Indirect economic impacts

Aspect Specific DMA

Boliden’s operations affect and touch the lives of many people – sometimes entire communities. Value creation depends on the ability to show consideration for people, society and the environment throughout the value chain. Boliden aims to make a positive contribution to the development of communities, regions and countries in which they operate.

Boliden currently operates in countries where the infrastructure is well developed and the need for Boliden to contribute to society by directly investing in and developing infrastructure and social services is limited.

Boliden is, however, often one of the bigger companies in the local area, paying taxes in the areas in which Boliden operates, and its contribution can, therefore, be considered significant.


EC8 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. The Group’s operations have not only a substantial impact on job opportunities but also affect suppliers’ purchasing power elsewhere in the local business sector, which, in the long term, impacts the development of the communities’ service sectors.

In 2016, Boliden commissioned EY to review its economic contributions to the economy in the four countries with mining and smelting operations. The analysis is based on Boliden’s financial data, purchasing pattern and publicly available statistics. The newly acquired Kevitsa operation has not been included in the assessment. The results show that Boliden’s activities support the creation of 25,300 jobs, in Sweden (14,300), Finland (7,800), Norway (1,400), and Ireland (1,700). These are direct jobs (5,100), those indirectly supported through subcontractors and suppliers (8,900), or those supported through the induced effect of the employees’ expenditure (11,400). The average amount of jobs created per Boliden employee is 4.0, and as a consequence, Boliden also contributes to the public finances both through direct taxes and through the taxes paid by suppliers and customers. In our most recent calculation, based on the preliminary 2016 financial results, Boliden’s total contribution to public finances through taxes in Sweden, Finland, Norway and Ireland is estimated at SEK 11,500 million.

Compared to earlier assessments based on the 2014 results, job creation is slightly lower in Sweden and Ireland, but on a higher level in Norway. The variations can to some extent be explained by the ongoing investment programmes.

Boliden participates in the development of education for future engineers within the mining and metals industry.

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 society.

Jobs created per country