Swedish mining and smelting company Boliden will invest SEK3.9bn ($590m) to expand its Garpenberg mine in Dalarna County of Sweden.
The investments will be used for developing new concentrator, new shafts, underground facilities and infrastructure of the mine.
Ore production is anticipated to gradually grow from 2 million tones to 2.5 million tonnes by the end of 2015, with all the new facilities expected to become operational in 2014.
Boliden president Lennart Evrell said the expansion of the mine will cut unit costs and thereby increase the possibility of utilising the area’s geological potential.
Polymetallic ores containing zinc, silver, lead and smaller volumes of copper and gold are mined at Garpenberg.
The company plans to submit an application to the Environmental Court next month, for a new environmental permit.