Boliden Ab · OMXSTO:BOL
Boliden Ab — Investor Day (June 2007)
90 slides from Boliden Ab's investor day presentation, Jun 5, 2007
Slide 1: Capital Markets Day 2007
Boliden Capital Markets Day 2007 Jan Johansson, President and CEO Boliden AB 1 2007-06-05
Slide 2: Boliden's Production Entities
Boliden’s Production Entities Aitik (Sweden) Rönnskär (Sweden) Boliden g Copper mine g Copper smelter Boliden Area (Sweden) Harjavalta/Pori (Finland) g Copper smelter g Zinc mines Garpenberg (Sweden) g Zinc mines Kokkola (Finland) Tara (Ireland) g Zinc smelter g Zinc mine Odda (Norway) g Zinc smelte
Slide 3: Boliden's goals
Boliden’s goals • To be Europe’s leading supplier of copper and zinc • To be the world leader in the recycling of electronic scrap • To be one of the world’s most cost-effective metal producers • To generate a return on capital employed exceeding 10 per cent over a business cycle • To achieve a net
Slide 4: Integrated value chain – from mining and smelting to metal sales
Integrated value chain – from mining and smelting to metal sales Mines Smelters Sales EXPLORATION MINING RECYCLING SMELTING & MARKET OPERATIONS REFINING & SALES Advantages: Full process control ensures a high and Supply reliability consistent quality One single point of contact for High guar
Slide 5: The Metals Market
The Metals Market Boliden AB 5 2007-06-05
Slide 6: Continued strong demand for zinc and copper
Continued strong demand for zinc and copper Industrial Production 20 18 16 14 Growth % 12 10 8 6 4 2 0 2004 2005 2006 Q3 2007 USA W Europe Japan China Boliden AB 6 2007-06-05
Slide 7: Zinc price and stock levels (LME)
Boliden AB Ja n- 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 0 Fe 5 b- M 05 USD/tonne ar -0 Ap 5 r- 0 M 5 ay -0 Ju 5 n- 0 Ju 5 l- Au 05 g- 0 Se 5 p- 0 O 5 ct -0 N 5 ov -0 D 5 ec -0 Ja 5 n- 0 Fe 6 b- M 06 ar -0 7 Ap 6 r- 0 M 6 ay -0 Ju 6 n- 0 Ju 6 l-0 Au 6 g- 0 Se 6 p- 0 O 6 ct -0 N 6 Zinc
Slide 8: China's net imports
China’s net imports Chinese Net Imports of Zinc 2004-2007 60 000 40 000 20 000 Tonnes 0 -20 000 -40 000 -60 000 ok ok ok ja ap ju ja ap ju ja ap ju ja ap n- n- n- n- l-0 l-0 l-0 t-0 t-0 t-0 r- 0 r- 0 r- 0 r- 0 04 05 06 07 4 5 6 4 5 6 4 5 6 7 Source: Metals Insider Boliden AB 8 2007-06-05
Slide 9: LME Copper Price and Stocks
Boliden AB Ja n- 1 200 1 980 2 760 3 540 4 320 5 100 5 880 6 660 7 440 8 220 9 000 0 Fe 5 b- M 05 USD/tonne ar -0 Ap 5 r- M 05 ay -0 Ju 5 n- 0 Ju 5 l-0 Au 5 g- 0 Se 5 p- 0 O 5 ct - N 05 ov - D 05 ec -0 Ja 5 n- 0 Fe 6 b- M 06 ar -0 9 Ap 6 r- M 06 ay -0 Ju 6 n- 0 Ju 6 l-0 Au 6 g- 0 Se 6 p- 0 LME Coppe
Slide 10: China's import of copper
Chinas’ import of copper April 07 Source: Metals Insider Boliden AB 10 2007-06-05
Slide 11: Global zinc consumption exceeds total production
Global zinc consumption exceeds total production Boliden AB 11 2007-06-05
Slide 12: Larger copper consumption than production in many regions
… and larger copper consumption than production in many regions Boliden AB 12 2007-06-05
Slide 13: Global zinc production and smelter demand
Global zinc production and smelter demand kt Zn 18000 ~5 % 16000 Probable B Projects ~3 % Probable A Projects 14000 Base Case Production Capability Smelter demand ~3% grow th 12000 Smelter demand ~5% grow th 10000 8000 6000 4000 2000 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Boliden AB 13 20
Slide 14: Global copper production and smelter demand
Global copper production and smelter demand kt 35000 Possible Expansions Probable Expansions 30000 Highly Probable Expansions ~5 % 25000 Mine Production ~3 % 20000 Smelter Demand ~3% grow th Smelter Demand ~5% grow th 15000 10000 5000 0 1990 1995 2000 2005 2010 2015 Boliden AB 14 2007-06-05
Slide 15: Potential for continued growth for metals
Potential for continued growth for metals 2006 Copper consumption vs. GDP per capita 12,0 Japan 11,0 High increase in metal demand 10,0 W Europe 9,0 Canada 8,0 Saudi USA Australia 7,0 Malaysia Kg per capita 6,0 5,0 Russia Brazil Top 5 population 2006 Kazakhstan 48% of world population 4,0 Indonesia
Slide 16: Potential for continued growth for metals
Potential for continued growth for metals 12,0 11,0 10,0 Brazil Large populations Potential Indonesia * 9 kg per capita 9,0 = 28 M tonnes China 8,0 India copper Russia 7,0 + 60% from today’s global Kg per capita 6,0 copper consumption 5,0 17,5 M tonnes (2006) 4,0 3,0 2,0 1,0 0,0 0 5 000 10 000 15 00
Slide 17: Focus on value creation
Focus on value creation • Boliden is operational and financial reconstructed • Cost efficient operations • Strong cash flow • Leading edge treatment technology • World leading with patent technology for metal recycling • Intensified exploration activities, tripled ore reserves in Q1 2007 • Organic g
Slide 18: Financials
Financials Boliden AB 18 2007-06-05
Slide 19: Result first quarter 2007
Result first quarter 2007 Quarter 1 Change SEK m 2007 2006 % Revenues 8 455 7 337 15 Operating profit (EBIT) 1 286 1 750 - 27 Profit before tax 1 261 1 698 - 26 Earnings per share, SEK 3.18 4.28 - 26 Cash flow from operating activities 1 490 999 49 Return on capital employed (%) 28 44 Net debt (%) -
Slide 20: Result first quarter 2007, deviations compared with fourth quarter 2006
Result first quarter 2007, deviations compared with fourth quarter 2006 Quarter 1 / Quarter 4 SEK m 2007 2006 Diff. Operating profit (EBIT) 1 286 2 225 - 939 Net price deviation - 894 of which, Currencies - 88 Hedges 138 Definite prices (MAMA) - 310 Stock results 132 Treatment charges - 197 Price de
Slide 21: Operating profit per segment
Operating profit per segment Quarter 1 Change SEK m 2007 2006 % Mines 787 732 8 Smelters 544 1 029 - 47 Others - 45 - 11 - 309 The Boliden Group 1 286 1 750 - 27 • Mines: Prices and terms improved operating profit by SEK 444 million but volume decreases, mainly due to planned lower grades at the Ait
Slide 22: Cash Flow First Quarter
Cash Flow First Quarter • Cash flow from operating Operating profit before depreciation (EBITDA), SEK m activities SEK 1 490 million (SEK 999 m) 3 000 2 779 2 551 • Cash flow from investment 2 500 2 421 activities SEK -373 million 2 079 (SEK -441 m) 2 000 1 637 • Free cash flow SEK 1 117 1 500 milli
Slide 23: Cost Structure of the Boliden Group Q1 2007
Cost Structure of the Boliden Group Q 1 2007 Depreciations and others Energy 16% 18% External services 16% Consumables 17% Transports 5% Personnel 28% Boliden AB 23 2007-06-05
Slide 24: Production Mines
Production Mines Zinc (metal content) Copper (metal content) Tonnes Tonnes 100 000 89 031 100 000 89 225 80 090 82 040 80 000 76 288 80 000 60 000 60 000 40 000 40 000 25 617 21 835 19 858 19 515 20 000 20 000 14 703 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2006 2006 2006 2006 2007 2006 2006 2006 2006 2007
Slide 25: Aitik
Aitik Milled production, head grades, metal content Cu tonnes 25 000 0.60% 20 000 0.50% 0.40% 15 000 0.30% 10 000 0.20% 5 000 0.10% 0 0.00% Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Milled prod (ktonnes) 4 342 4 823 4 611 4 705 4 678 Metal content, Cu (t) 19 190 16 964 15 132 14 847 11 116 Ore grades, Cu act. 0
Slide 26: Boliden Area
Boliden Area Milled production, head grades, metal content Zn tonnes 30 000 8.0% 7.0% 6.0% 20 000 5.0% 4.0% 10 000 3.0% 2.0% 1.0% 0 0.0% Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Milled prod (ktonnes) 447 401 380 450 454 Metal content, Zn (t) 21 010 18 812 14 979 16 849 18 229 Ore grades, Zn act. 6.0% 6.0% 5.6%
Slide 27: Garpenberg
Garpenberg Milled production, head grades, metal content Zn tonnes 20 000 7.0% 6.0% 15 000 5.0% 4.0% 10 000 3.0% 5 000 2.0% 1.0% 0 0.0% Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Milled prod (ktonnes) 269 285 322 305 314 Metal content, Zn (t) 13 227 13 800 17 793 16 172 17 056 Ore grades, Zn act. 5.5% 5.3% 6.0%
Slide 28: Tara
Tara Milled production, head grades, metal content Zn tonnes 60 000 10.0% 9.0% 50 000 8.0% 40 000 7.0% 6.0% 30 000 5.0% 4.0% 20 000 3.0% 10 000 2.0% 1.0% 0 0.0% Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Milled prod (ktonnes) 694 693 710 654 686 Metal content, Zn (t) 54 988 47 478 43 516 49 019 53 746 Ore grades
Slide 29: Production Smelters
Production Smelters Cathode copper Cast zinc (zinc slabs) Tonnes Tonnes 140 000 140 000 114 759 109 566 120 000 120 000 108 455 112 814 112 073 90 029 87 843 90 653 90 072 87 866 100 000 100 000 80 000 80 000 60 000 60 000 40 000 40 000 20 000 20 000 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2006 2006 2006
Slide 30: Share Ownership Structure
Share Ownership Structure Ownership April 30, 2007 Name Share Ownership % Foreign nominee accounts 46 012 599 15.90 AMF 16 301 500 5.63 SEB Funds (incl. Gamla Livförsäkringsbolaget) 9 680 796 3.34 Afa Försäkring 8 837 663 3.05 Swedbank Robur Funds 8 677 923 3.00 Handelsbanken Funds 8 058 234 2.78 Th
Slide 31: Business Area Market
Business Area Market Ulf Söderström, President BA Market Boliden AB 31 2007-06-05
Slide 32: Content
Content •BA Market •Customers •Market development •MAMA pricing Boliden AB 32 2007-06-05
Slide 33: Business model BA Market within the Group
Business model BA Market within the Group Boliden Mines New Mines Commercial terms Concentrate sales External Mines and Smelters BA Market Metal sales Tolling Tolling Boliden Smelters New Smelters Boliden AB 33 2007-06-05
Slide 34: Responsibility for becoming a leading supplier
Responsibility for becoming a leading supplier • Generating value outside the industrial processes • Optimising flows in the value chain • Optimising cash flows • Optimising physical flows • Customer, business and product development High quality Smelting Exploration Mining/Milling Recycling metal p
Slide 35: The Organization of BA Market
Rönnskär The Organization of BA Market Copper Market 15 Zinc Market 1 Common 7 Stockholm Kokkola Odda Zinc Market 3 Zinc Market 7,5 Zinc Market 4 Pori/Harjavalta Copper Market 4 Lemington Spa Common 2 Zinc Market 3 c Espoo Copper Market 6 Zinc Market 4 Common 2 Rotterdam Zinc Market 12 Bergsöe(Swe/D
Slide 36: Content
Content •BA Market •Customers •Market development •MAMA pricing Boliden AB 36 2007-06-05
Slide 37: Zinc customers
Zinc customers Continuoues General Brass Galvanisers Galvanisers Zinc Based Others (zinc sheet, powder, wire) Alloyers Boliden AB 37 2007-06-05
Slide 38: Boliden Zinc Sales by customer segment
Boliden Zinc Sales by customer segment General Galvanizers 20% Zinc Based Alloyers 5% Continuous Galvanizers 55% Brass 5% Others 15% Boliden AB 38 2007-06-05
Slide 39: The galvanizing industry is Europe's largest customer of zinc metal
The galvanizing industry is Europe’s largest customer of zinc metal – and the one experiencing highest growth Zinc Consumption in Europe (2006) Global Zinc Consumption by market sector (2006) Miscellaneous 5% Oxides & Capital Goods Chemicals 10% 8% Industrial Diecasting Alloys equipment 10% 10% Galv
Slide 40: Copper customers
Copper customers Wire Rod Tube Sheet Strip Copper Others Profile Boliden AB 40 2007-06-05
Slide 41: Boliden Copper Sales by customer segment
Boliden Copper Sales by customer segment Sheet Stripe 15% Other 5% Wire Rod 55% Profils 10% Tube 15% Boliden AB 41 2007-06-05
Slide 42: The wire rod industry is the largest customer of copper metal
The wire rod industry is the largest customer of copper metal – power cables are experiencing highest growth Market sector (2006) By Market Sector First use By First(2006) Use Other Transport 13% 11% Construction 35% Consumer Cu Alloys Products 17% 10% Industry Wire Rod Machinery 53% 12% Tube 10% Sh
Slide 43: Strong market share in northern Europe – growth potential in central and southern Europe
Strong market share in northern Europe – growth potential in central and southern Europe ZINC Region/ Total consumption Boliden Boliden country of primary zinc (kt) Sales (kt) market share Nordic 125 125 100% UK 190 85 45% Germany 520 125 25% France 300 35 10% Other 1439 73 5% Europe 2574 443 17% CO
Slide 44: Content
Content •BA Market •Customers •Market development •MAMA pricing Boliden AB 44 2007-06-05
Slide 45: The zinc metal deficit continues to be significant
The zinc metal deficit continues to be significant and needs to be filled by non-EU sources Zinc Balance in Europe Balance Europe Production Total Europe Consumption Total Europe 2700 900 2600 700 2500 500 2400 + 105 300 2300 + 68 100 2200 (100) 2100 - 223 (300) - 271 - 297 2000 - 358 - 398 (500) -
Slide 46: Zinc metal premiums lower since year end
Zinc metal premiums lower since year end but still on historical high level USD/tonne 380 400 360 350 320 320 320 320 320 350 275 265 265 300 230 270 275 265 265 265 250 254 243 180 231 233 200 155 209 210 130 140 177 172 150 158 143 123 100 135 145 130 105 110 100 100 100 100 50 95 95 90 97,5 95 90
Slide 47: Benchmark Zinc TC for 2007 almost settled
Benchmark Zinc TC for 2007 almost settled Year Bas TC Basis Price Escalator Other 2006 128$ 1400$ +14%/-12% 2007 A 300$ 3500$ +8%/-6% 2007 B 300$ 3000$ +8,5%/-6,5% 0% 3000-3750$ Term Contracts Spot Contracts Market 2004 2005 2006 2007 Contracts Jan Feb Mar Apr Base TC 141 126 128 195 250 240 270 Bas
Slide 48: Demand for copper import in Europe is still on high level
Demand for copper import in Europe is still on high level 5000 1000 Consum ption ktonnes Balance in ktonnes 4500 500 Production and 0 4000 -500 3500 -1000 3000 -1500 -1318 2500 -1686 -1460 -1762 -1776 -1725 -1677 -1446 -2000 2000 -2500 1500 -3000 2004 2005 2006 2007 2008 2009 2010 2011 Ba la nc e Eu
Slide 49: Spot TC increasing as copper market tightens
Spot TC increasing as copper market tightens USD/ton 170 155 140 135 150 120 Benchmark 2007 130 115 110 125 USD annual 110 Benchmark 2005 115 USD annual 100 110 113 90 Benchmark 2006 105 USD annual80 80 80 90 93 93 70 70 60 60 70 50 70 70 45 50 50 50 45 45 30 40 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 7
Slide 50: Two year brick system makes changes in copper TC/RC less volatile
Two year brick system makes changes in copper TC/RC less volatile 95 90 100 85 90 75 USD/ton 65 80 60 70 51 60 45 50 40 30 2004 2005 2006 2007 Benchmark TC Boliden TC (2 years brick) Boliden AB 50 2007-06-05
Slide 51: Official TC/RC impact on total revenues
Official TC/RC impact on total revenues Zn Cu TC/RC PP Free M etal Premiums Foot-note:Above figures is from 2006 and the revenue distribution is very dependant on the market situation. Boliden AB 51 2007-06-05
Slide 52: Content
Content •BA Market •Customers •Market development •MAMA pricing Boliden AB 52 2007-06-05
Slide 53: Ownership and valuation of inventories
Ownership and valuation of inventories Type of inventory Ownership Valuation Off-set hedge Str. hedge Concentrates at mines and in Mines Production cost No Yes, partly harbours Raw materials at smelters Market Balance day price Yes No Metal products Market Balance day price Yes No Iron stock (proces
Slide 54: MAMA-Pricing
MAMA-Pricing January QP MAMA Production Delivery of Final Action of concentrate concentrate Pricing January February March Valu- Mines production costs Balance day price (BDP) Month average price MAP = Final price ation P&L BDP – Mines production MAP – BDP (positive or negative) costs Boliden AB 54
Slide 55: Boliden produces metals that make modern life work
“Boliden produces metals that make modern life work” Boliden AB 55 2007-06-05
Slide 56: Business Area Mines
Business Area Mines Jan Moström, President BA Mines Boliden AB 56 2007-06-05
Slide 57: Zinc mining in Europe dominated by Ireland, Sweden and Poland
Zinc mining in Europe dominated by Ireland, Sweden and Poland Source: Raw Materials Data, Stockholm 2006 Boliden AB 57 2007-06-05
Slide 58: Copper mining in Europe dominated by Poland, Sweden, Bulgaria, Portugal
Copper mining in Europe dominated by Poland, Sweden, Bulgaria, Portugal. Russia is also a major copper producer Source: Raw Materials Data, Stockholm 2006 Boliden AB 58 2007-06-05
Slide 59: Aitik
Aitik • Aitik, with copper, gold and silver, is one of Europe’s largest bulk tonnage mines • Mining operations began in 1968 and over the years the mine has been expanded and production has increased • Today’s known ore reserves should last until the year 2025 at current production level • No of emp
Slide 60: Boliden Area
Boliden Area • The Boliden Area comprises four mines, a concentrator and a gold leaching plant • In 1925, Europe's richest gold mine was opened at Boliden • Since then, mining activities have been carried out at 29 mines in the Boliden Area • No of employees 422 Production 2006 Ore 1.7 Mt Metal cont
Slide 61: Garpenberg
Garpenberg • Garpenberg Mine and Garpenberg Norra are Boliden’s mines in the Swedish county of Dalarna • Boliden acquired the Garpenberg mine in 1957 and commenced production at Garpenberg Norra in 1972 • An extensive mineralization, Lappberget, has been discovered. In 2004, production on a wider sc
Slide 62: Tara
Tara • Tara mine in Ireland is the largest zinc mine in Europe • Production started in 1977, and over 62 million tonnes of ore have been mined since then • Investment in an improvement programme and extensions to the mine have reduced unit costs • Boliden acquired Tara at the end of 2003 • No of emp
Slide 63: Business Plan BA Mines
Business Plan BA Mines With the purpose to maintain and create conditions for an increased persistent mine production are the following areas of highest priority: •Cost Efficiency •Exploration •Expansion Boliden AB 63 2007-06-05
Slide 64: Cash Cost Copper USc/lb
Cash Cost Copper USc/lb 120 Subtotal Mine Site 100 Costs Cash Cost 1 80 60 Realisation USc/lb Costs 40 (TC/RC) Credits 20 (by- products) 0 -20 -40 Mine Site Costs etc. are calculated per lb Copper Payable Metal. Note, USD conversion effects Boliden AB 64 2007-06-05
Slide 65: Cash Cost Cu 2006 Brook Hunt
Cash Cost Cu 2006 Brook Hunt Aitik Boliden AB 65 2007-06-05
Slide 66: Cash Cost Zn 2006 Brook Hunt
Cash Cost -Zn 2006 Brook Hunt Garpenberg Boliden Boliden AB 66 2007-06-05
Slide 67: Boliden's mines are considered to be among the most productive in the world
Boliden’s mines are considered to be among the most productive in the world Productivity Ton / man hour 60 55 5 43 4 40 3 2.6 2.3 2 15 2 1,3-1,6 20 global Global average 1 average 0 0 Aitik 18 Mton Aitik 36 Mton Garpenberg Boliden Tara Boliden AB 67 2007-06-05
Slide 68: Potentials
Potentials • At the mines are the potentials mainly costs and productivity. A potential of 20 - 30 %, on the production cost is estimated. • The largest potential in revenues (about 5 %) is in the concentrators, (recoveries and conentrate quality). Boliden AB 68 2007-06-05
Slide 69: Exploration
Exploration The targets for exploration activities during the period 2007- 2011: • 10 years’ long time planning of ore reserves and mineral resources • Contribute to the balance in mine and smelter production, with a special focus on copper • Contribute to increased growth for the mines Boliden AB 6
Slide 70: One of Europe's largest players within base metal exploration
One of Europe’s largest players within base metal exploration • Boliden’s ore base tripled. • Intensified exploration activities at all mine areas during first quarter. • Focus on the Boliden area with new findings at Kristineberg, Renström and Maurliden. • Doubled investment to approx. SEK 300 mill
Slide 71: Field exploration
Field exploration Sweden: • Skelleftefield (Zn, Cu, Pb, Au), • Dorotea (Zn, Cu, Pb), • Bergslagen (Zn, Pb) och • Aitik (Cu, Au, Mo) Ireland: •Tara, •Limerick (Zn, Pb), •Wexford and •Longford-areas Boliden AB 71 2007-06-05
Slide 72: Exploration
Exploration External growth through: • Acquisition of advanced projects, deposits, mines, companies • Joint Venture • Exploration As a logical follow-up after acquisition of deposit/mine Joint Venture Own exploration »Give priority to countries »Acquisition of projects »Joint Venture Boliden AB 72 2
Slide 73: Aitik
Aitik 1 000 000 900 000 800 000 700 000 600 000 Inferred Ktonnes Measured&Indicated 500 000 Proven&Probable 400 000 Production 300 000 200 000 100 000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Boliden AB 73 2007-06-05
Slide 74: Boliden Area
Boliden Area 10000 9000 8000 7000 6000 Inferred Ktonnes Measured&Indicated 5000 Proven&Probable 4000 Production 3000 2000 1000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Boliden AB 74 2007-06-05
Slide 75: Garpenberg Area
Garpenberg Area 20000 18000 16000 14000 12000 Inferred Ktonnes Measured&Indicated 10000 Proven&Probable 8000 Production Ktonnes 6000 4000 2000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Boliden AB 75 2007-06-05
Slide 76: Tara
Tara 20000 18000 16000 14000 12000 Inferred Ktonnas Measured&Indicated 10000 Proven&Probable 8000 Production 6000 4000 2000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Boliden AB 76 2007-06-05
Slide 77: Kristineberg
Kristineberg Orereserv Mineralresource Potential Mined Planned drifts Z0 Drifts Field drilling Target areas Target areas - explored Z500 Einarsson B-Malm K-Zinken Einarsson väst Z1000 J-zonen Y1000 Y1500 Y2000 Y2500 Y3000 Boliden AB 77 2007-06-05
Slide 78: Expansion
Expansion • Aitik • Garpenberg Boliden AB 78 2007-06-05
Slide 79: Expansion Aitik
Expansion Aitik Boliden AB 79 2007-06-05
Slide 80: Expansion Garpenberg
Expansion Garpenberg Plannes drifts Orereserv Drifts Mineralresource Potential Target areas Mined Target areas explored Garpenberg N Garpenberg 0Z 400Z Dammsjön Lappberget Kvar Lappberget 800Z nber 870 Z get 910 Z 870 Z Dammsjön Strandmalmen Kanalmalmen 1200Z Finnhyttan Tyskgården och Kyrkmalmen Kas
Slide 81: Business Area Smelters
Business Area Smelters Svante Nilsson, President BA Smelters Boliden AB 81 2007-06-05
Slide 82: Main Zinc Smelter Competitors
Main Zinc Smelter Competitors slow growth in output in the coming years Boliden Kokkola Odda Umicore/Zinifex Budel Balen, Belgium Auby, France Xstrata Nordenham, Germany San Juan de Nieva, Spain Glencore Portovesme, Italy Boliden AB 82 2007-06-05
Slide 83: Primary Copper Smelter Competitors
Primary Copper Smelter Competitors Boliden Rönnskär Harjavalta NA Hamburg, Germany KGHM Lublin, Polen Atlantic Copper Cumerio Huelva, Spain Olen refinery, Belgium Pirdop, Bulgaria Boliden AB 83 2007-06-05
Slide 84: Rönnskär
Rönnskär • The world class smelter, Rönnskär, is situated in Skelleftehamn, northern Sweden • It focuses on sustainable production and maintains very high standards towards environmental requirements and resource-efficiency while treating and refining metals from concentrates and various recycled ma
Slide 85: Harjavalta
Harjavalta • Boliden Harjavalta comprises two plants - a copper smelter in Harjavalta and a copper refinery in Pori. They are both situated on the west coast of Finland • The flash smelting method, used and developed at Harjavalta, is efficient both Pori environmentally and economically • Boliden Ha
Slide 86: Kokkola
Kokkola • Boliden Kokkola is situated on the west coast of Finland • Production at the Kokkola zinc plant started in 1969 • After four expansions the Kokkola plant is one of the biggest, most automatized and most technically advanced zinc plants in the world Production 2006 Zinc 282 200 t No of empl
Slide 87: Odda
Odda • This sole Norwegian zinc plant is situated in the western part of the country • The company was founded in 1924, close to a hydro power plant • A modernisation (88 meuro) was carried out in 2004 and over the last years the environmental performance has been greatly improved Production 2006 No
Slide 88: Bergsöe
Bergsöe • The only secondary smelter for recycling lead acid batteries in Scandinavia • One of the cleanest smelters in Europe • Among the five largest secondary smelters in Europe • Holds 5% of the European market for secondary lead • Highly developed environmental standards No of employees 101 • L
Slide 89: E-waste is the faster growing segment of all municipal waste stream
E-waste is the faster growing segment of all municipal waste stream in developing countries WEEE generated by category in Europe Approx 9,5 M ton* • Each European Other Cameras, Watches, Sources of Light 2% Sport Equipment, produce in Electric Fittings Toys average 6% 1% between 17 and Fridges/Freez
Slide 90: BA-Smelters route to operational excellence
BA-Smelters route to operational excellence • Commissioning of decided investments • Expansion of secondary raw-materials “two new mines” • Debottle-necking projects • Bench-marking • Material balance • Process groups • Finnish synergy team Boliden AB 90 2007-06-05