Swedish miner Boliden (STO: BOL) plans to resume production at its Tara zinc mine in northeast Ireland after reaching an agreement with unions to lower costs, which will cut of the operation’s workforce by a third.
The number of full-time workers is to be reduced to about 400, down from the previous count of over 600 before the shutdown last year, Boliden said in a news release Friday.
Boliden halted Tara, Europe’s largest zinc mine, last year after prices of the metal hit a three-year low and the operation faced expensive energy costs and production challenges.
The miner plans to gradually ramp up Tara’s operations in the fourth quarter, with the expectation of reaching full capacity in January 2025.
Exploration activities at the site will also be resumed.
The company announced that it plans to record a restructuring cost of €30 million (US$32.3 million) in the second quarter tied to the job cuts and other organizational changes. The total impact on the quarter’s results, including previously disclosed costs for care and maintenance, is expected to be €43 million, Boliden said.
Zinc prices have recovered this year after hitting multi-year lows in 2023. The galvanizing metal is trading at $2,834 per tonne, about 5.7% higher than a year ago.
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