Swedish mining company Boliden has pushed back the opening date of its Odda zinc smelter capacity additions due to delays at the roasting facility. The ramp-up to the new production level will now occur at the end of the first quarter of 2025 (Q1 2025), increasing the cost of the project by €100m ($110m).
In 2021, Boliden decided to invest in its Odda zinc smelter with the aim of increasing annual production capacity from 200,000 to 350,000 tonnes. Upgrades included improvements to electricity supply and quay infrastructure, a new roasting facility, a new sulphuric acid plant, expansion and modernisation of the leaching and purification plant, a new tankhouse and expansion of the foundry.
The start of expanded operations was due in the Q4 2024, but the issues at the roasting facility have resulted in the delay.
According to Boliden, the investments at Odda are expected to generate an additional €150m in annual earnings before interest, taxes, depreciation and amortization (EBITDA), based on Boliden’s long-term prices and market conditions.
Mikael Staffas, president and CEO of Boliden, said: “The cost increase is mainly due to the extra time and additional fixed costs incurred” during the ongoing renovation of the roasting facility.
Zinc is primarily used in the galvanising process, which protects iron and steel from rusting. It is important in construction as it extends the life of steel. In recent years zinc has become associated with the energy transition as it can be used to make zinc-ion batteries. Zinc-ion batteries are more thermally stable than lithium-ion batteries, minimising potential fire risks across the battery supply chain.
According to Mining Technology’s parent company, GlobalData, global zinc production is expected to grow by 2% in 2024. China, Peru, Australia, India and the US were the world’s top five producers of zinc in 2023, accounting for 66.2% of global production.
