Aitik presentation at CMD 2019 Hans Jnsson, General Manager Welcome - PowerPoint PPT Presentation

Aitik presentation at CMD 2019 Hans Jönsson, General Manager

Welcome to Aitik – Agenda March 14, 2019 08.15 Hans Jönsson, General Manager Boliden Aitik 09.00 Pause and change of clothes 09.30 Guided tour (2 groups) 11.30 Pause and change of clothes 12.00 Lunch including final Q& A session with Group Management 13.15 Departure Aitik mine 14.30 Departure Gällivare Airport 16.00 Arrival Arlanda Airport Boliden CMD 2019 2 2019-03-14

Safety Production is important, but your health and your life are more important! Boliden CMD 2019 3 2019-03-14

Brief history of Aitik 1932 The Aitik deposit discovered 1968 Production starts, 2 Mtonnes throughput 1973 6 Mtonnes, 1983: 11 Mtonnes, 1992: 18 Mtonnes 2010 ~6 BSEK investment, 36 Mtonnes 2018 860 MSEK, new surface crusher Aitik ore profile 2020 45 Mtonnes 4 Boliden CMD 2019 Boliden CMD 2019 4 2019-03-14

Production overview at Aitik Boliden CMD 2019 5 2019-03-14

Aitik from above 7,000 ha Boliden CMD 2019 6 2019-03-14

Europe’s largest and the world’s most productive open pit copper mine Copper mine productivity 2018 Open pit mines with concentrator  Easily accessible ore 35  Favourable stripping ratio 1:1 30  Large scale operations Aitik  Efficient logistics Milled ore tonnes/manhour 25 Committed and competent employees  20 High level of automation, advanced technology  15 10 5 0 0 20 40 60 80 100 120 140 Million tonnes of ore milled Source: Wood Mackenzie Boliden CMD 2019 7 2019-03-14

Aitik – Increased productivity Remote controlled/autonomous drill rigs Truck trolley New Aitik electric trolley New Haul trucks Mineral reserves have increased 80% since  2008 despite the fact that yearly throughput has increased 100%.  Electric test lane ~700 meters and is expected to save 830 m3 diesel per year. New trucks enable automation and cost  reductions. New Komatsu 830E-5 intended for Kevitsa and Komatsu 930E-5 intended for Aitik Boliden CMD 2019 8 2019-03-14

Aitik – EBIT and throughput since 2009 Aitik - Milled production (Ktonnes) Aitik- EBIT (MSEK) 50 000 3 000 2 500 40 000 2 000 30 000 1 500 20 000 1 000 10 000 500 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Boliden CMD 2019 9 2019-03-14

Aitik Opex/ tonne since 2009 Aitik - Operating costs (excl. depr.), SEK/milled tonne 70 60 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Boliden CMD 2019 10 2019-03-14

Aitik – Pushback scenarios 11 Boliden CMD 2019 Boliden CMD 2019 11 2019-03-14

Aitik - New crusher station (KiD2)* KiD2 production from start 2 500 2 000 1 500 Ktonnes 1 000 500 0 Apr May Jun Jul Aug Sep Oct Nov Dec *KiD2 = Surface crusher 2 Boliden CMD 2019 12 2019-03-14

Aitik - Pebbles crushing  Pebbles crushing will be installed in connection to the two autogenous mills  Will increase capacity when low grindability  Commissioning during Q2 2019 Boliden CMD 2019 13 2019-03-14

Liikavaara Short facts  “Low-grade” Cu-Au mineralisation, approx. 3 km east of Aitik  Discovered by Boliden in 1930´s  Conceptual study in 2009-10, approx. 40 Mtonnes at 0.28% Cu  Included in Aitik LoMP, 2023-30 Status  Feasibility 2018 indicate 58 Mtonnes at 0.26% Cu ‒ Satellite to Aitik pit ‒ Hauling ore and acid forming waste rock to Aitik ‒ Processing in Aitik  Application for mining concession filed at mining inspectorate  Application for environmental permit filed at environmental NE SW court Risks  Permits Boliden CMD 2019 14 2019-03-14

Nautanen Short facts Cu-Au mineralisation, approx. 15 km NW of Aitik   Discovered by Boliden in 2011 ”High grade” (1.5% Cu) known from ca 200 m to 600 m below  surface, still open  Mineral Resource ‒ Indicated: 8.2 Mtonnes at 1.7% Cu, 0.9 g/tonnes Au, 5 g/tonnes Ag ‒ Inferred: 7.5 Mtonnes at 1.5% Cu, 0.6 g/tonnes Au, 7 g/tonnes Ag  Conceptual study in 2014 Status  Pre-feasibility 2015-2019 on-going ‒ Underground mine, open stoping ‒ Transport to Aitik and processing in Aitik ‒ Application for mining concession ‒ Water treatment ‒ More drilling Risks  Permits Boliden CMD 2019 15 2019-03-14

Aitik from an EHS perspective Aitik mine - Emissions of copper per year 5000 4000 Kg/year 3000 2000 1000 0 1979 1984 1989 1994 1999 2004 2009 2014 Prioritised areas of work • Safety culture • Water management and dam safety • Reducing emissions to water and air • Energy savings • Decommissioning and reclamation of land • Reducing waste and spillage Boliden CMD 2019 16 2019-03-14

At Boliden, safety is number one  Keep your phone/camera in your pocket or bag until photo opportunity is announced  Ongoing production, pay attention Heavy traffic  Listen to and follow the instructions given to you   We are all equally responsible for the safety of ourselves and each other Boliden CMD 2019 17 2019-03-14

Disclaimer  This presentation has been prepared by Boliden for information purposes only and as per the indicated date. Boliden does not undertake any obligation to correct or update the information or any statements made therein. Certain statements in this presentation are forward-looking and are subject to risks and uncertainties. Nothing contained herein shall constitute any representation or warranty as to accuracy or completeness. Boliden has not made  any independent verification of the information obtained from third parties.  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.  Boliden does not accept any liability whatsoever arising from or in connection with the use of this information.  Save as by prior approval in writing, this material may not be copied, transmitted or disclosed, whether in print, electronic or any other format. All rights to the material are reserved. Boliden CMD 2019 18 2019-03-14