Stefan Romedahl, GM Boliden Tara Mines

1 Boliden Tara Mines

This is Boliden

Metal company with focus on sustainable development.

Core competence within Exploration, Mining, Smelting Metal recycling.

Produce and sell Copper, Zinc, Lead, Silver and Gold.

Five mining areas and five smelters.

2 Boliden Tara Mines

Safety and Environmental excellence are key focus areas within Boliden operations

LTI 9 (15) Medical Aid 68 (98)

First Aid 77 (71) Near Misses 45 (42)

Fires 7 (6), Smoke 4 (6)

Hazards 1701 (858) Inspections 744 (727)

Safety Actions 3856 (2550)

ISO accredited

3 Boliden Tara Mines

Delivering operational excellence

Operational excellence

Productivity - availability Metallurgy Project management

Focusing on profitable growth

Organic expansion

M&A

4 Boliden Tara Mines

Two large organic expansion projects conducted during the last decade

Aitik Copper Mine 36 Mtonne ore/year Head grade 0.2 % Investment decision 2006 Environmental licence January

2008 Construction time 2 years Commissioning March 2010 Total Capex 550 M Euro

Garpenberg Zinc Mine 2.5 Mtonne ore/year Head grade Zn 5 % By products Ag,Pb,Cu and Au Investment decision 2011 Construction time 2011-2014 Commissioning March 2014 Total Capex 350 M Euro

5 Boliden Tara Mines

World-class design

Fundamentals ‒ Geological target, conceptual

study ‒ Mineral resource, pre

feasibility ‒ Mineral reserve, feasibility

study

Mine ‒ Infrastructure – production

areas – stopes

Concentrator ‒ Mill ‒ Flotation ‒ Dewatering ‒ TMF

6 Boliden Tara Mines

High level of productivity but more to be achieved

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

0.00.51.01.52.02.53.03.54.04.55.0

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

7 Boliden Tara Mines

Increasing performance at mine and mill

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

8 Boliden Tara Mines

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 ‒ Real time updates improves visibility

WLan ‒ Enable status control and operational

guidance

9 Boliden Tara Mines

Boliden Tara Mines (Tara) today

Tara current realities Decreasing Resources & Reserves (R&R) Decreasing head grades High cost level

10 Boliden Tara Mines

Tara ore body value position Net grade (increased by by-products)

75

11 Boliden Tara Mines

Cash Cost (normal) Zn

Boliden Garpenberg Tara

12 Boliden Tara Mines

Two Focus Areas For Tara

• Cost reduction

• Near mine exploration and treatment of R&R

13 Boliden Tara Mines

Restructuring Tara for improved profitability

Lowering headcount 2013 700 2014 Q3 620 2015 590 Decrease mobile fleet

Optimization on-going

14 Boliden Tara Mines

Boliden Exploration in Ireland

Concentrate on near mine exploration proximate to Tara

Boliden ceased regional

exploration July 2014 Boliden open to joint

ventures on the regional exploration projects

15 Boliden Tara Mines

Irelands Zinc metal production

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

5%

0%

10%

20%

30%

40%

50%

60%

Share of World production

Share of European production

Ireland´s share of zinc mine production (metal in concentrate)

share of Europe Share of World

Source: Wood Mackenzie, Zinc market outlook Q4 2014

0

200

400

600

800

1000

1200

1400

1600

Kt metal in concentrate

Ireland´s share of zinc mine production (metal in concentrate)

Rest of Europe Irland

Source: Wood Mackenzie, Zinc market outlook Q4 2014

16 Boliden Tara Mines

Strength and Opportunities Exploration opportunities Great geological potential Strong initial support from authorities Infrastructure Generally good – (rail, road, ports and power grid)

Weakness and Threats Cost base High employment costs in the mining sector in general One of the highest energy cost countries in Europe Tax regime Corporate Tax rate in Ireland 12.5% BUT Mining 25% (plus Royalty payments) Regulation Long lead time to an operational mine – 8+ years dealing with regulatory authorities. Complex closure requirements – long monitoring period in closure (active-passive

rehabilitation – monitoring).

Challenges for Mining Industry in Ireland

17 Boliden Tara Mines