A US$34-million provision for liabilities arising from the tailings dam failure at the Los Frailes mine in Spain gave Boliden (BOL-T) a loss of US$52.1 million over the second quarter of 1998.
The company ascribed the remainder of the quarterly loss, US$18.1 million, to lower metal prices. Revenue in the second quarter totalled US$265 million, compared with US$304 million in the comparable period in 1997, when the company posted a US$19.7-million profit.
For the first six months of 1998, Boliden lost US$45.8 million, or 44 cents a share, on revenue of US$555 million. In the first half of 1997, the company earned US$37.4 million on revenue of US$589 million.
Boliden’s Spanish subsidiary, Boliden Apirsa, has filed a reclamation plan for the areas affected by the April tailings dam failure. The company expects Los Frailes to return to production by the end of the year, with tailings being placed in the mined-out Aznalcollar open pit.
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