The cost to Tara Mines of the recent flooding incident is around €24million according to parent company Boliden.
Production att he mine has partially resumed and will increase gradually as more production areas can be restored .
The total impact on operating profit in the fourth quarter of 2021 is preliminarily estimated at approximately SEK 250 million, according to a statement issued by the company.
“The amount includes the costs of stopping the inflow of water and restoring critical mining infrastructure, depreciation of destroyed assets as well as loss of revenue,” acordding to the company.
Water flooded into the mine two weeks ago, following the drilling of a pilot borehole to the Tara Deep exploration drift and production was stopped for safety reasons. The flooding was stopped after successful efforts and production has now been partially resumed.
“Production will also be affected during the first half of 2022. Exactly how much is still too early to estimate. Full access to the Tara Deep drift for further exploration will not come until the second half of 2022. Business Area Smelters will not be affected,” the statement concluded.
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