19 th Zinc and its Markets Seminar May 4 th 6 th, 2015 Radisson Blu Royal Hotel, Helsinki, Finland. Welcome address. Robin Lindahl

Transcription

1 19 th Zinc and its Markets Seminar May 4 th 6 th, 2015 Radisson Blu Royal Hotel, Helsinki, Finland Welcome address Robin Lindahl EVP President of Metals, Energy & Water Business area

2 What does the industry want? Economical performance Environmental friendliness Social responsibility What does it mean? Ability to create wealth sustainably Minimal impact to surrounding nature Provision of safe and secure jobs What complicates it? Decreasing revenues Rising costs Unclear investment horizon Undetermined business risks Volatile shareholder value creation Outdated production processes Inefficient equipment Tightening regulations Poor operation practices Declining raw material grades, complex ores with harmful impurities Hazardous workplace Cyclical business Inflexible job market Scarcity of talent Insufficient utilization of human potential What should be done? Assess the situation, identify possibilities and create real working solutions which bring the biggest improvement with given resources 2

3 Zinc production - some challenges requiring innovative solutions Declining ore grades, more complex ores Need to reduce opex and improve utilization of assets Energy and Water efficiency Tightening environmental regulations Acceptance of local society Need to improve safety continuously Access to competent workforce in remote operations How to maximize total resource efficiency Ore Crushing and milling Flotation Roasting Leaching Electrorefining Ore Crushing and milling Flotation Leaching Electrowinning 3

4 Zn market situation 4

5 Zinc market situation Coming years in the zinc markets will be exciting: Several large mines (Brunswick, Skorpion, Perseverance, Lisheen and Century) are in the process of exhausting their reserves and number of new mines coming in production is not sufficient Metal demand has raised over mine supply Development of Chinese Zn smelter projects has not been as fast as foreseen couple of years ago Excess of concentrate and metal stocks will be consumed in coming years This will lead to market deficits which will continue into the second half of this decade And this will further lead to Zn price increase 5

6 Outotec in Brief 6

7 Outotec in nutshell Sales 1.4bn EUR* Deliveries to more than 80 countries 6,796 national patents / applications 4,571 employees* Experts of over 60 nationalities 12 th most sustainable company in the world Presence in 30 countries Outotec R&D, sales and service centers Outotec manufacturing / assembly * in

8 Outotec s business is based on addressing the global sustainability challenges Eco-efficiency Sustainable process technology for: minerals metals water energy 8

9 Portfolio of world-class technologies Natural resources (ores, minerals, biomass, oil, shale/sand, water Secondary resources (recyclates, phosphate, batteries, scrap, e-waste etc. Minerals processing Comminution Dewatering Physical separation Flotation Thickening and clarification Analyzers and process automation Tailings treatment Chemicals processing Sulfuric acid production Water treatment Neutralization, effluent treatment, drinking water Metallurgical processing Sintering and pelletizing Smelting and refining Direct and smelting reduction Calcination Roasting and off-gas handling Leaching and solution purification Solvent extraction Electrorefining and electrowinning Process control Energy Production Combustion and gasification, heat recovery, gas handling, bio energy, oil sand and oil shale processing Services Technical services, modernization solutions, operation and maintenance, spare parts solutions, shutdown services Industrial minerals/ Concentrates Copper Nickel Zinc Cobalt Precious metals Aluminum Ferroalloys Pellets/Sinter DRI/HBI/Pig Iron Sulfuric acid Water Shale oil Char Energy 9

10 Outotec Zn technology 10

11 Outotec zinc plant technology options PYROMETALLURGICAL PROCESSING LEACHING LEACH SOLUTION AND RESIDUES TREATMENT AND BY-PRODUCTS ZINC METAL RECOVERY Sulphuric acid Roasting Calcine leaching Solution purification (Sb route) Sulphide zinc concentrate Concentrate direct leaching Iron removal / Neutralization Solution purification (As route) Zinc EW Melting & Casting SHG Zinc ingot Ausmelt TSL Oxide and silicate zinc ore and secondary raw materials Oxide leaching Zinc SX Residue treatment Byproducts ( Cu, Ni, Co, Cd, Ag, In, Ga, Ge, Pb) Treated residues OUTOTEC IS THE ONLY COMPANY IN THE WORLD WHICH CAN DELIVER ALL PROCESS TECHNOLOGIES NEEDED IN ZINC METAL PRODUCTION FROM MINE TO METAL! 11

12 Latest developments in Outotec Zn technology 1. Outotec OKTOP Plant units for leaching, solution purification and precipitation applications offer onesupplier approach for cost-efficient and fast delivery of a whole plant with high safety and reliability 2. Outotec Titanium Coated Anodes for Zn EW (Acquisition of Republic Alternative Technologies Inc. in April 2014) enabling decrease in consumption of electricity 3. Development of whole process for treatment of secondaries and lowgrade raw materials to produce Special High Grade zinc either with or without Ausmelt TSL technology 12

13 Increase of Zn production capacity Still the actions of China in increasing mine and smelter capacity are the most significant single factor in zinc markets However, there are also some Zn plant expansion projects outside China and Outotec has been successful in two most recent projects in Norway and Mexico: Boliden Odda: t Zn/a expansion from t Zn/a to t Zn/a by concentrate direct leaching technology Met-Mex Peñoles: t Zn/a expansion from t Zn/a to t Zn/a by concentrate direct leaching technology 13

14 OUTOTEC OYJ PRESS RELEASE APRIL 13, 2015 (SHORTENED) Outotec to deliver zinc concentrate direct leaching technology to Boliden in Norway Outotec has agreed with Boliden on the delivery of zinc concentrate direct leaching and iron precipitation technologies and site services for the expansion of the Odda zinc production facilities in Norway. The parties have agreed not to disclose the contract value. Typically such solutions are worth EUR million depending on the scope. Boliden is currently investing in a capacity increase at the Odda zinc plant from 170,000 to 200,000 tonnes of zinc per annum. The plant has been using Outotec's atmospheric zinc concentrate direct leaching process since Outotec's solution comprises the direct leaching technology, basic and detailed engineering and delivery of proprietary OKTOP reactor plant units for leaching and iron precipitation as well as filters and anode handling machines. In addition, Outotec provides extensive services starting from engineering to installation, commissioning and start-up. The deliveries will take place during 2015 and Boliden Odda expansion project 14

15 OUTOTEC OYJ PRESS RELEASE APRIL 14, 2015(SHORTENED) Outotec to deliver technology and services for Met-Mex Peñoles' zinc plant expansion in Mexico Outotec has been awarded an order by the Peñoles Group to deliver technology and site services for the expansion of Met-Mex Peñoles' zinc production facilities in Torreon, Mexico. The order is worth approximately EUR 60 million. Peñoles is a mining group with integrated operations in smelting and refining non-ferrous metals and producing chemicals. The company is the world's top producer of refined silver and among the main refined zinc producers worldwide. Peñoles is expanding its annual zinc production capacity by 100,000 tonnes with Outotec Zinc Direct Leaching technology. Outotec's scope of delivery covers the technology, engineering and license for atmospheric direct leaching of zinc concentrates and downstream process areas. In addition, Outotec will deliver proprietary and auxiliary equipment for the OKTOP reactor plant, as well as advisory services for installation, commissioning and ramp-up. Deliveries will take place between 2015 and Met-Mex Peñoles expansion project 15

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17 Back ups 17

18 A century of accumulated expertise 18

19 Zn consumption vs. production potential 19

20 Zinc price forecast 20