Boliden’s Odda Expansion Project Delayed, Capital Expenditure Guidance for 2025 Updated
Boliden’s ongoing expansion project at the Odda zinc smelter, aimed at increasing annual production from 200 to 350 ktonnes, has encountered delays, particularly at the roasting facility. As a result, the ramp-up to the new production capacity will now begin at the end of the first quarter of 2025, rather than in late 2024 as originally planned. This delay has led to an additional cost of EUR 100 million (approximately $107 million) for the project.
The expansion project at Odda includes multiple improvements, such as enhanced electricity supply, expanded quay infrastructure, a new roasting facility, a sulfuric acid plant, and modernization of the leaching and purification plant, along with the addition of a new tankhouse and expanded foundry. While the majority of the project remains on schedule and is expected to be completed by the end of 2024, the roasting facility's delay has impacted the timeline for reaching full production capacity.
Once the ramp-up begins in early 2025, Odda's production is expected to return to 200 ktonnes per year initially, before gradually reaching 350 ktonnes throughout the year. Despite the delays, Boliden expects the completed investments to generate EUR 150 million (approximately $160 million) in annual EBITDA, in line with previous forecasts, based on long-term zinc price assumptions and current market conditions.
Boliden’s total capital expenditure for 2024 remains unchanged at SEK 15.5 billion (approximately $1.4 billion), and the company has revised its 2025 capital expenditure estimate to SEK 13.5 billion (approximately $1.2 billion).
