Boliden Garpenberg – High productivity and cost efficiency

Boliden Garpenberg –
High productivity and
cost efficiency
Hans Jönsson, General Manager
Capital Markets Day 2014
11 November 2014
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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
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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)
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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
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Metals
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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.
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Underground
facilities
Production shaft
Ventilation shafts
Personnel shaft
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New industrial area
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Inauguration of Garpenberg – 26 August 2014
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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
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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
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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
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Mobile control room increases flexibility
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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
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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
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Autogenous grinding – lower costs

Ore grinds itself

Lower costs
‒ No external grinding media added
‒ Less mill liner wear

Grinding technology in all Boliden
mines
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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
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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
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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
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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
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2014-11-11
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,
whether in print, electronic or any other format. All rights to the material are reserved.
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