Mines update. Capital Markets Day November 23rd Jan Moström President, Boliden Mines

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1 Mines update Capital Markets Day November 23rd 2012 Jan Moström President, Boliden Mines Boliden CMD

2 Mines Summary EBIT 842 (1,047) MSEK 726 MSEK in Q Write-down in Tara, -79 MSEK Lower average prices End-of-period price effect positive Zinc grades lower in (Garpenberg) Easing cost pressure CAPEX 701 (505) MSEK 753 MSEK in Q Msek Quarterly EBIT Rolling 4Q EBIT Projects on plan 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Boliden CMD

3 Boliden Mines, status Aitik Aitik 36 Mton and further expansions Boliden Area Operations Commissioning of gold leaching and the Tellurium process Garpenberg Garpenberg expansion project including ramp up of mine production Tara Challenging cash cost position, comprehensive cost cutting program Boliden CMD

4 Boliden Mines, looking forward Exploration Near mine to develop sustainable ore expansions of operations Brownfield to deliver exploration project Technology Develop processes addressing deposits with a challenging mineralization Mine automation Environment Develop techniques to minimize environmental impact and develop optimal reclamation technology Boliden CMD

5 Boliden Mines Aitik 36 Recap and further expansions Boliden CMD

6 Aitik 36 Summary 1. CAPEX over budget 6,2 billions 2. On time Comissioning Q (Q1 2010) Production target (2014) 3. Capacity tested 34,8 Mt R4Q 2012 Q3 38 Mt/year Q Competitiveness CC1 50 percentile Boliden CMD

7 Crushers Boliden CMD

8 Production Not yet fully stable adjustments in Sep-Oct Mton/year Annual rate Boliden CMD

9 Competitiveness Cost to concentrate US$/tonne milled production Aitik Percentile of milled production 8,00 6,00 4,00 2,00 0,00 Head grade % Aitik Percentile of milled production Boliden CMD

10 Competitiveness 2012 Copper Mine, Normal, C1 Cash Cost Grouped By mine and Ranked By Cash Cost (C1) Aitik Source: Wood Mackenzie Ltd, Dataset 2012 Q1 Boliden CMD

11 Unit cost SEK/ton Aitik, operating cost excl. depreciation per milled ton - Quarterly 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 Kton ,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Milled production Kton Op cost exkl. dep per milled ton Kr/ton 0 Boliden CMD

12 Cost to concentrate BH data 2012 Index Copper primary mines Index year 2005=1 2,5 2 1,5 1 0, Source Brook Hunt Boliden CMD

13 Lessons learned Pre-projecting/strategic work Underground work Media, electricity and pipes Transfer of projects to operations Transfer of complicated contracts to operations New technology Challenging conditions Be the best, technical risks Boliden CMD

14 Aitik - Further expansions Boliden CMD

15 Resource Development Work Flow Model CONCEPTUAL STUDY PRE- FEASIBILITY STUDY FEASIBILITY STUDY Mineral Resource Mineral Reserve Project Plan Boliden CMD

16 Aitik Boliden CMD

17 Extended study Tailingspond NY BILD Boliden CMD

18 Compiling a single giant size geological model Resource Estimates: Aitik Aitik East Salmijärvi Liikavaara Conceptual Estimates: Aitik East pillar Office/T5 pillar Aitik field Aitik 45/65 Boliden CMD

19 Tentative Pushback Schedule for Aitik 45 Boliden CMD

20 Aitik head grades mine plan, Aitik 36 0,45% 0,40% 0,35% 0,30% 0,25% 0,20% 0,25% 0,15% 0,10% 0,05% 0,00% Ore grade old mine plan Ore grade current mine plan Average reserve grade Boliden CMD

21 To conclude Expansions Aitik after 45 Mton Laver Technology Exploration Environment Health & safety Boliden CMD

22 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. Boliden CMD