Why does Boliden choose not to hedge oil prices, and how does this strategy align with its business model?

Boliden consciously chooses not to hedge oil prices because its operations rely relatively more on electricity—and less on oil—than many competitors, and its electricity prices are stable and not linked to oil prices. CEO Mikael Staffas explained that this decision is strategic: when oil prices rise, metal prices often rise too, benefiting Boliden’s core mining business. While oil price increases still affect transportation costs and purchases of diesel and chemicals, the company’s exposure is limited, and it gains offsetting advantages from higher metal prices, favorable exchange rates, and by-product revenues such as sulfuric acid.

What is Boliden’s exposure to the Middle East conflict, and how does it impact the company’s supply chain and sales?

Boliden has no supply coming from the Middle East and does not sell anything in the region, meaning it faces no direct operational or commercial exposure to the war in the Middle East. As a result, the energy shock and geopolitical disruption have no material impact on its supply chain or market access. This geographic insulation, combined with its electricity-based energy profile and lack of oil price linkage, places Boliden in a comparatively stronger position than peers facing broader regional dependencies or oil-linked cost structures.

Boliden Relies on Stable Electricity Prices as Iran War Drives Up Oil

Apr 28, 2026

Swedish miner Boliden reported a 70% jump in Q1 adjusted earnings, citing stable electricity prices and high metal values as advantages over rivals facing rising oil costs amid the Middle East conflict.

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