Sustainability Topic: Indirect Economic Impacts

203–2 Significant indirect economic impact, including the extent of impacts

Boliden’s mining and smelting operations are often of consider­able importance in terms of employment in the local community, making Boliden an important local stakeholder. Not only do the Group’s operations have a substantial impact on job oppor­tunities, they also affect suppliers’ purchasing power elsewhere in the local business sector, which affects the development of the communities’ service sectors in the long term.

Boliden commissioned Ernst & Young. to review its economic contributions to the economy in the four countries with mining and smelting operations (2017 data). There have been no major changes in scope so the report is still valid. The results show that Boliden’s activities support the creation of 30,000 jobs; in Sweden (15,800), Finland (10,900), Norway (1,500), and Ireland (1,800). In addition to these direct jobs (5,650) there are those indirectly supported through ­subcontractors and suppliers (10,735). The average amount of jobs created per Boliden employee is 4.3.

Boliden contributes to the public finances, both through direct taxes and through the taxes paid by suppliers and customers. Boliden’s total contribution to public finances through taxes and other payment to authorities in Sweden, Finland, Norway, and Ireland was SEK 3,195 m in 2019. Please see the Annual and Sustainability Report for specifications.

The Group’s operations not only impact the local communities at large: employees, shareholders, customers and suppliers all depend on Boliden’s profitability, and by improving this aspect of the operations even further, Boliden will be able to ­continue making a positive economic and social contribution to the development of these communities and their societies.

A typical identified indirect negative economic impact could be a mine closure. Social impact assessments are made in conjunction with closure of an operation, in order to assess any consequences to the community and in an effort to mitigate, as far as possible, any negative effects.