Fray Bentos mill status. Eugenio García Sami Saarela

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Fray Bentos mill status Eugenio García Sami Saarela

Milestones of the pulp mill project Eucalyptus plantations established in Uruguay at the beginning of 1990 s by UPM-Kymmene and Shell (Compañia Forestal Oriental) Botnia purchases 60 % of Forestal Oriental (early 2003), today a fully owned subsidiary of Botnia Botnia S.A. founded (October 2003) Preliminary Environmental Authorization (February 2005), the project starts Fibre line installation starts in November 2006 Readiness for start-up in September 2007 Final Environmental Permit in October 2007 Start-up November 9th, 2007 Reaching the nominal capacity of the mill (as 30 days average) 145 from the start-up 2 EGa 03.11.2008

Key data of the mill Capacity 1000 000 ADT/year of fully bleached eucalyptus pulp Target brightness 89 92 % ISO, ECF-bleaching Raw material mixture comprises of E. Grandis, E. Dunnii and E. Maidenii Basically the entire raw material supply comes from the plantations of Forestal Oriental within max. distance of 200 km from the mill, wood usage > 3 million s-m3 The entire fiberline and chemical recovery process delivered by Andritz 3 EGa 03.11.2008

Process and equipment Woodhandling Fiberline Recovery Effluent treatment 4 EGa 03.11.2008

Woodhandling Debarking in the forest Two parallel chipping lines at the mill (capacity 2 x 330 s- m³/h) Final debarking (diameter 4 m, length 15 m debarking drums) Chippers of horizontal feeding (HHQ-ChipperTM) Two chip piles (diameter 106 meters, capacity 93 000 s-m3) Gyratory screening of chips 5 EGa 03.11.2008

Fiberline 6 EGa 03.11.2008

Basic features of the fiberline Cooking: Process Lo-Solids Downflow Diamondback chip silo, Turbofeed chip feeding system (three chip pumps in series) Brown stock washing: Three DD-washers in parallel (DD4580.3) Oxygen delignification: Two stages 10 + 60 min residence time Bleaching: Sequence (A/D)-Eop-D-P Drying of pulp: Two parallel drying machines, capacity 2 * 1800 ADT/d Twin Wire Formers 7 EGa 03.11.2008

Chemical Recovery Evaporation plant: 7 effects, capacity 1100 tons water/h Recovery boiler: Combustion capacity 4450 tons/d Steam values: pressure 94 bar (g) and temperature 490 oc Vapor generation capacity 182 kg/s Electric power generated with two 70 MW turbines White liquor preparation: X-Filters for green liquor filtration, disc filters for the the white liquor filtration Lime kiln with the capacity of 830 tons CaO/d 8 EGa 03.11.2008

Effluent treatment Activated sludge biological treatment, for ca. 73 000 m3/d effluent flow: Coarse screening to remove bigger particles Primary clarifier to remove solids (mainly fibers) from the high solods stream Safety and equalization basins (three 25 000 m3 basins in parallel) Cooling tower for temperature control Aeration basins (rwo in parallel) Secondary clarifiers (two in parallel, dia. 65 m) Excess sludge disposal system 9 EGa 03.11.2008

Effluent treatment plant 10 EGa 03.11.2008

Botnia FRB Key Figures 120 100 80 60 40 20 0 11 EGa 03.11.2008 Cumulative production up to 21/04/09 : 1358578 tons Record day production up to 31 Oct: 3890 t/d (25/01/09) 1000000 TONS in moving 12 month just reach 75,6 81,1 92,8 95,3 94,7 83,7 AVAILABILITY % 96,3 92,7 97,8 89,9 65,9 99,9 97,5 93,4 92,3 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH 105 100 95 90 85 80 99,7 JANUARY FEBRUARY MARCH 98,1 98,1 98,8 APRIL MAY JUNE JULY AUGUST SEPTEMBER PRIME GRADE % 99,9 99,7 99,8 99,2 100 98,9 97,9 99,5 99,4 OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH 97,3 87

12 EGa 03.11.2008

TONS/DAY Botnia FRB Production: Nov 07- actual 3500 3000 2500 2000 1500 DAILY PRODUCTION (month average) 2203 2 0 72 2222 2 54 1 2 6 11 2 59 3 2201 2945 2892 2807 2687 2 59 1 3 154 3 154 30232969 1000 12.2007 02.2008 04.2008 06.2008 08.2008 10.2008 12.2008 02.2009 MONTH 13 EGa 03.11.2008

PROD (TONS) Botnia FRB Production: Nov 07- actual 120.000 100.000 80.000 60.000 MONTHLY PRODUCTION 9 7.771 9 7.76 2 9 1.3 0 9 9 2.0 3 4 8 0.3 9 8 8 6.76 6 78.78 3 8 3.2 9 2 8 7.0 2 3 6 8.2 8 9 78.3 3 2 75.58 7 6 4.2 3 1 6 4.4 3 8 6 6.0 3 5 57.0 0 4 40.000 20.000 3 0.8 9 2 0 11.2007 01.2008 03.2008 05.2008 07.2008 09.2008 11.2008 01.2009 MONTH 03.2009 14 EGa 03.11.2008

15 EGa 03.11.2008 Botnia FRB quality trends

16 EGa 03.11.2008 ISO Brightness (%) DM2 BRIGTHNESS 86 87 88 89 90 91 92 93 21/01/2008 04/02/2008 18/02/2008 03/03/2008 17/03/2008 31/03/2008 14/04/2008 28/04/2008 12/05/2008 26/05/2008 09/06/2008 23/06/2008 07/07/2008 21/07/2008 04/08/2008 18/08/2008 01/09/2008 15/09/2008 29/09/2008 13/10/2008 27/10/2008 10/11/2008 24/11/2008 08/12/2008 22/12/2008 05/01/2009 19/01/2009 02/02/2009 16/02/2009 02/03/2009 16/03/2009 30/03/2009 13/04/2009 DM1 BRIGTHNESS 85 86 87 88 89 90 91 92 93 21/01/2008 21/02/2008 21/03/2008 21/04/2008 21/05/2008 21/06/2008 21/07/2008 21/08/2008 21/09/2008 21/10/2008 21/11/2008 21/12/2008 21/01/2009 21/02/2009 21/03/2009

21/01/2008 21/02/2008 21/03/2008 21/04/2008 21/05/2008 21/06/2008 21/07/2008 21/08/2008 21/09/2008 21/10/2008 21/11/2008 21/12/2008 21/01/2009 21/02/2009 21/03/2009 21/04/2009 21/01/2008 21/02/2008 21/03/2008 21/04/2008 21/05/2008 21/06/2008 21/07/2008 21/08/2008 21/09/2008 21/10/2008 21/11/2008 21/12/2008 21/01/2009 21/02/2009 21/03/2009 21/04/2009 Dirts on pulp (mm2/kg) DIRT DM1 7 6 5 4 3 2 1 0 DIRT DM2 12 10 8 6 4 2 0 17 EGa 03.11.2008

21/01/2008 21/02/2008 21/03/2008 21/04/2008 21/05/2008 21/06/2008 21/07/2008 21/08/2008 21/09/2008 21/10/2008 21/11/2008 21/12/2008 21/01/2009 21/02/2009 21/03/2009 21/04/2009 21/01/2008 21/02/2008 21/03/2008 21/04/2008 21/05/2008 21/06/2008 21/07/2008 21/08/2008 21/09/2008 21/10/2008 21/11/2008 21/12/2008 21/01/2009 21/02/2009 21/03/2009 21/04/2009 Viscosity (ml/g) 1000 800 600 400 200 0 VISCOSITY DM1 VISCOSITY DM2 1000 800 600 400 200 0 18 EGa 03.11.2008

Successes and bottlenecks 19 19 EGa 03.11.2008

Successes Good production figures Good learning curve of operators and engineers. Effective organization Emissions under permit limits and most parameters have already achieved long term average targets (expected to be reached about 3 years after start up) Good and even pulp quality Safety 20 EGa 03.11.2008

Performance tests Wood Handling: chips production accepted Fiberline: done, but line needs more tunning on digester and brownstock washing to achieve guarantee figures. Drying machines: done and accepted Evaporation: done Boiler: done 21 EGa 03.11.2008

Bottlenecks White liquor plant: Had been bottleneck until September Green liquor filtration (due to bad quality welding of recirculation pipes), and to much solids in the circulation White liquor filtration (learning what parameters affect WL filtrability, adjusting slits and correcting start up procedure) Lime kiln bricks Now very good production level Evaporation: Bottleneck during May and June Hydroblasting and acid washing of effect 2 performed in June and periodical boil outs have improve situation 22 EGa 03.11.2008

Bottlenecks Drying machines: Bottleneck for short periods, due to side deckers on wet end worn out, felts changes and cutter jams. Availability problems Fiberline: Bottleneck for short periods, due to lower than expected availability. Main problems: chip pums, steam nozzles leakages, combi screens operability, unstable consistencies, corrosion D2 control valve, fiber reinforced pipes breaks. It is present bottleneck together with RB Recovery Boiler: It is present bottleneck if fiberline is in steady operation 23 EGa 03.11.2008

24 EGa 03.11.2008 Process and availability optimization challenges

Wood and wood handling Minimizing cost of handling Amount of bark. Have effects on: quality of product, availability of the area and in the future whole mill, and gasifier. Dryness of wood: Have effect on cooking. To check logistic chain. More efficient use of water. 25 EGa 03.11.2008

Fiberline Digester parameters fine tunning to get stable discharge (kappa and consistency) at blow line and stable higher pulp viscosity To check yield: TDS/ADT very high (there are other reasons also: high dead load at liquor circulation, high ashes recirculation) Digester bottom & brownstock washing improving continues Improving availability issues: chips pumps problems Desing/operation of screening Consistency control Tank agitation and pipes desing Rotors and baskets Sand separation Better control of consistency along the line Better understanding of the effect of key parameters on papermaking characteristics. 26 EGa 03.11.2008

Drying machines Moisture and basis weight control after drying machines optimization ongoing Sectional drives (situation it is better) Fabrics (to develop the suppiers) to improve durability and runnability Dryer threading still some problems, have improved Pick up rolls water splashing ( dealing with the issue, some modifications next shutdown) Screening improvement (sand separation and secondary accepts to primary accepts) 27 EGa 03.11.2008

Evaporation and boilers EVAPORATION not important continuous problems. Future situation depending on better reduction efficiency at boiler and optimizacion of caustizicing efficiency RECOVERY BOILER Learning to run Recovery Boiler with higher reduction efficiency and lower carbon to green liquor Chloride and potasium removal: corrosion and plugging at continuous high load. Some construction issues. 28 EGa 03.11.2008

WLP and Lime Kiln WLP Design/construction issues at X filters To optimize caustizicing efficiency LIME KILN Brick lining design To maximize hydrogen burning Help for success of gasifier project 29 EGa 03.11.2008

Electricity and ETP ELECTRICITY to achieve optimum distribution between selling for chlorate production and the national grid Load shedding: Changes in the program to shed only what it is necessary Changes in the priorities between areas ETP Treatment of domestic effluents 30 EGa 03.11.2008

Summary of challenges Improving availability of whole mill to improve quality stability, increasing production, lowering cost and lowering even further emmisions; overcoming bottlenecks. Continue with test runs on wood handling, fiberline & recovery Understanding effect of key process parameters on papermaking properties of pulp Improving bales quality 31 EGa 03.11.2008

32 EGa 03.11.2008 Environmental figures March 2009 Effluent

Effluent discharge - COD 16 14 COD (DQO) - Kg/ADT Permit limit (annual): 15 Kg/ADT 12 10 8 6 Long Term Average (IFC, annual): 8 Kg/ADT Target 2009 (annual): 5 Kg/ADT 4 2 0 60 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 COD (DQO) - ton/d Permit limit (monthly): 56 ton/d Avg 2009 50 40 30 20 10 0 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 33 EGa 03.11.2008 Avg 2009

Effluent discharge BOD 5 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 BOD 5 (DBO 5 ) - Kg/ADT Permit limit (annual): 0,7 Kg/ADT Long Term Average (IFC, annual): 0,3 Kg/ADT 0,0 3,0 2,5 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 BOD 5 (DBO 5 ) - ton/d Permit limit (monthly): 2,6 ton/d Avg 2009 2,0 1,5 1,0 0,5 0,0 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 34 EGa 03.11.2008 Avg 2009

Effluent discharge - AOX 0,16 0,14 AOX - Kg/ADT Permit limit (annual): 0,15 Kg/ADT 0,12 0,10 0,08 0,06 Long Term Average (IFC, annual): 0,08 Kg/ADT 0,04 0,02 0,00 0,60 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 AOX - ton/d Permit limit (monthly): 0,56 ton/d Avg 2009 0,50 0,40 0,30 0,20 0,10 0,00 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 35 EGa 03.11.2008 Avg 2009

Effluent discharge P Total 0,024 P Total - Kg/ADT 0,020 Permit limit (annual): 0,020 Kg/ADT 0,016 0,012 Long Term Average (IFC, annual): 0,012 Kg/ADT 0,008 0,004 0,000 0,08 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 P Total - ton/d Permit limit (monthly): 0,074 ton/d Avg 2009 0,07 0,06 0,05 0,04 0,03 0,02 0,01 0,00 36 EGa 03.11.2008 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 Avg 2009

Effluent discharge N Total 0,24 N Total - Kg/ADT 0,20 Permit limit (annual): 0,20 Kg/ADT 0,16 Long Term Average (IFC, annual): 0,15 Kg/ADT 0,12 0,08 0,04 0,00 0,80 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 N Total - ton/d Permit limit (monthly): 0,74 ton/d Avg 2009 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 37 EGa 03.11.2008 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 Avg 2009

Effluent discharge - TSS 1,2 TSS (SST) - Kg/ADT 1,0 Permit limit (annual): 1,0 Kg/ADT 0,8 Long Term Average (IFC, annual): 0,7 Kg/ADT 0,6 0,4 0,2 0,0 4,0 3,6 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 TSS (SST) - ton/d Permit limit (monthly): 3,7 ton/d Avg 2009 3,2 2,8 2,4 2,0 1,6 1,2 0,8 0,4 0,0 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 38 EGa 03.11.2008 Avg 2009

Effluent discharge - Flow 50 Effluent flow (Caudal de efluente) - m 3 /ADT BAT (annual): 30-50 m 3 /ADT 40 30 Target 2009 / LTA (annual): 25 m 3 /ADT 20 10 0 07/08 08/08 09/08 10/08 11/08 12/08 01/09 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 Avg 2008 Avg 2009 39 EGa 03.11.2008