GarpenbergCapital Markets Day 6 September 2011
Tom SödermanMine Manager, Garpenberg
History of Garpenberg
2011-09-062Boliden Group-CMD 2011
20001920 1940 1960 19801400 1600 1800 1900
~800First C-14 evidence of mining
1000
King Gustav Wasa
1950-53New shaft, headframe, mill
1957Boliden Mineral AB
1923-1957AB Zinkgruvor (Ryllshyttan)
1972Garpenberg N in production
~1750 First mills at Rafshyttan and Hesshyttan
1908 Ryllshyttanconcentrator
1928 Gruvgården shaft, mill
1801 Garpenbergs Herrgård
<1600 Present mine chapel
1998 Discovery of Lappberget
2003 First ore from Lappberget
2004 N and S minesconnected
1872-1879 Avesta-Garpenbergs bruk AB
1880-1911 Garpenbergs bruk AB
xxxx- 1923 Ryllshytte gruf AB
1912-1923 AB Gruvgården
1915Forestry school to Garpenberg
1635-1773 Funk ”dynasty”
1778-1862 Stockenström ”dynasty”
1867-1911 Cornelius ”dynasty”
Hedninga-gruvorna
1486-1527 Gudsberga monastery controls mining
1555 Gustav Wasa ”kungsgård”
1601-16xxKingKarl IX
16xx-1635King Gustav II Adolf
Castegården 1997Forestry school ceases
Medieval mine chapel
2007 Pastefill plant
1989Autogenousgrinding plant
2005-2006 Flotation expansion
1200
16xx-18xxGarpenbergs kopparverk
KingErik XIV
1354 King Magnus Eriksson issues mining privileges
1785Garpenberg church
1485Gudsberga monastery
14xxLime quarry in Garpenberg
1907 Copper concentrator / smelter, Odalfälten
1917 Zinc roaster, Odalfälten
1994Gruvsjön shaft
1950-53New shaft, headframe, mill
1972Garpenberg N in production
1908 Ryllshyttan concentrator
1928 Gruvgården shaft, mill
2007 Pastefill plant
1994Gruvsjön shaft
History of Garpenberg
2011-09-063Boliden Group-CMD 2011
Garpenberg – milled ore tonnes 1957-2010
2011-09-064Boliden Group-CMD 2011
0
200
400
600
800
1 000
1 200
1 400
1 600
1957
1958
1958
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total ore production for period: 34,571 kton
Garpenberg grades 1957-2010
2011-09-065Boliden Group-CMD 2011
0,00
20,00
40,00
60,00
80,00
100,00
120,00
140,00
160,00
180,00
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
1957
1958
1958
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Gr/t
on
%
Lead Zinc Silver/RHS
Garpenberg – key figures
*) Basis average metal prices in 2010: Zink 2,159, lead 2,148 and copper 7,539 USD/ton Silver 20,19 and gold 1,227 USD/oz
2011-09-066Boliden Group-CMD 2011
*) Metal in concentrate. 2007-2010 production has exceededaverage head grades in ore reserve.
Distribution of payable metal*)Msek 2006 2007 2008 2009 2010
Revenues 1,311 1,710 1,163 1,490 1,902
EBIT 850 1 095 466 793 1,124
Milled ore, kton 1,182 1,255 1,365 1,394 1,443
Metal production*) kton
Zink 60,992 71,464 83,938 90,079 86,022
Lead 21,099 25,139 28,514 31,371 29,310
Copper 593 682 581 493 517
Silver, kg 108,082 117,798 130,287 139,141 140,138
Gold, kg 269 244 243 214 234
Zinc50%Silver
28%
Lead19%
Gold2%
Copper1%
Boliden in Garpenberg
310 own employees Appr 100 employed by contractors Turnover > 1000 MSEK Hedemora Community’s largest private employer
2011-09-067Boliden Group-CMD 2011
Safety always first on the agenda !
2011-09-068Boliden Group-CMD 2011
LTI 1996 - 2011
2011-09-069Boliden Group-CMD 2011
17
12 12
16 16
910
5
3
11
5
3
6
12
002468
1012141618
1996 1998 2000 2002 2004 2006 2008 2010
OreMineral concentrates
Mine
Smelter
Concentrator
Zn 6,5 %
Ag 125 g/t
Pb 2,5 %Zn 54 %
1 400 000 t
160 000 t 40 000 t 3 000 t
Metals
Zinc: 82 000 t Lead: 28 000 t
Gold: 230 kg Copper: 420 t
Sphalerite Galena Chalcopyrite
Silver: 136 000 kg
200 000 t
Pb 71% Cu 20%
+Ag+Au
+Ag+Au
Garpenberg – from ore to metals
2011-09-0610Boliden Group-CMD 2011
Tailings pond - Ryllshyttan
2011-09-0611Boliden Group-CMD 2011
??
?
850Z
LappbergetKvarnberget
Dammsjömin.300Z Tyskgården
Finnhyttan
East limb
GarpenbergNorth
KanalOrebody
StrandOrebody
Garpenberg
Dammsjön
Mill
Workshop
Head office
2011-09-0612Boliden Group-CMD 2011
Garpenberg area
2011-09-0613Boliden Group-CMD 2011
1200Z
1000Z
0 Z
200Z
800Z
600Z
400Z
1400Z
1600 Y 3600 Y3200 Y2800 Y2400 Y2000 Y 4000 Y 4400Y 4800 Y 5200 Y
Gransjön
Kaspersbo
StrandKanal
GarpenbergGarpenberg norra
Orereserv
Mineralresources
Potential
Mined-out
Dammsjön
Tyskgården
Garpenberg before Lappberget
2011-09-0614Boliden Group-CMD 2011
1200Z
1000Z
0 Z
200Z
800Z
600Z
400Z
1400Z
Kyrkan-Tyskgården
Finnhyttan
1600 Y 3600 Y3200 Y2800 Y2400 Y2000 Y 4000 Y 4400Y 4800 Y 5200 Y
Gransjön
Kaspersbo
StrandKanal
Kvarn-berget
Lappberget
GarpenbergGarpenberg norra
Kvarnberget
Orereserv
Mineralresources
Potential
Mined-out
Dammsjön
Garpenberg 1/1 2009
2011-09-0615Boliden Group-CMD 2011
0
5 000
10 000
15 000
20 000
25 000
30 000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
kton Garpenberg
Ore reserveMineral resource (measured/indicated)Mineral resource (inferred)Ore production*10
2011-09-0616Boliden Group-CMD 2011
Expansion Garpenberg
17Boliden Group-CMD 2011 2011-09-06
New industrial area‒ New underground facilities‒ New concentrator‒ New infrastructure
Capacity increase from 1.4 to 2.5 millions tonnes of ore/year
Production ramp-up from 2 million tonnes/year 2014 to full production at the end of 2015
Average grades in ore reserve ‒ Zinc 5.4 %‒ Lead 2.5 %‒ Silver 142 g/tonne
Production until 2030 Good geological potential
Technology andproduction
18Boliden Group-CMD 2011 2011-09-06
500 mNew shafts andIndustrial area
ExistingIndustrial area
Overview Garpenberg mining area
2011-09-0619Boliden Group-CMD 2011
1200Z
0 Z
200Z
800Z
600Z
400Z
1400Z
Kyrkan-Tyskgården
Finnhyttan
910 Z870 Z
Gransjön
Kaspersbo
Strand
Lappberget
Potential
Dammsjön
Potential
1000Z
Gruvsjöschaktet Schakt
Garpenberg Garpenberg north
Kvarn-berget
Kanal
New shafts andIndustrial area
Potential
Potential
Potential
Lappberget
Kyrkan-Tyskgården
Dammsjön
Finnhyttan
Mined areas
Ore reserve
Mineral resources
2011-09-0620Boliden Group-CMD 2011
New shafts andunderground facilities
2011-09-0621Boliden Group-CMD 2011
Crushers at -705 and -1 100 meter levels
2011-09-0622Boliden Group-CMD 2011
Crushing and loading station at -1100/1150 meter level
2011-09-0623Boliden Group-CMD 2011
Financials
Capex SEK 3,9 billion
Profitable investment with robust financials
Productivity increases from high levels Improved competitive position Production cost per tonne of ore
decreases by approx. 25 percent
Capex per year, MSEK
2011 2012 2013 2014850 1 600 1 300 250
24Boliden Group-CMD 2011 2011-09-06