Post on 01-May-2018
Boliden Smelter Strategy
Kerstin KonradssonPresident Boliden Smelters
A supplier to the European metals industry
Concentrates from own and external mines
Zinc metal sold to steelworks for rust-proofing
(galvanising)
Copper metal sold to wire rod and copper rod
manufacturers
Lead sold to car battery manufacturers
Gold and silver sold to industrial producers and as
investment object
Other by-products
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Smelters income model
Payable by-
metals
Mine
share
Free metal main
and by-metal
Treatment and
Refining charge
Metal premium
By products
Betalbara
bi-metaller
Smelter
share
Metal
value
LMEPayable main
metal
2017-09-29Boliden Smelters3
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
The most cost efficient will survive…
Cost structure
‒ Automation
‒ Energy consumption
Production stability
‒ Maintenance
‒ Process control
Economy of scale
‒ De-bottlenecking
‒ Expansions
2017-09-294
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
…and/or the ones with the highest revenues
Technology development
‒ Impurity capability
‒ Extract valuables
‒ By-products
‒ Waste management
2017-09-295
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
To be the most sustainable metal producerEconomically, environmentally and socially
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Cu PGM Ni
Zn
Ag
Au
Pb
Bi
Sb
Cu
Zn Pb
NiNickel
PbLead
ZnZinc
CuCopper
Secondary material
Products
Waste
Concentrates
Cu
Au
Rönnskär & HarjavaltaAu, Ag, Se, Te, Ni, PGM,
OPM, H2SO4, SO2
Kokkola & OddaAg, Pb, Cu, Cd, H2SO4
HarjavaltaCu, PGM, Co, H2SO4, SO2
Bergsöe & RönnskärPrimary: Au, Ag, Sb, Bi
Secondary: Sb, Sn
Strategy
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Strategic directionMaximise the value from raw materials,
production and sales with focus on sustainable
waste solutions
Focus areas Operational efficiency
Competence development
Productification
Considerable capex invested in the strategy
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
0%
5%
10%
15%
20%
25%
30%
35%
0
500
1 000
1 500
2 000
2 500
3 000
3 500
0912 1012 1112 1212 1312 1412 1512 1612
MS
EK
EBIT ex PIR ROCE ex PIR
Capex, R12 EBIT ex PIR & ROCE, R12
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
0912 1012 1112 1212 1312 1412 1512 1612
MS
EK
CAPEX
Automatisation
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Safety in Odda Quality in Kokkola
World leader in Recycling
” Two million
mobile phones
per day”
56 ton copper
6,5 ton gold
152 ton silver
50 kton zinc
” Four million car
batteries per year”
46 kton lead
2017-09-29Boliden Smelters10
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Separation of plastics in Bergsöe
80 MSEK
In operation Q1 2018
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Odda expanded to 200 kton zinc
350 MNOK
New capacity May 2017
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
New Sulphur Acid plant in Harjavalta
90 MEUR
‒ Phase 1: Contact converter, 2018
‒ Phase 2: Gas cleaning, 2019
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Unique underground storage in Rönnskär
650 MSEK
In operation 2019
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
High availability and low emissions in Kokkola
4,9 MEUR
In operation May 2017
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE
Summary
Strong vision & strategy
Challenges
‒ License to operate
‒ Cost position
‒ Capex intense
Possibilites
‒ Technology development
‒ Automation
‒ Support from a network of partners
BOLIDEN SUPPLIER SUMMIT 2017
NEXT LEVEL METALS AND MINING –COLLABORATE AND INNOVATE