Boliden relies on stable electricity prices as Iran war drives up oil

Boliden AB

28/04/2026 11:04

April 28 (Reuters) - Boliden BOL.ST does not hedge oil prices and given its use of other energy sources, the Swedish miner is in a less bad position than many rivals, CEO Mikael Staffas told Reuters on Tuesday.

The global economy is facing a tangible strain from the energy shock triggered by the war in the Middle East, with companies across industries grappling with soaring production costs and weakening activity.

"We are using relatively more electricity and less oil than many of our competitors," Staffas said

"Our electricity price is not linked to the oil price, it's stable," he added

The decision not to hedge the oil price is "very conscious", as often when oil prices go up, so do metal prices, he said

Oil prices will still be seen in transportation costs and purchases of diesel and chemicals

However, Boliden should see positive effects from exchange rates, metal prices and some by-products, including sulfuric acid, Staffas said

Boliden does not have any supply coming out of the Middle East and it does not sell anything in the region

The group, which benefits from high precious metal prices, reported a 70% jump in Q1 adjusted earnings on Tuesday

(Reporting by Izabela Niemiec, Agnieszka Olenska in Gdansk, editing by Milla Nissi-Prussak)

((izabela.niemiec@thomsonreuters.com))