Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager Capital Markets Day 2014 11 November 2014 CMD 2014 - Boliden Garpenberg 1 2014-11-11 High productivity and cost efficiency Strong technology know-how Integrated control system Mobility and Wlan Advanced maintenance system Autogenous grinding High degree of automation ‒Fully automatic process from crushing to filtering of final product AutoMine system Optimising asset through mine design Detailed long-term planning CMD 2014 - Boliden Garpenberg 2 2014-11-11 Garpenberg – One of the world’s oldest and most modern mine Sweden’s oldest mining area in operation Deposits first mined in the 1200s Acquired by Boliden in 1957 CMD 2014 - Boliden Garpenberg Milled ore, kton (1957-2014) 3 2014-11-11 From ore to metals 2013 Ore Mineral concentrates 1 495 000 t Mine 166 000 t Concentrator Zn Lead conc. Copper conc. 127 000 t 36 000 t 3 000 t Zn 55% Pb 70% 5,2 % Ag 150 g/t Pb Zinc conc. 2,1 % +Ag +Au Cu 18% +Ag +Au Smelter Zinc: 70 000 t Silver: 160 000 kg Lead: 25 000 t Gold: 280 kg Copper: 520 t CMD 2014 - Boliden Garpenberg 4 Metals 2014-11-11 Garpenberg 2.5 expansion From 1.4 to 2.5 mt of ore/year Production start May New industrial area ‒ New underground facilities ‒ New concentrator ‒ New infrastructure Capex SEK 3.9 billion Boliden’s 2nd largest investment Reserves 36.3 (25.6) Mton Resources 38.1 (44.5) Mton Note: Reserves and resources: 2013-12-31 (2012-12-31). Resources excl. mineral reserves. CMD 2014 - Boliden Garpenberg 5 2014-11-11 Underground facilities Production shaft Ventilation shafts Personnel shaft CMD 2014 - Boliden Garpenberg 6 2014-11-11 New industrial area CMD 2014 - Boliden Garpenberg 7 2014-11-11 Inauguration of Garpenberg – 26 August 2014 CMD 2014 - Boliden Garpenberg 8 2014-11-11 In-house project management key factor to deliver on time and budget Time management Information Finance IT coordinator Steering group Reference group Purchasing Site operation coordinator Legal Project coordinator CE-certification / Quality Project Manager Health & safety Underground Concentrator Civil works Power & controls Design Tech Commissioning Process Design Tech Commissioning Design Tech Process Design Tech Commissioning CMD 2014 - Boliden Garpenberg 9 2014-11-11 High level of productivity Zinc - underground mines 2016 tonne per man hour 5.0 Citronen project (Grönland) 4.5 4.0 3.5 Garpenberg 3.0 777 (Kanada) Pyhäsalmi (Finland) 2.5 Doe Run (USA) Bolidenområdet 2.0 Tara Aguas Tenidas (Spanien) 1.5 Tayahua Project (Mexiko) 1.0 Cerro Lindo (Peru) 0.5 Kazakhmys (Kazahstan) 0.0 0 1 2 3 4 5 6 Million tonne ore production per year Source: Wood Mackenzie CMD 2014 - Boliden Garpenberg 10 2014-11-11 10 Integrated control system drives efficiency One of the first mine with an integrated control system for mine and mill Improved control ‒ ‒ ‒ ‒ General overview Sequence start and stop Mobile control room 130 HD cameras Increased process efficiency ‒ Analysing production disturbances with alarm lists and event log ‒ On-stream analysis system, 24 different samples Lower costs for maintenance ‒ Integrated with maintenance system CMD 2014 - Boliden Garpenberg 11 2014-11-11 Mobile control room increases flexibility CMD 2014 - Boliden Garpenberg 12 2014-11-11 Advanced maintenance system for high availability Monitors critical machines to minimise breakdowns ‒ Online vibration measurements Integrated with control system ‒ Improved surveillance ‒ Easier access to maintenance system ‒ Easier to make a work order ‒ Easier to get access to drawings and other documents ‒ Easier to make notice of error ‒ Diary improves visibility over time CMD 2014 - Boliden Garpenberg 13 2014-11-11 WLAN enables high degree of automation and access of information Implemented in vital parts of mine Condition for autonomous loaders Plans for status control and operational guidance CMD 2014 - Boliden Garpenberg 14 2014-11-11 Autogenous grinding – lower costs Ore grinds itself Lower costs ‒ No external grinding media added ‒ Less mill liner wear Grinding technology in all Boliden mines CMD 2014 - Boliden Garpenberg 15 2014-11-11 Higher productivity through autonomous loaders – AutoMine system Loading and hauling the ore after blasting Controlled remotely via WLAN ‒ Operator can be in a control room ‒ Loading and unloading by remote control by operator ‒ Transporting between loading and unloading autonomous Ability to operate during blasting Improved safety CMD 2014 - Boliden Garpenberg 16 2014-11-11 Mine design Designing for life of mine ‒ Capex planning ‒ Production planning Optimizing the NPV of the ore body Minimize lead time between work processes at faces/stopes/ benches Mining is a huge construction project CMD 2014 - Boliden Garpenberg 17 2014-11-11 CMD 2014 - Boliden Garpenberg 18 2014-11-11 Garpenberg New shafts and Industrial area Gruvsjöschaktet Garpenberg north Schakt 0Z Dammsjön 200Z Lappberget Potential Lappberget Dammsjön 400Z 600Z KyrkanKyrkanTyskgården Tyskgården Finnhyttan Finnhyttan Gransjön 800Z Kaspersbo 870 Z 910 Z Strand 1000Z Potential Potential 1200Z Kanal Potential Mined areas Potential 1400Z Kvarnberget Ore reserve Mineral resources CMD 2014 - Boliden Garpenberg 19 2014-11-11 High productivity and cost efficiency Strong technology know-how Integrated control system Mobility and Wlan Advanced maintenance system Autogenous grinding High degree of automation ‒Fully automatic process from crushing to filtering of final product AutoMine system Optimising asset through mine design Detailed long-term planning CMD 2014 - Boliden Garpenberg 20 2014-11-11 Disclaimer This presentation has been prepared by Boliden for information purposes only and as per the indicated date. 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CMD 2014 - Boliden Garpenberg 21 2014-11-11 Capital Markets Day 90 years of knowledge delivering today’s value