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Business Area MinesCapital Markets Day 6 September 2011
Jan MoströmPresident BA Mines
Strategic direction
Operational excellence
Organic growth
Acquired growth
Operationell excellence
Organicgrowth
Acquiredgrowth
2011-09-062Boliden Group-CMD 2011
R&D Program
Exploration‒ Geometallurgy
‒ Improving geological and drill core data for production design (rock mechanics, comminution and processing, optimization of production plans)
Mining‒ Mine automation
‒ Communication systems, remote control, autonomous units
Processing‒ Flotation design
‒ Circuit design for higher recoveries‒ Treatment of penalty elements
‒ Reduce penalty costs, better marketability, new resources‒ Process control
‒ Improving recoveries/quality by real time adjustments according to ore properties
Environmental‒ Water treatment
‒ Control of emissions and minimized operating costs (metals, nitrogen, thiosulfates)
2011-09-063Boliden Group-CMD 2011
New Boliden Way Roll out
4
Boliden Area OperationsProject
Boliden AreaAnalysis
KristinebergPilot Assumptions:
Analysis: 6 weeksProjects: 12-15 months
2010 2011 20132012
Aitik Project
Aitik 1Analysis
TaraAnalysis
TaraProject
GarpenbergAnalysis
Aitik 2Analysis
2011-09-06Boliden Group-CMD 2011
Operational excellence, Cash Cost C1, BA Mines
2011-09-065Boliden Group-CMD 2011
0
50
100
150
200
250
300
350
400
450
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
c/lb C1 Aitik50th percLME price
Source: Brook Hunt - A WoodMcKenzie company, Reuters
Growth, Mineral Resources and Ore Reserves 2006-2010
2011-09-066Boliden Group-CMD 2011
Aitik
2011-09-067Boliden Group-CMD 2011
Aitik Expansion - update
Ramp-up period‒ 32 mtonnes annualized ore production
in Q2‒ Peak capacity convincing‒ 36 mtonnes 2014
Actions implemented‒ Truck engine exchange program‒ Crusher 165 (old) connected‒ New crushers not satisfactory‒ More robust ore supply
Capacity Reliability
Mine and logistics √ √
Crushers √Conveyors √ √Mills √ √Flotation √ √
2011-09-068Boliden Group-CMD 2011
The Aitik Expansion
Double ore production‒ High productivity‒ Profitable mining of lower grades‒ Average reserve grade 0,25%‒ Cu annual production approx +50%‒ Life of mine - 2030
Lower grades‒ Current production plan has lower than
average grades 2011-17 Capex
‒ 6,1 bSEK Time
‒ In production 1 July 2010‒ Full production – 36 Mtonnes ore -
2014
9Boliden Group-CMD 2011 2011-09-06
Production areas with Hauling Cycles
2011-09-0610Boliden Group-CMD 2011
S1
S2
Salmijärvi
5
6
7
Crusher -285Crusher -165
Crusher +20
New Concentrator
Production Aitik, Total milled vs new millHalf year 2011
2011-09-0611Boliden Group-CMD 2011
0
500
1 000
1 500
2 000
2 500
3 000
3 500
maj-10 aug-10 nov-10 feb-11 maj-11
Tonn
es
Total milled New mill
Boliden Area
2011-09-0612Boliden Group-CMD 2011
2011-09-0613Boliden Group-CMD 2011
Inauguration of Maurliden Östra
2011-09-0614Boliden Group-CMD 2011
2011-09-0615Boliden Group-CMD 2011
Kankberg Expansion
2011-09-0616Boliden Group-CMD 2011
Progress report – Kankberg Mine
Ventilation shaft – raise boring 30 m (401)
Drifting – On schedule
Core drilling on plan, two units in operation
Basic and detail engineering – shaft levels, mine water pumping, chrushers etc
Procurement of mobile equipment
2011-09-0617Boliden Group-CMD 2011
Project report – Concentrator, leaching plant
Detail engineering of process and plant upgrade
Basic engineering mechanical and piping
Procurement of process equipment
2011-09-0618Boliden Group-CMD 2011
Ore and waste dumps
2011-09-0619Boliden Group-CMD 2011
Ventilation shaft
2011-09-0620Boliden Group-CMD 2011
Ventilation shaft
2011-09-0621Boliden Group-CMD 2011
Summary Kankberg project
TIME SCHEDULE On track
CAPEX No deviations
FUNCTION No deviations
2011-09-0622Boliden Group-CMD 2011
New Ore handling system at Boliden
2011-09-0623Boliden Group-CMD 2011
New Ore handling system at Boliden
24 2011-09-06Boliden Group-CMD 2011
2.0
1.5
1.5
1.0
2.0
2.0
2.0
3.0
3.0
3.0
3.02.5
3.0
3.0
4.0
4.0
4.0
4.0
3.0
4.0
4.0
0.0
1.0
2.0
3.0
4.0
5.01. Leadership
4. Performance Management
6. Problem Solving
9. Standards for Work
12. 5S
14. Maintenance
22. Visual control
Boliden
Starting/Present Short term Long term
Spider web Boliden Area
2011-09-0625Boliden Group-CMD 2011
Garpenberg
2011-09-0626Boliden Group-CMD 2011
2011-09-0627Boliden Group-CMD 2011
Garpenberg Expansion
2011-09-0628Boliden Group-CMD 2011
Progress report – General
Project team in place
Permission granted for shaft and underground activities
Application for a new environmental permit for new industrial site submitted, negotiations late fall. According to time schedule
Application for building permit submitted
2011-09-0629Boliden Group-CMD 2011
Progress report - Mine
Production shaft – raise boring section 1 (60 %)
Personnel shaft– section 1 raised (300 m), raise boring section 2 commenced
Drifting – several levels in the mine
Ventilation canals – rock work ongoing
Ventilations shafts – 2 section ongoing
Crushers – 2 used ones to be refurbished
Basic and detail engineering – shaft levels, mine water pumping, chrushersetc
Procurement of process equipment
2011-09-0630Boliden Group-CMD 2011
Project report - Concentrator
Detail engineering of paste plant upgrade
Basic engineering mechanical and piping
Procurement of process equipment
2011-09-0631Boliden Group-CMD 2011
Break through section 1 personnel shaft
2011-09-0632Boliden Group-CMD 2011
Raise boringpersonnel shaft
2011-09-0633Boliden Group-CMD 2011
Raise boring reamer personnel shaft 4.5 m
2011-09-0634Boliden Group-CMD 2011
Break through at surface for personnel shaft
2011-09-0635Boliden Group-CMD 2011
New 558 meter level (rope change level)
2011-09-0636Boliden Group-CMD 2011
Rope change level production shaft (15*26*7,5 m)
2011-09-0637Boliden Group-CMD 2011
Electrical substation 700 meter level
2011-09-0638Boliden Group-CMD 2011
On going rock work for ventilation canals
2011-09-0639Boliden Group-CMD 2011
Diamond drilling for cement stabilisation of ventilation shaft
2011-09-0640Boliden Group-CMD 2011
Summary Garpenberg expansion
TIME SCHEDULE On track
CAPEX No deviations
FUNCTION No deviations
2011-09-0641Boliden Group-CMD 2011
Tara
2011-09-0642Boliden Group-CMD 2011
AG grinding mill Tara
2011-09-0643Boliden Group-CMD 2011
1.5
2
22
1.5
2
3
2.53
2
3
3.5
34
3
0
1
2
3
4
51. Leadership
4. Performance Management
6. Problem Solving
7. Learning & Competence Dev
14. Maintenance
Tara
Starting/Present Short term Long term
Spider web Tara
2011-09-0644Boliden Group-CMD 2011
