Delivering operational

excellence

Jan Moström, President Boliden Mines

Capital Markets Day 2014

10 November 2014

2014-11-10 42 CMD 2014

Delivering operational excellence

Operational excellence

Productivity - availability

Metallurgy

Tara transformation

Project management

Focusing on profitable growth

Organic expansion

2014-11-10 CMD 2014 43

M&A

Environmental excellence is a key focus

Water treatment

‒ Fenton

‒ Biological process for nitrogen

removal

Reclamation

‒ Tailings facilities

‒ Waste rock

‒ Sites

TMF, Operational performance

2014-11-10 44 CMD 2014

Acid mine water – oxidation of Pyrite

2014-11-10 CMD 2014 45

Pyrite -

Sulfide ore

5

High level of productivity but more to be

achieved

2014-11-10 CMD 2014 46

Citronen project (Grönland)

Pyhäsalmi (Finland)

777 (Kanada)

Doe Run (USA)

Aguas Tenidas (Spanien) Tayahua Project

(Mexiko) Cerro Lindo

(Peru) Kazakhmys (Kazahstan)

Garpenberg

Boliden-området Tara

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0 1 2 3 4 5 6

tonne per man hour

Million tonne ore production per year

Zinc - underground mines 2016

Mineral Park (USA)

Gibraltar (Kanada) Mount Milligan

(Kanada) Boddington (Australien) Butte (USA)

Highland Valley (Kanada) Sierrita (USA)

Bingham Canyon (USA)

Antamina (Peru)

Cerro Verde (Peru) Los Pelambres (Chile)

Collahuasi (Chile) Escondida (Chile)

Aitik

0

5

10

15

20

25

30

35

0 20 40 60 80 100

tonne per man hour

Million tonne ore production per year

Copper - open pit with mill 2014

Aitik – no 1 productivity

2014-11-10

Open pit Cu mines Percentile **

Head grade % Cu 99

Mine t ore/hour 1

Mill t ore/hour 0

G&A t ore/hour 0

Overall t ore/hour 0

Wage rate $/hour 87

Labour cost $/t 12

Cash cost, Normal C1* - All

mines

c/lb Cu 42

* Cash cost Normal C1, Wood Mackenzie Q3 2014 estimate for 2014

** All mines in Woodmackenzie model, Q2 2014 estimates for 2014

CMD 2014 47

World-class design

Fundamentals

‒ Geological target, conceptual study

‒ Mineral resource, pre feasibility

‒ Mineral reserve, feasibility study

Mine

‒ Interaction infrastructure – production

areas – stopes

Concentrator

‒ Mill

‒ Flotation

‒ Dewatering

‒ TMF

2014-11-10 48 CMD 2014

Increasing performance at mine and mill

2014-11-10 CMD 2014 49

Key productivity drivers at mine Minimizing lead time between work

processes at faces/stopes/benches

Key drivers for the concentrator Optimizing availability of

mill/flotation/dewatering and

metallurgical performance

Integrated control system drives efficiency

Integrated control system for mine and mill

‒ Increased efficiency

‒ Lower costs

Mobile control room

‒ Enables operators to monitor and adjust in

real time

Control system integrated with

maintenance system

‒ Only one original document

‒ All share same info

‒ Improved surveillance

‒ Easier to spot errors

‒ Diary improves visibility over time

WLan

‒ Enable status control and operational

guidance

2014-11-10 50 CMD 2014

Wlan Enable status control and operational guidance

2014-11-10 CMD 2014 51

2014-11-10 CMD 2014 52

Leading expertise in handling complex ore

90 years of mining complex ore

Complex deposits with increasing

grades of penalty elements

Case: Kankberg Kylylahti

Cu, Au, Zn, Ni, Co

Patented process with high recoveries Kankberg – leaching of gold and tellurium from goldtellurides

2014-11-10 53 CMD 2014

Conceptual study initiated 2008

‒ Conventional leaching plant, method not an option

‒ A hot leaching process developed

‒ Boliden patent

‒ Gold recovery 85% (without 45%)

‒ Tellurium leaching process developed

‒ Tellurium recovery 65%

New process commissioned 2011

Restructuring Tara for improved profitability

2014-11-10 54 CMD 2014

Lowering headcount

2013 700

2014 Q3 620

2015 590

Decrease mobile fleet

Optimization on-going

Future growth based on solid project pipeline

2014-11-10 55

Au

Cu

Zn

Aitik

45

Projects may loop, may be rejected

or may be executed due to

market conditions and project conditions

Laver

Future options Conceptual study Pre feasibility study feasibility study execution

Garpenberg

2,5

CMD 2014

In-house project management a success factor

General design by in-house resources

Project management all disciplines with in-house personnel

Suppliers used in parts of the project but no large turn-key assignments

Standardized process - Project manual with continuous improvements from

previous projects A36. BoRe, Garpen, A45.

Key individuals assures continuity and experience sharing

Conceptual

Study

Pre-

feasibility

Study

Feasibility

study Implementation

2014-11-10 CMD 2014 56

Garpenberg – Set for 2.5 Mtonnes

2014-11-10 CMD 2014 57

Aitik45

45 (38) mton annually, +20%

Reserve grade 0.22 (0.24)

‒ Reserves 1 085 (633) mtonnes

‒ Life of mine 2040 (2030) years

‒ Copper life of mine 2 348 (1 471) ktonnes

Capex

‒ New crushers with improved reliability

‒ Lower stripping, approx. 0.5

‒ TMF

-10% costs per ton of ore

‒ Economies of scales

New environmental permit

‒ In all, in according to our application

2014-11-10 58 CMD 2014

2014-11-10 59

Sa2

Ö

Managing pushbacks to optimize financial

performance

CMD 2014

Adjusted mine plan Aitik

New environmental permit fall 2014

45 Mton 2017

Production 2015, 40 Mton

Life of mine Cu grade unchanged 0.22%

Cu grade 2015 and 2016 0.21%

2017-2019 over average grade

2014-11-10 60 CMD 2014

Increased production with new crusher Improved reliability – proven design

2014-11-10 61 CMD 2014

Existing with

reinforcements

New

Further growth options

Kylylahti

‒ Near mine

‒ Depth

‒ Satelites

‒ Outokumpu Field

Laver

‒ Application for mine concession

Q3 2014

‒ Next step, pre feasibility

2014-11-10 62 CMD 2014

Laver

Bergslagen

Skellefte field

Outokumpu field

2014-11-10 63 CMD 2014

Exploration, an unique opportunity

”Malmfälten”

Kylylahti – near mine exploration

64 CMD 2014 2014-11-10

Outokumpu Area – Copper and Nickel Deposits

Kylylahti

Keretti Hautalampi

Vuonos

Perttilahti

Luikonlahti

Riihilahti

Saramäki

Kokka

65 CMD 2014 2014-11-10

Delivering operational excellence

Operational excellence

Productivity - availability

Metallurgy

Tara transformation

Project management

Focusing on profitable growth

Organic expansion

2014-11-10 CMD 2014 66

M&A

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.

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2014-11-10 CMD 2014

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