From mountains and rocks to copper, silver and gold
Ulf Marklund
Director Business Development
Boliden Mines
Agenda
1. THIS IS BOLIDEN
2. LOGISTICS – CASES FROM A MINE
AND A SMELTER
3. GENERAL ASPECTS ON BOLIDEN
TRANSPORTS
4. CHALLENGES
Boliden Group
2
2011
It all started in 1924...


…when gold was discovered at
Fågelmyran in Västerbotten
The first ore saw the light of day in
1926, and the Rönnskär smelter began
its operations in 1930
Boliden Group
3
2011
Boliden today
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Nordic metals company with a
commitment to sustainable
development
Core competence within the fields of
exploration, mining, smelting and
metals recycling
Net sales in 2011 totalled SEK 40
billion and there were a total of 4,400
employees
Boliden Group
4
2011
Overview – Boliden’s Production Entities
Rönnskär (Sweden)
Copper Smelter

Aitik (Sweden)
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Copper Mine
Boliden Area (Sweden)
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Zinc /Copper and Gold Mines
Garpenberg (Sweden)
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Arctic Circle
Zinc/Silver Mine
Harjavalta/Pori (Finland)
Tara (Ireland)
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Zinc Mine
Copper Smelter
Kokkola (Finland)

Zinc Plant
Odda (Norway)

Zinc Plant
Bergsöe (Sweden)

Smelters
Mines
Lead Smelter
Organic growth – ongoing projects
2010
Aitik
Expansion
Cu-Au
Boliden Group General
2012
Rönnskär
E-scrap
Au, Ag, Cu
2014
Kankberg
Au, Te
6
Kokkola
Zinc smelter
Ag recovery
2015
Garpenberg
Expansion
Zn, Ag, Pb
11/9/2012
Production volumes 2011
Copper
Mines (25%)
Smelters
Zinc
Mines (60%)
Smelters
Production,
tonnes
81,205
335,771
Production,
tonnes
283,217
460,552
Gold
Mines (30%)
Smelters
Production, kg
3,681
12,848
Silver
Production, kg
Mines (50%)
231,388
Smelters
488,147
Boliden Group
7
2011
Suppliers to the European metals industry
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Concentrate from our own and
external mines is sold to our own and
external smelters
Zinc metal is sold to steelworks for
rust-proofing (galvanising) (Ca 200
customers)
Copper metal is sold to wire rod and
copper rod manufacturers (ca 20
customers)
Lead is sold to car battery
manufacturers
Gold and silver is sold for industrial
production and as an investment
object
Sulphuric acid from smelters to for
example paper and chemical industry
Boliden Group
8
2011
Base Metals - Four Markets
Re-
Scrap
cycling
Mining Ore
processing
Concentrates
Smelting
Metals
Consumables
9
11/9/2012
Basic material flow
Ore from mines to concentrators
Concentrate to own/external smelters
Metal from smelters to customer
Bi-products from smelters to customer
External concentrate+ input material to smelters
About 2 mill tons transported
About 1 mill tons Boliden concentrate
About 860.000 ton metal
About 1,5 mill tons Sulphuric acid
About 1,5 mill tons concentrate+ input material
Mines
smelter
concentrator
To external customores
Boliden Group
10
From external sourses
2011
Two Cases – Aitik Mine – Rönnskär Smelter
Boliden Group
11
2011
Base Metal Specifics
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Affärsområde gruvor
Continuous processes
Big transport volumes
Transports between fixed points
Big values
“Unlimited” output
12
2007
Aitik Expansion 2006-2010
13
Business Area Mines
Expansion 36 Mtonnes
2012-11-09
14
AITIK 36
Aitik Transport Considerations
Material to handle
 36 Mton ore
 40 Mton waste rock
 250 Kton concentrate
 Consumables (diesel, reagents, lime, explosives, spare parts etc)
 Sewage sludge for reclamation (of waste rock dumps)
Techniques available
 Truck haulage (diesel, electric)
 Belt conveyors
 Hoisting systems
 Pumping (“Pipelining”)
 Size of equipment - automation
Boliden Group
15
2011
Final Ore Handling System
NEW RAILWAY AND TERMINAL
NEW PROCESSING PLANT
BELT CONVEYER
CRUSHER
OLD FACILITIESS
TRANSPORT TUNNELS
CRUSHER
•
•
•
2012-11-09
Three crushing stations, incl. two in the open pit
Semi mobile crushers, 8,000 t/hr
New conveyor belt system with a total length of 7 kms, 3.5 kms of which is underground
16
AITIK 36
Mine Equipment
TG
Dispatch System
TG
Rönnskär
Expansions
2000 Major expansion of copper
capacity
2012 Increase of electronic recycling
to 120,000 tonnes per year,
making Rönnskär the biggest escrap recycling facility in the
world
Key data
2011
Processing, tonnes,
Copper (primary and
secondary materials) 826,116
Production, tonnes,
Copper cathodes
219,316
Operating profit
470
Investments
1,074
Average no. employees
768
Boliden Group
19
2011
Main concerns when contracting freight
Copper price
USD/t
LME Inventory
Shanghai Inventory
COMEX Inventory
Price
Price Q avg
11 000
Tonnes
1 600 000
10 000
1 400 000
 Reliability
9 000
1 200 000
8 000
7 000
 Lead times
1 000 000
6 000
800 000
5 000
 Costs
600 000
4 000
3 000
400 000
2 000
200 000
1 000
0
0
2003
2004
Boliden Group
2005
2006
2007
2008
2009
2010
2011
2012
20
2012-05-03
Capital binding vs. Seafreight – case Rönnskär
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Daily production about 600 tons
Need 5-7 days to build up cargo
Building stock = unacceptable capital binding
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
600 ton
day 1
day 2
day 3
day 4
day 5
Boliden Group
21
day 6
day 7
2011
Solution – train instead of vessel

Daily trainservice RönnskärHelsingborg
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Metal southbound, E-scrap in container
nortbound

We ”empty” Rönnskär every day =
minimal capital binding

High utilization gives cost efficiency

Rather realible (exception hard winters)
Boliden Group
22
2011
Boliden Transport General Aspects
Boliden Group
23
2011
Boliden Sea Transports
• North Sea – Baltic Sea
• General cargo/Bulk carriers
• Side Door vessel on metal from Odda
• Cargo sizes generally 4.000-8.000 tons
• COA based, < 10 spot/year
Boliden Group
24
2011
Boliden Sea Transports - Trades
Concentrate
Dublin
Dublin
Cork Rönnskär
Gävle
- Kokkola
- Odda/Cont
- Kokkola
- Kokkola/Odda/Cont
- Kokkola/Odda/Cont
150 kton
200 kton
30 kton
120 kton
200 kton
700 kton
Metal
Kokkola
Odda
Menty
- Rostock/Amsterdam
- Immingh./Amsterdam
- Hamburg
250 kton
120 kton
30 kton
400 kton
Other
Cont
Rönne
Poland
Rö/Menty
- Odda
- Rönnskär
- Rönnskär
- Norw/UK/Cont
100 kton (flu+al.hy)
140 kton (sand)
60 kton (coal)
200 kton (H2SO4)
500 kton
FOB/DES
Total about
Boliden Group
1,500 kton
3,100,000 tons
25
2011
Boliden Rail Transports - Trades
Concentrate
Aitik
Navan
Mentylouto
- Rönnskär
- Dublin
- Harjavalta
300 kton
400 kton
500 kton
1.200 kton
Metal
Rönnskär
Harjavalta
- Helsingborg
- Pori
230 kton
120 kton
Pori
- Mentylouto
50 kton
400 kton
-
Other
Italy
- Rönnskär
Helsingborg - Rönnskär
Smed/Hofors - Rönnskär
Jordbro
- Aitik
20 kton (ash)
70 kton (e-scrap)
20 kton (dust)
50 kton (sludge)
160 kton
Total about
Boliden Group
1,760,000 tons
26
2011
Boliden Road Transports - Trades
Ore/ Concentrate
Mines
- Boliden
Boliden
- Rönnskär
Garpenberg - Gävle
1.500 kton
100 kton
200 kton
1.800 kton
Metal
Within Nordic
Helsingborg - Europe
Pori
- Europe
Amsterdam - Europe
Rostock
- Europe
Immingham - UK
50 kton
100 kton
30 kton
110 kton
20 kton
20 kton
350 kton
Other
Within North Sweden
Within Nordic
Within Sweden
300 kton (slag etc)
500 kton (s-prods)
100 kton (other)
900 kton
Total about
Boliden Group
3,000,000 tons
27
2011
CHALLENGES
 Sulphur directive
 Poor rail infrastructure Sweden
 Road maintenance
Nordic based industry in need of improved cost
efficiency in sea transportation
SECA area
Boliden Group
Boliden production units
29
2011
Solution - Break bulk liner service for Baltic ?
 Consolidate quantity
 Industries needs to cooperate more
 Vessels with optimal size/fuel consumption ratio
 Efficient cargo operations
Boliden Group
30
2011
Poor railway infrastructure Northern Sweden
• Congested
• Sensible to disruptions
• No alternative routes
• Restricted train weight
due to line configuration
Preferred Solution – Norrbotnia Railway
 New railway between Umeå and Luleå
Boliden Group
32
2011
Metals for modern life
Disclaimer
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This presentation has been prepared by Boliden for information purposes only. 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.
This presentation has been prepared as per the indicated date and Boliden does not undertake
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may have been expressed may be subject to change without notice.
Certain statements in this presentation are forward-looking and are based on plans, estimates,
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to the factors explicitly discussed, other circumstances may also have a material effect on the
actual outcome. Such factors include, but are not limited to, general economic or political
conditions, fluctuations in exchange or interest rates or metal prices, technological factors,
interruptions in supply or production, actions of courts, regulators, governmental agencies,
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Boliden Group
34
2012-05-03