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Swedish mining giant Boliden halts production at Tara due to flooding

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(Kitco News) - Sweden-based mining company Boliden (Nasdaq Stockholm: BOL) announced Wednesday that production at Tara Mines has been stopped due to increased water flows into the mine.

The company said that the increased water flow resulted from drilling of a pilot raisbore hole for a ventilation shaft and that underground production is not considered possible at this time.

Boliden explained that whilst drilling a pilot raise bore hole for a 1km ventilation shaft, a high flow of water into the mine was encountered, which caused production to be stopped as inflow volumes exceeded the capacity of the dewatering infrastructure.

"The production has been stopped to focus on protecting infrastructure and equipment, whilst also eliminating unnecessary addition of water into the mine. Initiatives have been initiated to stop the flow of water from the pilot raise bore hole," the company said in a statement.

Boliden added it is currently unclear how long the production stoppage will last.

According to Wikipedia, Boliden is a Swedish mining and smelting company focusing on production of copper, zinc, lead, gold and silver. The name comes from the Boliden mine, some 30 km northwest of the Swedish town of Skellefteå, where gold was found in 1924.

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