STOCKHOLM - Swedish mining group Boliden will restart production at its Tara zinc mine in Ireland after it was paused in 2023, it said on Friday.
The mine was put on care and maintenance last year after prices of the galvanizing metal hit a three-year low, and Boliden begun talks with staff over a planned resumption in the second quarter of this year.
Sources told Reuters in January that Boliden planned to shrink operations and reduce targeted output at the mine.
"An agreement has been reached between worker's unions and local management which enables the process of reopening the mine at Tara on a more financially sustainable basis," Boliden said in a statement on Friday.
The deal includes staff cuts. Boliden said it will book a €30-million restructuring cost for the cuts and other organisational changes in the second quarter.
The total hit to results in the quarter, including previously announced costs for the care and maintenance, will be €43-million.
Boliden said it will start ramping up the mine in the fourth quarter, and expects full production from January 2025.