Boliden files suit against Spanish construction firm

Boliden’s Spanish subsidiary has filed a US$100-million lawsuit against Dragados y Construccines, a construction company, in connection with the failure of the tailings dam at Boliden’s Los Frailes mine in 1998.

The suit demands that Dragados y Construccines compensate Boliden Apirsa and its insurance companies for costs associated with the cleanup operations. It also demands compensation for persons affected by the accident.

The claim follows a criminal investigation in late 2001 that left Boliden Apirsa acquitted of all responsibility for the Los Frailes incident. An international commission of enquiry echoed the findings of the criminal investigation, stating that the failure was caused by defects in the design and construction of the tailings dam. The dam was built by Dragados y Construccines.

In late August 2002, the Spanish government made a US$45-million claim against Boliden Apirsa for costs of the recovery efforts after the dam failure. However, Boliden did not accept the claim, noting it had already been acquitted of responsibility in the 1998 investigation.

“The question of responsibility has already been investigated,” said Boliden Chief Executive Jan Johansson in a statement. “What’s going on now can be compared to a political game in Spain, where Boliden has been unjustly charged.”

He added: “Our previous judgment that there isn’t a risk for further losses for Boliden still stands. We will now try to get back the costs we’ve incurred in relation to [Los Frailes].”

Boliden terminated operations in Spain at the end of 2001.