Boliden's Strategic Acquisition: Strengthening Metal Production Through Somincor and Zinkgruvan

Boliden Finalizes the Acquisition of Somincor and Zinkgruvan

On April 16, 2025, Boliden, a prominent player in the mining industry, completed its acquisition of Somincor (Neves-Corvo) and Zinkgruvan mines. This consolidation marks a pivotal moment for Boliden, as these assets will bolster its capabilities in zinc and copper production. The agreement with Lundin Mining, announced back in December 2024, involved a substantial cash-outlay totaling USD 1.40 billion. The purchase price was set at USD 1.30 billion, calculated on a debt- and cash-free enterprise value basis as of August 31, 2024, adjusted for related costs.

The acquisition is poised to double Boliden's zinc concentrate output, while also significantly enhancing its copper concentrate production. According to Mikael Staffas, President and CEO of Boliden, this strategic move not only solidifies the company’s position as a leader in the European base metals sector but also initiates immediate value generation from these well-invested operations.

This acquisition comes at a time when demand for base metals is surging. Copper is critical for renewable energy technologies and electric vehicles, while zinc is essential for galvanization and corrosion resistance. By integrating Somincor and Zinkgruvan, Boliden aims to take advantage of this growing demand and operational synergies, further establishing its market-leading position.

Financing for the acquisition was executed through a bridge loan and a directed share issue, which successfully raised approximately SEK 3.75 billion for Boliden. While the bridge loan will initially support the acquisition, Boliden plans to refinance this through adjustments in its dividend policy as proposed to its Annual General Meeting.

Looking ahead, Boliden is committed to expanding opportunities at these new sites. The integration of these mines is expected to provide long-term benefits, helping to enhance operational efficiency and productivity. Staffas emphasized that coupled with existing operations, the company will diligently pursue strategies aimed at sustainable development and exploration of new growth avenues.

In conclusion, Boliden's recent acquisition acts as a catalyst for growth in the mineral resources sector, reinforcing the vital role of copper and zinc in the evolving global economy. The successful consolidation also reflects Boliden’s proactive approach to adaptation and innovation within a rapidly changing market landscape, marking it as a significant player to watch in the coming years.