An equipment breakdown at Tara Mines will contribute to a shortfall in second-quarter profits at the Irish company's Swedish owner, Boliden, it emerged yesterday.
Miner and smelter Boliden warned that second-quarter earnings would be hit by lower production levels, sending its shares down more than 5 per cent.
The Swedish company said second-quarter operating earnings were expected to come in below the $52.3 million (€44 million) posted in the first quarter.
Boliden blamed unforeseen maintenance shutdowns and stoppages at Aitik in Sweden and Tara zinc mine in Co Meath for the fall in production.
Tara was hit last month by a breakdown in an electric motor that powered a grinding mill used in the production of zinc and lead concentrates.
The Irish mine produces 400,000 tonnes of zinc and 50,000 tonnes of lead each year. It is a key contributor to Boliden's smelting operations.
Last month, Boliden predicted the breakdown at Tara would cut production by 40 per cent over the six weeks that it would take to repair the fault.
The company told the markets that this would shave 40 million Swedish kroner (€4.26 million) from its operating profits.
Demand for zinc means it is difficult to get one off or "spot" prices for it on world markets.
Shares in Boliden were down 5.5 per cent at 30.8 kroner yesterday morning, underperforming the Stockholm bourse's broad SAX index, which stood 0.3 per cent higher.
Several of Boliden's units were closed for maintenance in the quarter and the firm had been forced to extend the planned closure of its Harjavalta nickel smelter.
