Mining firm Boliden confirms insurance claim for Rönnskär fire

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Swedish mining company Boliden has confirmed that the primary insurance company has fully assumed its part of the insurance claim following the June 2023 fire at the Rönnskär smelter, a major producer of copper, zinc, lead and other metals.

For those who need a reminder, on June 13, 2023, a fire broke out overnight at Boliden’s Rönnskär, with the smelter’s tank house being destroyed.

Now, following the confirmation of the insurance claim for Rönnskär, Boliden has noted that it will report an income of SEK 2.4 billion ($221,073,144) affecting the result for the second quarter of 2024. Thereafter, the insurance proceeds are expected to be paid out over time. However, the payment plan has not yet been determined.

At the time of the fire, Rönnskär’s total insurance coverage amounted to SEK 3.4 billion ($313,186,954). This was split between primary insurance with a limit of SEK 2.4 billion ($221,073,144), and an excess insurance applicable on top of the primary insurance, with an additional coverage of SEK 1 billion ($92,106,500).

Boliden has additionally decided to invest SEK 4.8 billion ($442,146,288) in a new tank house at Rönnskär. The production of copper cathodes and precious metals is expected to gradually increase to full capacity during the second half of 2026.

The investment, which will be partially financed by potential insurance payout with a maximum amount of SEK 3.4 billion ($313,186,954), will begin in 2024.

The plant will reportedly have a capacity of 230 ktonnes, which is in line with the previous capacity and is granted under existing environmental permit.



This article was originally published by a www.reinsurancene.ws

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