"This corresponds to 10% of global tellurium production," Boliden said.
The company will invest SEK475 million ($70 million) in new underground facilities and equipment, as well as the redevelopment of an existing concentrator and gold leaching plant at the Boliden site to facilitate recovery of tellurium deposits.
The company has hedged Kankberg’s gold production – estimated at 1.15 tpy – from first production in 2012 through to 2017, and has also agreed a long-term tellurium supply deal with an unnamed offtake partner.
Boliden will sell tellurium at a fixed price of $280 per kg as part of the agreement, it said.
“Good results in exploration and development in leaching technologies coupled with a historically high gold price as well as...