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

In 2017, 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 patterns and publicly available statistics. The acquired Kevitsa operation has been included in the assessment. 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), or those supported through the induced effect of the employees’ expenditure (11,400). The average amount of jobs created per Boliden employee is 4.3 and consequently, Boliden 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 2018 financial results, Boliden’s total contribution to public finances through taxes in Sweden, Finland, Norway, and Ireland is estimated at SEK 2,286 m.

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. Examples of significant identified indirect negative economic impacts of the organization is not found and therefore part of the omission.