Boliden buys mines for 14 billion

Boliden The mining company Boliden is buying two European mines from Lundin Mining.

The mines are Neves-Corvo in Portugal and Zinkgruvan in Askersund municipality in Närke, Sweden.

The purchase price is set at SEK 15.9 billion, of which 14.3 is to be paid now. The purchase will be partly financed through a new share issue.

"We believe that we have paid a price that makes it favourable for our shareholders," Boliden CEO Mikael Staffas told Dagens Industri TV.

Boliden is currently a major customer of Lundin Mining. A large part of the production in Zinkgruvan is already shipped to Boliden's zinc smelter.

Boliden has, among other things, a large mine in Aitik in Gällivare municipality in Norrbotten and a smelter in Skellefteå in Västerbotten.

Lundin Mining writes in a press release that the money from the sale will strengthen the balance sheet and support the growth plans in South America.

Lennart Håkansson

editor@northswedenbusiness.com