Sweden-based Boliden will invest Skr475m ($74m) to start up the Kankberg mine to extract gold and the rare metal, tellurium.

In addition to the investment, the firm has hedged 80% of the Kankberg mine’s planned gold production and entered into a fixed agreement for tellurium sales.

The investment will be made during this year and 2012 on installations, development and equipment below the surface, and rebuilding the Boliden area’s concentrator and gold leaching plant.

Boliden President Lennart Evrell said that good results in exploration and development in leaching technologies, coupled with a historically high gold price and a positive trend in tellurium demand, makes the project viable.