Boliden Zinc and Copper Output Rises After Lundin Mine Acquisitions

Swedish Boliden

Boliden zinc and copper output increased in the first quarter as the Swedish mining and smelting group benefited from the 2025 acquisitions of Somincor in Portugal and Zinkgruvan in Sweden. The additions lifted concentrate production sharply from a year earlier, although operational disruptions limited quarter-on-quarter momentum.

Boliden zinc and copper output growth was strongest on a year-on-year basis. Zinc-in-concentrate production rose by 54% to 89,200t, while copper-in-concentrate output increased by 53% to 28,824t.

Boliden zinc and copper output still faced several short-term constraints. Seismic activity halted operations at Garpenberg in Sweden, poor ground conditions weighed on Tara in Ireland, and heavy rainfall affected Somincor in Portugal.

The first-quarter result shows the impact of Boliden’s larger asset base. Acquisitions increased scale, but operational reliability, grade control and smelter performance remain central to the company’s 2026 metals outlook.

Zinc Growth Masks Garpenberg and Tara Disruption

Boliden’s zinc-in-concentrate output rose strongly from a year earlier because Somincor and Zinkgruvan added new mine volumes. However, production fell by 3% from the previous quarter, showing that acquired capacity did not fully offset operational headwinds.

Tara produced 17,413t of zinc-in-concentrate, down 19% from a year earlier. Poor ground conditions and other operational challenges weighed on the Irish mine.

Garpenberg output fell by 22% to 19,329t after seismic activity disrupted operations in mid-March. Boliden expects production to resume gradually in the second quarter, but the disruption has materially reduced the site’s 2026 outlook.

The company now expects Garpenberg milled volumes of around 1.5mn t in 2026, down from previous guidance of 3.7mn t. It forecasts 2.3mn t of milled volumes in 2027 and lowered Garpenberg’s zinc grade guidance to 2.7% from 2.9%.

Refined zinc production also weakened. Output fell by 2% on the year to 107,931t, mainly because production at Odda in Norway dropped by 19%.

Odda’s performance was affected by two unplanned roaster stoppages and the delayed start-up of another roaster. The decline shows how smelter reliability can offset stronger mine-side additions.

The zinc market backdrop remains tight in concentrate terms. Global refined zinc demand fell by 7% from the previous quarter because of seasonal patterns, but was unchanged from a year earlier. Global zinc concentrate production rose by 4% year on year, while spot treatment charges fell from $35/t to $0/t during the quarter.

Falling treatment charges are important for zinc smelters and miners. They indicate that concentrate availability remains tight relative to smelter demand, shifting bargaining power toward miners with available feedstock.

Copper Concentrate Tightness Supports Strategic Value

Boliden’s copper-in-concentrate output rose by 53% from a year earlier to 28,824t. The increase was mainly driven by the addition of Somincor and Zinkgruvan.

Quarter-on-quarter copper output slipped by 3% from 29,690t. Boliden attributed the decline mainly to slightly lower copper grades at Aitik and lower production at Somincor.

Aitik remained the company’s core copper asset. Milled volumes were 9.8mn t, broadly in line with a year earlier, but lower copper grades weighed on output.

However, Aitik showed operational strengths. Boliden reported high mining rates and better recoveries than in the first quarter of 2025 because of less oxidised ore.

At the smelter level, copper cathode production rose by 12% on the year to 41,567t, although it fell by 2% from the previous quarter. Harjavalta performed better than a year earlier, when strikes in Finland and a lack of suitable concentrates weighed on operations.

Casted copper anode production rose by 4% year on year to 107,714t. This supports Boliden’s integrated copper position, linking mine output with smelting and refining capacity.

Boliden also highlighted tightening copper concentrate conditions. Global refined copper consumption fell by 10% from the previous quarter and by 1% from a year earlier, but concentrate production was stable quarter on quarter.

Spot treatment charges continued to fall, and Chinese benchmark contracts settled at zero treatment and refining charges. This underlines structural tightness in the copper concentrate market, even when refined demand indicators are mixed.

Nickel output was mixed. Nickel-in-concentrate production rose by 20% on the year to 3,282t and increased by 30% from the fourth quarter, supported by higher grades at Kevitsa.

Refined nickel performance moved lower. Nickel-in-matte production at Harjavalta fell by 17% on the year to 8,425t because of an unfavourable feed mix and higher pyrite consumption.

Boliden left 2026 guidance unchanged for all mines except Garpenberg. That means the main revision affects zinc and silver more than copper or nickel.

The Metalnomist Commentary

Boliden’s quarter shows how acquisitions can lift headline production while operational risks still shape real supply. The sharper signal is in treatment charges: zinc and copper concentrate markets remain tight enough that mine reliability and smelter feed quality now carry strategic value.