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Boliden to restart its Tara zinc mine in Ireland

Boliden will restart production at its Tara zinc mine in Ireland in the 3rd quarter after being closed for almost one year, the Swedish mining group said on Friday.

Tara will gradually increase production to reach full capacity from January 2025, Boliden said.

The mine was suspended considering that last June after costs of the galvanizing metal hit a three-year low.

It is Europe's largest zinc mine and produced more than 300,000 metric lots of zinc focuses a year. Tara's. suspension, together with disruptions at significant Australian mines. had actually triggered a tighter supply of zinc focuses.

A contract has been reached between worker's unions and. local management which makes it possible for the procedure of resuming the mine. at Tara on a more economically sustainable basis, Boliden said. in a statement.

The deal includes staff cuts. Boliden said it will book a 30. million euro ($ 32 million) restructuring cost for the cuts and. other organisational changes in the second quarter.

The overall hit to results in the quarter, including. previously revealed costs for the care and upkeep, will be. 43 million euros.

Zinc costs got 11% up until now this year to improve. profitability of zinc operations and inspired restarts of. mothballed projects.

Glencore Plc announced a ramp-up in its. Nordenham smelter of Germany and Nyrstar likewise planned. to restart its Budel smelter in the Netherlands.

Tara's reboot, along with expansion of Boliden's Odda. smelter in Norway, is set to increase European zinc supply.

(source: Reuters)