Swedish company Boliden has entered into an agreement with the Australian company Altona Mining to purchase the Kylylahti copper mine and the exploration rights and copper/nickel deposits in the Outokumpu field in eastern Finland for USD 95 million. The agreement is planned to be concluded in October 2014 and is subject to approval by the Finnish Competition and Consumer Authority and the approval of the shareholders of Altona Mining.
“We see several synergies in mining, metallurgy and exploration. The exploration areas are similar to what we experience in Sweden and have potential for additional discoveries. The acquisition will also establish Boliden as a mining company in Finland, where we already are a significant smelting company,” says Lennart Evrell, President and CEO, Boliden.
According to Boliden, the exploration areas acquired are located in proximity to previous mines and copper and nickel deposits. The Kylylahti mine, located 450 km north-east of Helsinki, opened in 2012 and has a capacity of 650,000 tonnes of ore per year. Copper accounts for 80% of the revenues, with gold, zinc and silver accounting for the remainder. The life of the mine is calculated to 2021 based on current mineral reserves.
During the last published 12 months period, ending March 2014, production was 9,000 tonnes of copper, 300 kg of gold, 2,200 tonnes of zinc and 2,100 kg of silver in concentrate. The operating profit during 2013 amounted to USD 18 million. The concentrate is supplied to Boliden’s smelters Harjavalta and Kokkola for refining to finished metals.