Delivering operational
excellence
Jan Moström, President Boliden Mines
Capital Markets Day 2014
10 November 2014
CMD 2014
42
2014-11-10
Delivering operational excellence
Operational
excellence
Productivity - availability
Metallurgy
Tara transformation
Project management
Organic expansion
Focusing on
profitable growth
M&A
CMD 2014
43
2014-11-10
Environmental excellence is a key focus
Water treatment
‒ Fenton
‒ Biological process for nitrogen
removal
Reclamation
‒ Tailings facilities
‒ Waste rock
‒ Sites
TMF, Operational performance
CMD 2014
44
2014-11-10
Acid mine water – oxidation of Pyrite
Pyrite Sulfide ore
CMD 2014
45
2014-11-10
High level of productivity but more to be
achieved
Copper - open pit with mill 2014
Zinc - underground mines 2016
tonne per
man hour
5.0
4.5
tonne per
man hour
35
Citronen project
(Grönland)
Aitik
30
4.0
3.5
25
Garpenberg
3.0
Pyhäsalmi
(Finland)
2.5
2.0
777 (Kanada)
Doe Run (USA)
Bolidenområdet
Tara
Aguas Tenidas
(Spanien)
Tayahua Project
(Mexiko)
Cerro Lindo
(Peru)
Kazakhmys
(Kazahstan)
1.5
1.0
0.5
0.0
0
1
2
3
4
5
Mineral Park (USA)
Gibraltar (Kanada)
Boddington
Butte (USA)
(Australien)
20
Highland Valley
Sierrita (USA) (Kanada)
15
Bingham Canyon
(USA)
Antamina (Peru)
Cerro Verde (Peru) Los Pelambres
10
5
(Chile)
Collahuasi (Chile)
Escondida (Chile)
0
0
6
20
40
60
80
Million tonne ore production per year
Million tonne ore production per year
CMD 2014
Mount Milligan
(Kanada)
46
2014-11-10
5
100
Aitik – no 1 productivity
Open pit Cu mines
Percentile **
Head grade
% Cu
99
Mine
t ore/hour
1
Mill
t ore/hour
0
G&A
t ore/hour
0
Overall
t ore/hour
0
Wage rate
$/hour
87
Labour cost
$/t
12
Cash cost, Normal C1* - All
mines
c/lb Cu
42
* Cash cost Normal C1, Wood Mackenzie Q3 2014 estimate for 2014
** All mines in Woodmackenzie model, Q2 2014 estimates for 2014
CMD 2014
47
2014-11-10
World-class design
Fundamentals
‒
‒
‒
Mine
‒
Geological target, conceptual study
Mineral resource, pre feasibility
Mineral reserve, feasibility study
Interaction infrastructure – production
areas – stopes
Concentrator
‒
‒
‒
‒
CMD 2014
Mill
Flotation
Dewatering
TMF
48
2014-11-10
Increasing performance at mine and mill
Key productivity drivers at mine
Minimizing lead time between work
processes at faces/stopes/benches
Key drivers for the concentrator
Optimizing availability of
mill/flotation/dewatering and
metallurgical performance
CMD 2014
49
2014-11-10
Integrated control system drives efficiency
Integrated control system for mine and mill
‒ Increased efficiency
‒ Lower costs
Mobile control room
‒ Enables operators to monitor and adjust in
real time
Control system integrated with
maintenance system
‒ Only one original document
‒ All share same info
‒ Improved surveillance
‒ Easier to spot errors
‒ Diary improves visibility over time
WLan
‒ Enable status control and operational
guidance
CMD 2014
50
2014-11-10
Wlan
Enable status control and operational guidance
CMD 2014
51
2014-11-10
Leading expertise in handling complex ore
90 years of mining complex ore
Complex deposits with increasing
grades of penalty elements
Case: Kankberg
CMD 2014
Kylylahti
Cu, Au, Zn, Ni, Co
52
2014-11-10
Patented process with high recoveries
Kankberg – leaching of gold and tellurium from goldtellurides
Conceptual study initiated 2008
‒ Conventional leaching plant, method not an option
‒ A hot leaching process developed
‒ Boliden patent
‒ Gold recovery 85% (without 45%)
‒ Tellurium leaching process developed
‒ Tellurium recovery 65%
New process commissioned 2011
CMD 2014
53
2014-11-10
Restructuring Tara for improved profitability
Decrease mobile fleet
Optimization on-going
Lowering headcount
2013
2014 Q3
2015
CMD 2014
700
620
590
54
2014-11-10
Future growth based on solid project pipeline
Future options
Conceptual study
Pre feasibility study
feasibility study
execution
Aitik
45
Laver
Garpenberg
2,5
Cu
Projects may loop, may be rejected
or may be executed due to
market conditions and project conditions
CMD 2014
55
Zn
Au
2014-11-10
In-house project management a success factor
General design by in-house resources
Project management all disciplines with in-house personnel
Suppliers used in parts of the project but no large turn-key assignments
Standardized process - Project manual with continuous improvements from
previous projects A36. BoRe, Garpen, A45.
Key individuals assures continuity and experience sharing
Conceptual
Study
CMD 2014
Prefeasibility
Study
Feasibility
study
56
Implementation
2014-11-10
Garpenberg – Set for 2.5 Mtonnes
CMD 2014
57
2014-11-10
Aitik45
45 (38) mton annually, +20%
Reserve grade 0.22 (0.24)
‒ Reserves 1 085 (633) mtonnes
‒ Life of mine 2040 (2030) years
‒ Copper life of mine 2 348 (1 471) ktonnes
Capex
‒ New crushers with improved reliability
‒ Lower stripping, approx. 0.5
‒ TMF
-10% costs per ton of ore
‒ Economies of scales
New environmental permit
‒ In all, in according to our application
CMD 2014
58
2014-11-10
Managing pushbacks to optimize financial
performance
Ö
Sa2
CMD 2014
59
2014-11-10
Adjusted mine plan Aitik
New environmental permit fall 2014
45 Mton 2017
Production 2015, 40 Mton
Life of mine Cu grade unchanged 0.22%
Cu grade 2015 and 2016 0.21%
2017-2019 over average grade
CMD 2014
60
2014-11-10
Increased production with new crusher
Improved reliability – proven design
Existing with
reinforcements
CMD 2014
New
61
2014-11-10
Further growth options
Laver
Kylylahti
‒ Near mine
‒ Depth
‒ Satelites
‒ Outokumpu Field
Laver
‒ Application for mine concession
Q3 2014
‒ Next step, pre feasibility
CMD 2014
62
2014-11-10
Exploration, an unique opportunity
”Malmfälten”
Skellefte field
Outokumpu field
Bergslagen
CMD 2014
63
2014-11-10
Kylylahti – near mine exploration
CMD 2014
64
2014-11-10
Outokumpu Area – Copper and Nickel Deposits
Kokka
Luikonlahti
Saramäki
Kylylahti
Perttilahti
Vuonos
Riihilahti
CMD 2014
Keretti
Hautalampi
65
2014-11-10
Delivering operational excellence
Operational
excellence
Productivity - availability
Metallurgy
Tara transformation
Project management
Organic expansion
Focusing on
profitable growth
M&A
CMD 2014
66
2014-11-10
Disclaimer
This presentation has been prepared by Boliden for information purposes only and as per the
indicated date. Boliden does not undertake any obligation to correct or update the information or
any statements made therein. Certain statements in this presentation are forward-looking and are
subject to risks and uncertainties.
Nothing contained herein shall constitute any representation or warranty as to accuracy or
completeness. Boliden has not made any independent verification of the information obtained
from third parties.
Nothing in this material shall be construed as an offer or solicitation to buy or sell any security or
product, or to engage in or refrain from engaging in any transaction.
Boliden does not accept any liability whatsoever arising from or in connection with the use of this
information.
Save as by prior approval in writing, this material may not be copied, transmitted or disclosed,
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CMD 2014
2014-11-10
Capital Markets Day
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