Boliden Mines
Introduction and Strategy
Mikael StaffasPresident Boliden Mines
Integrated business with mines and smelters
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
MINES
SMELTERS
HEAD OFFICE
Boliden’s metals – what are they used for
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
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
Catalyzers High Tech
Tellurium Solar
Cobalt Batteries
Gold
Silver
Finance Jewelry
Electronics
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Metal Position
Copper 2
Zinc 1
Lead 1
Nickel 2
Palladium
Platinum
1?
Tellurium 1 (also world wide)
Cobalt 1?
Gold
Silver
2-3
Boliden Mines – position in EU
Safety Developement
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
No of LTI:S
Frequency
Lost time injuries (LTI) including contractors, Boliden Mines
World Class Productivity
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE SOURCE: Wood Mackenzie 2017, * Open pit and mines with mix open pit-underground
Garpenberg
Tara
Boliden Area
0
1
2
3
4
0 5 10 15 20
Tonnesper man
hour
Million tonnes ore milled per year
Zinc – Underground mines
Aitik
0
5
10
15
20
25
30
35
0 20 40 60 80 100 120 140
Tonnesper man
hour
Million tonnes ore milled per year
Copper – Open pit mines*
Improved Cost Position
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Bo
lid
en
Are
aT
ara
Bo
lid
en
Are
a
Garp
en
berg
Tara
Bo
lid
en
Are
a
Ait
ik
Bo
lid
en
Are
a
Ait
ik Kyly
lah
ti
Zn 2006 2016
Cu 2006 2016G
arp
en
berg
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
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Aitik-Rönnskär Chuquicamata-Chinesesmelters
Salobo-Aurubis Kevitsa-Harjavalta Neves Corvo-Harjavalta
KGHM-KGHM
Mine, diesel Mine, to dispatch Smelter
Mine + Smelter, CO2 per kt Cu
Mine, electricity Transportation
Exploration
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
12
3
4
5
6
Kevitsa-Sakatti - Cu & Ni
Kiruna-Gällivare - Cu
Skellefte district - Polymetallic
Outokumpu area - Polymetallic
Bergslagen - Zn & Ag
Tara - Zn & Pb
Life of mine
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Our largest and most profitable mines have long life and competitive positions
0
5
10
15
20
25
30
35
40
Aitik Boliden Area Garpenberg Kylylahti Tara Kevitsa
Reserve life, years
2006 2016
General Challenges
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
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
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
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
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
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
Copper and Nickel mine acquired in 2016
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
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Natural Area
Protective
Layer
Covering
Layer
Waste rock and
contaminated
substances
R&D with many partners
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
P&H
CAT
EKAHAU
VOLVO
SISCO
SANDVIK
LKAB
MOBILARIS
ASCOM
TELIASONERA
SOGETI
ATLAS COPCO
ABB
JAMA
IMB
ERICSSON
Partnership with ABB
and Mobilaris
Launched April 2016
50 % reduced energy
consumption
Reduced CO2
corresponding to 50 cars
Cost saving
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Ventilation on demand - Kankberg
Driverless trucks - Kristineberg Mine
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Q1-Q3 2017 - Boliden Mines
EBIT 4,501 (1,688) MSEK
ROCE 24% (10)
Improved prices & terms against 2016
Capex 2,458 (1,832) MSEK
Record production Aitik
Good development of Kevitsa
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
High production, record profit
0
600
1 200
1 800
2 400
3 000
3 600
4 200
4 800
5 400
6 000
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
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
R4Q, MSEKMSEK
Quarterly EBIT Rolling 4Q EBIT