Boliden sees $22m earnings hit from Kevitsa fire

The Kevitsa open-pit mine in northern Finland. Credit: Boliden

Swedish mining and smelting group Boliden said on Friday it anticipated a 200 million crown ($22 million) hit to operating earnings as a result of last week’s fire at a crushing station at its mine in Kevitsa, Finland.

Boliden said in a statement it expected earnings to be affected in its Mines business in the second and third quarter, while it saw no impact on its Smelters unit.

“Post-fire inspections are still ongoing and the cause of the fire is yet to be determined,” the company said.

“Damage to the heavy equipment such as crusher and feeder is limited while there is extensive damage to the electrical and ventilation systems.”

The company said production at the Kevitsa concentrating plant had been restarted, with mobile crushing plants set up and production now at almost 90% of normal capacity.

“A preliminary assessment is that the repairs will take two to three months,” it said.

($1 = 9.1430 Swedish crowns)

(By Johannes Hellstrom; Editing by Niklas Pollard)

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