boliden mines introduction and strategy · boliden mines introduction and strategy mikael staffas...

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



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



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



No of LTI:S

Frequency

Lost time injuries (LTI) including contractors, Boliden Mines

World Class Productivity


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



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



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



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



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



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



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



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



Natural Area

Protective

Layer

Covering

Layer

Waste rock and

contaminated

substances

R&D with many partners



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



Ventilation on demand - Kankberg

Driverless trucks - Kristineberg Mine



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



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

boliden mines introduction and strategy · boliden mines introduction and strategy mikael staffas...

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