A Swedish and Polish Contribution to EU Raw Materials Initiative

Transcription

1 A Swedish and Polish Contribution to EU Raw Materials Initiative Brussels November 27, 2012 Lennart Evrell, President & CEO Boliden Boliden Group - DB BRICS

2 Raw Material Initiative Europe Flagships Initiatives out of 7 raw material strategy synergies An industrial policy for the globalisation era An agenda for new skills and jobs Resource Efficient Europe Innovation Union Unit/Operation choose tab Insert/Header & Footer

3 Resource Efficient Europe Increasing pressure on natural resources The need to be more efficient both for ECONOMIC and ENVIRONMENTAL reasons From exploitation to recycling Major discussion on the indicators to be used

4 Sweden Svemin agenda Infrastructure Competence R&D Time for permitting Growth vision for the Swedish mining industry Sulphur in marine fuel

5 Infrastructure Unacceptable effects of indirect ETS cost Germany Large ETS revenues Compensation to the industry for indirect higher electricity costs Sweden Small ETS revenues Compensation to the industry for indirect higher electricity costs? Norway No ETS revenues Compensation to the industry for indirect higher electricity costs France UK Industry signs log term contracts at cost of production Funds allocated in support package to the industry Source: PwC/Boliden analysis?? 5 Boliden CMD

6 Base metals market Boliden Group - DB BRICS

7 Copper demand and GDP Cu demand kg/capita China: USA, Japan, W Europe: Japan in W Europe in 2000 USA in 1966 USA in Brook Hunt A Wood McKenzie company, Boliden Research 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 GDP per capita US$ real (PPP) China USA Japan W Europe Boliden Group - DB BRICS

8 Population in various growth phases urbanization continues to be main driver (USD/capita) Stagnation > 20,000 $ 16% Less than 5,000 $ 44% 15,000-20,000 $ 6% 5,000-15,000 $ 34% * USD, purchasing Power Parity adjusted Source: IMF, Boliden calculations Boliden Group - DB BRICS

9 Revisioner Under 2011 gjordes två revisioner en av dom I Indien. Boliden Metals for modern life Bilden visar en medarbetare från AVA Chemicals i Indien samtala med revisorn Camilla Ottosson. Till vänster i bilden syns den indiske tolken

10 Boliden fundamentals Zinc, Copper, Gold, Silver, Lead Mining and Smelting Global leader in e-recycling Revenues MEUR EBIT 500 MEUR CAPEX 500 MEUR Boliden Group - DB BRICS

11 Competitive positions Copper, Q2-12 Zinc, Q2-12 Aitik Boliden area Garpenberg Tara Boliden Group - DB BRICS

12 Expansion projects Boliden Group - DB BRICS

13 Project pipe-line Potential Aitik Expansion Cu-Au Rönnskär E-scrap Au, Ag, Cu Kankberg Au, Te Kokkola Zinc smelter Ag recovery Garpenberg Expansion Zn, Ag, Pb Aitik further expansion Cu-Au Laver New deposit Cu-Au Boliden Group - DB BRICS

14 Aitik expansion Copper-gold EUR 750 million investment Mine production to 36 mton per year Biggest mine in Sweden New concentrator plan and doubled mine capacity Lowest grades Highest productivity in world Boliden Group

15 Kankberg a new gold mine Gold and Tellurium Investment - Mine infrastructure - Leaching plant Production start 2012 Boliden Group

16 Garpenberg expansion Zinc and Silver EUR 450 million investment Start 2014 Enhanced competitive position Cost reduction 25% Boliden Group

17 Expansion of e-scrap recycling Urban Mining Re-using materials already extracted No landfill Profitable EU sourcing Boliden CMD

18 E-scrap recycling in EU Legislation drives e-scrap volumes WEEE*-directive Target 4 kg per person and year 2% New WEEE-directive 2016 Target 13 kg per person and year 11% 6% 9% EU electronics purchases 24 kg per person and year 32% 20% 19% Boliden 18 05/12/2012

19 E-scrap recycling and potential Canada USA EU25 China Japan Australia Electronic scrap potential Electronic scrap treated Land fill /stored Boliden CMD

20 Boliden CMD

21 The value chain for electrical and electronic waste Collection of e-waste from industry and households Plastic Glass Inspection/Cleaning Partition/Fragmentation Separation E-scrap Aluminium Iron BOLIDEN Boliden CMD

22 Electronic recycling expansion at Rönnskär 30 years of e-recycling experience EUR 150 million investment 120,000 million ton per year Biggest e-recycling facility in the world Increases in metal production: Copper +14,500 ton/y Silver +32 ton/y Gold +2 ton/y Boliden Group

23 Electronics scrap to Rönnskär Europe excl Scandinavia: 70% of volume Scandinavia: 20% - North America: 5% - Other: 5% - Boliden CMD

24 Competitors Europe Aurubis Umicore Rest of the world Xstrata, Canada Dowa, Japan Naoshima, Japan LS Nikko, South Korea Biggest competitors Exports to China and Africa Waste deposit instead of recycling Boliden Aurubis, Hamburg Umicore, Hoboken Aurubis, Lünen Boliden CMD

25 Boliden started with exploration...

26 and developed many of the technologies still in use Geophysical equipment development 1918 Equipotential method 1923 Two-frame method 1936 Boliden gravimeter 1945 Slingram (HLEM) 3600Hz 1950 Airborne EM - and magnetic survey 1950 Worden gravimeter 1969 Hetona Downhole 3-comp MAG 1970 VLF-E E-field 30 khz local transmitter 1970 IP Induced polarisation 1980 BHEM Downhole 3-comp EM 1980 TEM Transient-EM 1980 Airborne MEM 1980 Downhole Radar 1984 MAG Magnetic method 1986 EM3 Ground-EM 3-comp 1986 BHIP Downhole-IP 1990 Scintrex Gravimeter CG Ground Penetrating Radar 1992 BHMAG Downhole 3-comp MAG 1995 EM3 Ground-EM 3-comp with GPS 1995 Downhole 3-comp MAG on drillrod 1996 Downhole 3-comp EM on drillrod 1998 GEM Magnetometers GSM Downhole 3-comp EM/MAG on drillrod 2002 EM3-4 frequencies GPS-synchronized 2003 IP GPS-synchronized ground system frequency downhole 3-comp EM 2004 MAG Ground magnetic instrument (GPS) 2009 Scintrex Gravimeter CG Portable IP-transmitter (GPS) 26 Boliden Group-CMD

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28 2012 Boliden EM34

29 ProMine project Vinnova-Promine

30 Laver the latest discovery Laver Drilling since 2009 Mineral Resource 690 Mt Nov 2012 Old Laver mine N Lill-Laver 1 km Boliden Group - DB BRICS

31 Corporate Responsibility

32 Sustainable development Social responsibility Developing personnel Diversity even gender New Boliden Way Safe work environment Environmental responsibility Minimising emissions to air and water Limiting the impact on the environment Waste responsibly Reclamation Economic responsibility Effect on local community Boliden Group

33 Sustainable development 2011 Boliden Group

34 Sustainable development 2011 Boliden Group

35 Evaluation of business partners UN Global Compact, ILO Core conventions, ISO standards for the environment and work environment Self-assessments and audits include: Human Rights Working conditions Environmental work Anti-corruption Boliden Group

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37 Revisioner Under 2011 gjordes två revisioner en av dom I Indien. Metals for modern life Bilden visar en medarbetare från AVA Chemicals i Indien samtala med revisorn Camilla Ottosson. Till vänster i bilden syns den indiske tolken.