patrick ammerlaan metals director ba smelters...rods, bars, & sections western europe; france,...

Boliden Customers

Patrick AmmerlaanMetals Director BA Smelters

1Capital Markets Days - November 1-2, 2010

Boliden’s Copper and Zinc Customers

� Our customers

� Demand drivers

Topics

� Current customer demand & trends in customer behaviour

� Boliden’s competitive edge


Our Customers - Copper


*estimate

Semis output Western Europe 2010-2015 -5,6% (-205kt)

� Peak in 2011-2012 caused by higher output of Wire rod in Germany and Cu alloy products in Germany and Italy.

1 400

1 600

1 800

2 000

Wire Rod

Cu Alloys

kt

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Capital Markets Days - November 1-2, 2010 4

0

200

400

600

800

1 000

1 200

2010

2011

2012

2013

2014

2015

Cu Alloys

Tubes

Plate, Sheet & Strip

Other

Rods, Bars, & Sections

Western Europe; France, Germany, Italy, Spain, UK, OtherSource BH Q32010

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Boliden Copper – balanced sector recovery(trend lines from Jan-09)


Our Customers - Zinc


Western European zinc consumption by first use

� Western European Zinc Consumption to increase 8.1% or 178 Kt between 2010-2015

47%

12%

19%

9%

8%

5% Galvanising

Rolled & Extruded ProductsBrass Semis & CastingsDiecasting Alloys

Oxides & Chemicals

2010


12%Miscellaneous

0

200

400

600

800

1 000

1 200

2010 2011 2012 2013 2014 2015

Galvanising Brass Semis Diecasting Alloys Other

Kt - Zn

Source: Brook Hunt a Wood Mackenzie Company LTO Sept 2010

Boliden zinc –steel mills lead recovery(trend lines from Jan-09)


Boliden sales - recovery

� Zinc and Copper demand are a function of industrial production� Particularly supported by German auto exports

� Balanced sector recovery for Copper: star demand driver for Copper rod is Copper winding wire: demand is up due to strong demand for electrical equipment

� Main demand driver for Zinc are the Continuous Galvanizers for automotive sector

� Boliden market share in Western Europe:� Zinc: 25%� Refined Copper: 10%


Change in customer behaviour –benefits Boliden

The combination of:� Higher focus on stocks

and� Low visability & short order books

Is resulting in:Is resulting in:� Less stocks ”in the total pipeline”� Faster changes in demand� Benefits local European suppliers

that can deliver at short notice


Boliden’s edge –Copper customer’s perspective

� Reliable & partly-integrated Supplier� Delivery Reliability� Product Quality

� Fluent Logistics� Fluent Logistics

� Local European Supplier


Boliden’s edge –Zinc customer’s perspective

� Integrated & Reliable Supplier� Delivery Reliability� Product Quality

� Galvanizing Alloys� ZiNiGal®�

� ZiNiGal®� MagiGal®

� Reducing galvanizing costs

� Technical Support

� Risk Management Services


ZiNiGal®

� ZnNi(Bi) alloy for General Galvanizers

� Reduction of zinc layer thickness

� Reduces Zn consumption� Reduces Zn consumptionby 10 – 15%*

� Ready made alloy: no mixing

� Improved process control


Reduced coating thickness ZiNiGal vs Zinc different steels and dipping times

0

20

40

60

80

100

120

4 6 8 10 12 14 16

µm

Si + 2.5P < 0.035%

Zn 450¤C

ZnNi 450 ¤C

Log. (Zn 450¤C)

Log. (ZnNi 450 ¤C)

Si + 2.5P = 0.151%

0

100

200

300

400

500

600

4 6 8 10 12 14 16

µm

Zn 450¤C

ZnNi 450 ¤C

Log. (Zn 450¤C)

Log. (ZnNi 450 ¤C)


Dipping Time (min) Dipping Time (min)

Si + 2.5P = 0.224%

0

50

100

150

200

250

300

4 6 8 10 12 14 16

Dipping Time (min)

µm

Zn 450¤C

ZnNi 450 ¤C

Log. (Zn 450¤C)

Log. (ZnNi 450 ¤C)

Si + 2.5P = 0.272%

0

50

100

150

200

250

300

350

400

4 6 8 10 12 14 16

Dipping Time (min)

µm

Zn 450¤C

ZnNi 450 ¤C

Log. (Zn 450¤C)

Poly. (ZnNi 450 ¤C)

MagiGal®

� ZnMgAl alloy for continuous galvanizing

� Increased corrosion resistance

� Reduction of zinc layer thickness� Reduction of zinc layer thickness

� Reduces Zn consumptionby 50 – 80+%

� Ready made alloy: no mixing

� Improved process control


Corrosion protection MagiGal® alloys

� Aluminium + Magnesium increase coating corrosion resistance

� Challenge: Increased brittleness of coating on forming characteristics


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