Boliden has announced that it has entered into an agreement with First Quantum to acquire the Kevitsa nickel-copper-gold-PGM mine in Northern Finland. The total consideration on a debt free basis is $712 million in cash. The agreement is subject to approval by competition authorities.

“This is an attractive opportunity to acquire a high-quality mine with excellent operational and geographical fit with Boliden. The acquisition of Kevitsa is consistent with Boliden’s growth strategy. Kevitsa started production in the end of 2012 and is an early stage mine, which we believe can provide good synergies with our existing business in mining, concentrating, smelting and regional exploration. It also establishes a nickel feed base load for our Harjavalta smelter”, says Lennart Evrell, President and CEO, Boliden. “The timing of the acquisition fits us well. Boliden has executed substantial expansion projects in recent years and is ready to take on a new major project. Together with the Kokkola and Harjavalta smelters and the Kylylahti mine, the acquisition of Kevitsa will expand Boliden’s platform in Finland, an attractive geological region”, Evrell concludes.

The Kevitsa mine is a nickel-copper-gold-Platinum Group Metals (PGM) mine located in northern Finland. In 2015, nickel and copper accounted for roughly 40% each of net revenue, with gold, PGM and cobalt accounting for the remainder. The mine processed 6.7 Mt of ore in 2015. The mine has 380 employees and around 200 contractors.
In 2015, production was 8,805 t of nickel, 17,204 t of copper, 12,847 oz of gold, 31,899 oz of platinum and 25,196 oz of palladium.