Boliden plans to cut output and jobs at Tara zinc mine, source says

Nyrstar NV

31/01/2024 13:13

By Julian Luk
       LONDON, Jan 31 (Reuters) - Swedish miner Boliden's
 BOL.ST  plans to shrink operations and reduce targeted output
at its Tara zinc mine in Ireland when it restarts this year, a
source close to the matter told Reuters.
    The mine was put on care and maintenance in June after
prices of the galvanizing metal hit a three-year low and Boliden
has begun talks with staff over a planned resumption in the
second quarter of this year.
    Tara is Europe's largest zinc mine and among the biggest
globally, producing more than 300,000 metric tons of zinc
concentrate a year at its peak, Boliden's website says. 
    The restart plan, however, proposes a one-week closure for
the mill every three weeks, 150 job losses and a production
target of 180,000 tons of zinc concentrates a year, down from
198,000 tons last year, the source said.
    Talks are continuing and the mine could restart in the
second quarter at the earliest if agreement is reached, Boliden
spokesman Klas Nilsson said, adding that external market
conditions have not changed significantly since the mine entered
care and maintenance.
    Zinc prices are about 25% lower than a year ago and the
concensus forecast in a Reuters poll of analysts this week
projected a zinc market surplus of 300,000 tonnes in 2024.
    Trafigura-owned Nyrstar  NYR.BR  halted two U.S. zinc mines
late last year because of weak prices and inflation and this
month closed the Budel zinc smelter in the Netherlands. 
    

 (Reporting by Julian Luk
Editing by David Goodman)
 ((julian.luk@thomsonreuters.com; Reuters Messaging:
julian.luk.thomsonreuters.com@reuters.net))