Boliden, a prominent Swedish mining company, has received confirmation that its primary insurance provider has fully accepted responsibility for the insurance claim related to the June 13, 2023 fire at the Rönnskär smelter. The Rönnskär facility, a key producer of copper, zinc, lead, and other metals, suffered substantial damage to its tank house during the overnight fire.
Following the insurance claim’s confirmation, Boliden expects to report an income of SEK 2.4 billion ($221,073,144) impacting the results for the second quarter of 2024. The insurance proceeds will be disbursed over time, with specific payment details yet to be finalized.
At the time of the incident, the Rönnskär facility was insured for a total of SEK 3.4 billion ($313,186,954). This coverage was divided between primary insurance with a limit of SEK 2.4 billion ($221,073,144) and excess insurance providing an additional SEK 1 billion ($92,106,500) in coverage.
In response to the fire, Boliden has committed to investing SEK 4.8 billion ($442,146,288) in constructing a new tank house at Rönnskär. This investment, partially financed by potential insurance payouts of up to SEK 3.4 billion ($313,186,954), is scheduled to commence in 2024. The new facility is anticipated to have a capacity of 230 ktonnes, aligning with previous capabilities and operating within existing environmental permits.
Production of copper cathodes and precious metals at Rönnskär is projected to gradually ramp up to full capacity by the second half of 2026, reflecting Boliden’s commitment to restoring operations following the fire.
