Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — AvestaPolarit Chrome Oy — Investor Day (May 2002)
25 slides from Outokumpu Oyj's investor day presentation, May 28, 2002
Slide 1: Capital Market Day, Kemi 28 May 2002
Capital Market Day, Kemi 28 May 2002 Presentation of AvestaPolarit Chrome Oy Harri Natunen
Slide 2: Tornio Works and Kemi Mine location map
SWEDEN FINLAND TORNIO HAPARANDA Tornio Works Kemi Mine Röyttä Reykjavík harbor KEMI N Kuopio Oslo Gulf of Bothnia Ajos Harbor 0 5 10 15 km
Slide 3: Process Flow AvestaPolarit Chrome Oy
Process Flow AvestaPolarit Chrome Oy AvestaPolarit Stainless Oy Kemi Mine Tubular Products Ferrochrome Ferrochrome Plant Nickel, scrap Slabs Steel Melting Shop Slabs Black Hot Coils Hot Rolling Mill White Hot Products Cold Rolling Plant Cold Rolled Products Other steel mills APP Tube mills End-users
Slide 4: Flow Sheet
Flow Sheet ORE MINING Products: CRUSHING KEMI MINE HEAVY MEDIA Upgraded lumpy SEPARATION chromite ore CONCENTRATION Chromite concentrate PELLETIZING AND SINTERING FERROCHROME WORKS PREHEATING SMELTING CO-Gas Slag - products CASTING, CRUSHING SIZING Ferrochrome
Slide 5: Strategic Objectives
AvestaPolarit Chrome Oy Strategic Objectives: Maximize shared value with coil products by providing cost competitive charge grade ferrochrome. Strategic Intent: Maximize integration to the melt shop in Tornio, and melt shops in Avesta and Sheffield. Be prepared to adapt ferrochrome production to mee
Slide 6: Kemi Mine
Kemi Mine
Slide 7: The Kemi Mine
The Kemi Mine Chrome deposit was found in 1959. A decision to exploit the deposit was made in 1964. Production was started in 1968. The total ore reserves are 60 Mt, and mineral resources 122 Mt Annual ore production is ~ 1.2 Mt. Change over to underground mining starts in 2003. Mining capacity up t
Slide 8: Mine Production / Production Plan 1995 - 2010
Mine Production / Production Plan 1995 - 2010 14 000 12 000 10 000 1 000 t 8 000 6 000 4 000 2 000 0 1995 1997 1999 2001 2003 2005 2007 2009 OP Ore UG Ore Barren Rock
Slide 9: Simplified Long Section
Simplified Long Section 277 275 300 3. Repair Shop 450 475 500 550 2. Drilling 600 1. Crushing Station
Slide 10: Production of Kemi Mine (1000 t)
AvestaPolarit Chrome Oy Production of Kemi Mine (1000 t) 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001 Plan2002 Lumpy Ore Fine Concentrate
Slide 11: FeCr Sintering and Smelting
SS = lee “Se Ga FeCr Sintering and Smelting ™ pvestoPotortt
Slide 12: —— ear ere anne nT
—— ear ere anne nT
Slide 13: Tornio Ferrochrome Works
Tornio Ferrochrome Works Production commenced in 1968. Ferrochrome plant expanded by second smelting furnace in 1985. New pelletising and sintering plant started in 1989. Present FeCr production capacity, 260.000 t/a, represents about 5 % of global production. Technology developed in-house (BAT in E
Slide 14: FeCr Sintering and Smelting Process
FeCr Sintering and Smelting Process
Slide 15: FeCr Market, Production, Sales
FeCr Market, Production, Sales
Slide 16: FeCr Price Development 1989 - 2002
FeCr Price Development 1989 - 2002 USc/lb 90 80 50-55% Cr, CRU Spot US imported Europe, 6-8 %-C 70 60 50 40 30 20 89 90 91 92 93 94 95 96 97 98 99 00 01 02 Data: CRU International
Slide 17: World Chromite Reserves, 3 600 Mt
World Chromite Reserves, 3 600 Mt Source: US Geological Services 1998 Finland India 1,1 % 0,7 % Others Kazakhstan 2,1 % 8,9 % Zimbabve 3,9 % South Africa 83,3 %
Slide 18: Top Five Producers Charge/HC FeCr 2001
Top Five Producers Charge/HC FeCr 2001, 3 790 kt Source: Heinz H Pariser Others 15,7 % India 7,0 % South Africa 49,8 % Finland 6,3 % Kazakhstan Zimbabve 13,9 % 7,3 %
Slide 19: HCFeCr: South Africa Now Accounts for Nearly 70% of Western World Production
HCFeCr: South Africa Now Accounts for Nearly 70% of Western World Production Production (‘000 tonnes) S. African Share (%) 3500 70 S. Africa Production 3000 65 Non S. A. Production S. African % Share 60 2500 55 2000 50 1500 45 1000 40 500 35 0 30 88 90 92 94 96 98 00 02 Sources: CRU
Slide 20: W.World HC FeCr consumption and production capacity
W.World HC FeCr consumption and production capacity 1000 x t-FeCr 6000 5000 4000 3000 2000 1000 0 92 93 94 95 96 97 98 99 ´00 ´01 ´02 ´03 ´04 ´05 ´06 USA Other w.w. Japan Europe Production capacity Data: CRU International
Slide 21: Ferrochrome Production (1000 t)
AvestaPolarit Chrome Oy Ferrochrome Production (1000 t) 300 275 260 261 256 250 236 237 237 232 231 225 200 175 150 125 100 1995 1996 1997 1998 1999 2000 2001 FC 2002
Slide 22: Full Time Employees
AvestaPolarit Chrome Oy Full Time Employees 350 300 250 122 123 121 127 123 124 124 127 200 150 100 162 167 167 169 169 168 174 173 50 0 1995 1996 1997 1998 1999 2000 2001 FC 2002 FeCr Plant Kemi Mine
Slide 23: Net Sales
AvestaPolarit Chrome Oy Net Sales MEUR 150 128 125 118 113 106 98 101 100 95 96 75 50 25 0 1995 1996 1997 1998 1999 2000 2001 Plan2002
Slide 24: AvestaPolarit Chrome Oy, Key Facts
AvestaPolarit Chrome Oy, Key Facts Today 260 000 t-FeCr/a 5 % of World production 75 % of AvestaPolarit consumption All production consumed in Tornio starting 2003 Plans for 540 000 t-FeCr/a Project time 3 years Electric power 30 % of costs Price development highly important Kioto pact BAT technolog
Slide 25: Capital Market Day, Kemi 28 May 2002
Capital Market Day, Kemi 28 May 2002 Presentation of AvestaPolarit Chrome Oy Harri Natunen