Skr4.8bn ($463.5m) in a new tank house at its Rönnskär copper smelter in Skelleftehamn, Sweden.

The move is expected to ramp up the production of copper cathodes and precious metals at the smelter, reaching full capacity by the second half of 2026.

The investment is anticipated to be partially offset by a potential insurance payout of up to Skr3.4bn.

Boliden plans to begin investing in the new facility in 2024. The plant will have production capacity of 230 kilotonnes (kt), matching the previous output of the smelter, which faced a fire incident a year ago.

This capacity expansion is approved under the existing environmental permit.

Furthermore, Boliden unveiled a Skr2.5bn investment plan for the Boliden Area to enhance dewatering and paste facilities, facilitating the utilisation of tailings as backfill material in the Kankberg, Renström and Maurliden mines.

This move extends production in the Boliden Area for nearly ten years, reaching until the late thirties.

Boliden president and CEO Mikael Staffas said: "All of our major investment projects are on schedule and are now approaching commissioning, which is very pleasing. Through these, both Aitik and Odda are future-proofed for the foreseeable future.

“It also gives us the opportunity to look ahead and now we present several decisions that create a corresponding situation for Rönnskär and the Boliden Area. In addition, we are announcing a technical breakthrough that has the potential to become a new and significant revenue stream for our smelters.”

Boliden has also updated its investment guidance for 2024, now projecting expenditures to reach Skr15.5bn. This represents an increase of Skr1.5bn from prior forecasts.

Around Skr1bn of the revised amount has been earmarked for the new Rönnskär tank house and Skr500m for enhancements at the Odda zinc smelter in Norway.

In June 2023, Boliden partially restarted its Rönnskär copper smelter after suspending production because of the fire.