Boliden Mines Introduction and Strategy Mikael Staffas President Boliden Mines
Integrated business with mines and smelters MINES SMELTERS HEAD OFFICE
Boliden s metals what are they used for Metal Main usage Other usage Copper Electricity in all forms Heat Exchange Brass/Bronze Zinc Galvanizing Brass Batteries Lead Batteries Radiation protection Nickel Stainless steel High Tech Batteries Palladium Platinum Tellurium Cobalt Gold Silver Catalyzers Solar Batteries Finance High Tech Jewelry Electronics
Boliden Mines position in EU Metal Copper 2 Zinc 1 Lead 1 Nickel 2 Palladium Platinum Tellurium Position 1? Cobalt 1? Gold Silver 1 (also world wide) 2-3
Safety Developement Lost time injuries (LTI) including contractors, Boliden Mines No of LTI:S Frequency
World Class Productivity Zinc Underground mines Copper Open pit mines* 4 Tonnes per man hour 35 Tonnes per man hour 3 Garpenberg 30 25 Aitik 2 Tara Boliden Area 20 15 1 10 5 0 0 5 10 15 20 0 0 20 40 60 80 100 120 140 Million tonnes ore milled per year Million tonnes ore milled per year SOURCE: Wood Mackenzie 2017, * Open pit and mines with mix open pit-underground
Aitik Boliden Area Aitik Kylylahti Boliden Area Garpenberg Boliden Area Tara Garpenberg Tara Boliden Area Improved Cost Position Zn 2006 2016 Cu 2006 2016 SOURCE: Wood Mackenzie Q4 2016, cash cost for Kylylathi calculated by Boliden NOTE: C1 cast cost, US Cents/lb. Pro Rata Boliden Area and Garpenberg. Normal costing Aitik, Kylylahti and Tara
Climate Smarty Value Chain Mine + Smelter, CO 2 per kt Cu 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Aitik-Rönnskär Chuquicamata-Chinese smelters Salobo-Aurubis Kevitsa-Harjavalta Neves Corvo- Harjavalta KGHM-KGHM Mine, diesel Mine, to dispatch Smelter Mine, electricity Transportation
Exploration Kevitsa-Sakatti - Cu & Ni Kiruna-Gällivare - Cu Skellefte district - Polymetallic Outokumpu area - Polymetallic Bergslagen - Zn & Ag Tara - Zn & Pb 5 3 2 1 4 6
Life of mine Our largest and most profitable mines have long life and competitive positions Reserve life, years 40 35 30 25 20 15 10 5 0 Aitik Boliden Area Garpenberg Kylylahti Tara Kevitsa 2006 2016
General Challenges Area Challenge Safety > Reach international level Technology development > Remain in the forefront Cost/productivity > Continuous improvements License to operate > Permits General acceptance Talent and competence > Handle retirements Business development > Identify the next big mine
Challenges per Mine Mine Challenge Aitik > New Crusher Production increase to 45 mton Garpenberg > Use exploration success Handle lower grades (cost of success ) Permit renewal Tara > New tailings facility Tara Deep Boliden Area > New tailings facility Extension/Rävliden Kevitsa > Production increase to 9 mton Kylylahti > More Ore Cobalt/Nickel
Kevitsa Copper and Nickel mine acquired in 2016 Good fit Long life of mine Area with geological potential Establish internal feed for nickel and increase for copper Nickel to Harjavalta 60% of Copper to Boliden Smelters Timing Planed increase to 9 mton
Decommissioning and after treatment of mines Boliden is responsible for ~30 decommissioned mine sites Systematic monitoring and risk assessment Funding allocated during operations Target: Use best available technology and support bio diversity Natural Area Protective Layer Covering Layer Waste rock and contaminated substances
R&D with many partners P&H ASCOM SISCO ABB CAT TELIASONERA SANDVIK JAMA EKAHAU SOGETI LKAB IMB VOLVO ATLAS COPCO MOBILARIS ERICSSON
Ventilation on demand - Kankberg Partnership with ABB and Mobilaris Launched April 2016 50 % reduced energy consumption Reduced CO2 corresponding to 50 cars Cost saving
Driverless trucks - Kristineberg Mine
Q1-Q3 2017 - Boliden Mines High production, record profit MSEK R4Q, MSEK EBIT 4,501 (1,688) MSEK 2 000 1 800 6 000 5 400 ROCE 24% (10) 1 600 1 400 4 800 4 200 Improved prices & terms against 2016 1 200 1 000 3 600 3 000 Capex 2,458 (1,832) MSEK 800 600 2 400 1 800 Record production Aitik 400 200 1 200 600 Good development of Kevitsa 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2012 2013 2014 2015 2016 2017 0 Quarterly EBIT Rolling 4Q EBIT