Boliden has entered into an agreement with First Quantum to acquire the Kevitsa nickel-copper-gold-Platinum group metals (PGM) mine in northern Finland for $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,” said 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,” Lennart Evrell concludes.
In 2015, nickel and copper accounted for roughly 40% each of Kenitsa’s net revenue, with gold, PGM and cobalt accounting for the remainder. The mine processed 6.7 million mt of ore in 2015. The mine has 380 employees and around 200 contractors.
In 2015, production was 8,805 metric tons (mt) of nickel, 17,204 mt of copper, 12,847 ounces (oz) of gold, 31,899 oz of platinum and 25,196 oz of palladium.
The transaction will be financed with a committed 24-month bank facility provided by Nordea. Boliden will evaluate a range of refinancing options for this bank facility. The transaction is subject to customary approval by competition authorities in Finland, Sweden and Germany.
Goldman Sachs International is acting as sole financial adviser to Boliden in connection with the acquisition.