Boliden production steady in third quarter

Production from the mines and smelters of Boliden (BLS-T) was steady in the third quarter of the year, although mine production of precious metals was significantly lower year-on-year.

Boliden produced 86,800 tonnes zinc in the quarter, up 9% from the comparable quarter of 2004 and up 8% from the second quarter of this year. Operations went smoothly at the Garpenberg mine in southern Sweden and at the company’s northern Swedish mines. A grinding mill breakdown at the Tara zinc mine in Ireland cost Boliden some time, but the mill was running again in mid-July.

At Aitik in northern Sweden, Boliden’s largest copper mine, improved head grades delivered increased copper production compared with the second quarter of the year, but less than in the third quarter of 2004. In all, Boliden mines produced 16,967 tonnes copper in the period, against 18,844 tonnes in the comparable three months of 2004.

Smelter production from Odda in Sweden and Kokkola in Finland was down fractionally year-on-year, at 107,429 tonnes zinc. The Ronnskar and Harjavalta copper smelters produced 88,143 tonnes copper in the same period, down about 2% from the same quarter in 2004.

A shareholder meeting requested by institutional holders representing 32% of the company’s outstanding stock is scheduled for Oct. 21. Shareholders are being asked to approve a new board reflecting the departure of Finnish metal company Outokumpu as a shareholder.

Outokumpu sold its 16% holding in Boliden — 46.7 million shares — in September and Outokumpu executive Risto Virrankoski is resigning as chairman of Boliden’s board in favour of Swedish businessman Anders Ullberg. The shareholders are proposing a slate of four directors, including Ullberg, to replace Virrankoski and two other Outokumpu nominees.