Boliden Mine Automation

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1 Boliden Mine Automation FEM 2017 Levi Staffan Sandström Director of Technology Boliden Mines

2 Boliden produces metals for modern life Boliden is a leading metals company with a commitment to sustainable development The company s core competence is within the fields of exploration, mining, smelting and metals recycling Six mining areas and five smelters Balanced metal mix Zinc and copper Precious metals, lead, nickel as by-metals Revenues 40 BSEK Approx. 5,000 employees Boliden Mines - Mine Automation FEM

3 World Class Productivity Tonnes per man hour Zinc Underground mines Tonnes per man hour Copper Open pit mines* Garpenberg Aitik 2 Tara 20 Boliden Area 15 Kevitsa Million tonnes ore milled per year Million tonnes ore milled per year Source: Wood Mackenzie 2017, * Open pit and mines with mix open pit-underground Boliden Mines - Mine Automation FEM

4 Aitik Boliden Area Aitik Kylylahti Boliden Area Garpenberg Boliden Area Tara Garpenberg Tara Boliden Area Improved Cost Position Zn Cu Note: C1 cast cost, US Cents/lb. Pro Rata Boliden Area and Garpenberg. Normal costing Aitik, Kylylahti and Tara Source: Wood Mackenzie Q4 2016, cash cost for Kylylathi calculated by Boliden Boliden Group Boliden Mines - Mine Automation FEM

5 Boliden Mines - Growth philosophy Boliden Mines - Mine Automation FEM

6 BOLIDEN MINE AUTOMATION Boliden Mines - Mine Automation FEM

7 Mine Automation - The short story The main goals are to improve Mine safety Productivity and Utilization What s the problem? The face utilization UG 25% In open pit is utilization up to 80% Based on our benchmarking, we observe a global average overall equipment effectiveness (OEE) performance of 27 percent for underground mining, 39 percent for open-pit mining McKinsey, Metals and Mining, november 2015 Boliden Mines - Mine Automation FEM

8 Boliden Mines - Mine Automation FEM

9 Our partners are the key to success. When you look at our roadmap, never forget that it is our partners that are doing the bigger part of the investment. Boliden Mines - Mine Automation FEM

10 Technological Development and Automation History Today Future Handheld Mechanisation Automation Coordinated Automation In the Beginning Autonomous traffic Hammer & Sledge Handheld pneumatic hammer, sledge and dynamite Mechanisation Hydraulics Control systems Energy Automation LHD Long hole drills Communication Safety Regulation Coordination IoT Control centre Boliden Mines - Mine Automation FEM

11 Communication and Information network WLAN & Mobilaris & VoIP Kristineberg, Renström, Kankberg 2017/18 Tara WLAN & Mobilaris Garpenberg ( %) Garpenberg open stope coverage Strategical development Ericson High precision position 5G in Kankberg Boliden Mines - Mine Automation FEM

12 The Hardware -Main players Access points Switches WLAN Controllers WLAN Management systems WiFi antennas, (encapsulating access points) UPS system (Batteri backup min 4 hours operation) IP Telephony & Radio (also used as positioning tag for people) WLAN tag (used for positioning mobile machines) Boliden Mines - Mine Automation FEM

13 Autonomous Machines Underground Today Video remote LHD & Simba (Garpenberg Mine, Tara Mines) Near future Autonomous haul trucks underground Autonomous battery LHD with autonomous charging Video-remote controlled autonomous tunnel drills, bolters Continuous miners Future Autonomous combo drill & charge and scale & shotcrete units Short distance remote operated scalers & shotcrete units Boliden Mines - Mine Automation FEM

14 Autopilot Site to Plant (ASP) 8,3 km of transport whereof 3,1 km on public road 370 Boliden Mines - Mine Automation FEM

15 Autonomous Machines open Pit Today Test Autonuomous Pit Viper Near future Autonomous drilling in Aitik and Kevitsa Remote bench scaling and cleaning Autonomous stockpile loaders Autonomous haulage truck Boliden Mines - Mine Automation FEM

16 Trolley Truck Aitik Background Trolley truck is today the most promising technology to lower the diesel consumption in Aitik and Kevitsa open pit The lane will be 700 meters long and save 830 m 3 diesel per year. Future lanes will be more profitable. Investment 700 meter trolley lane DC substation 10 MW capability Conversion to trolley capabilities of four trucks Time table: Decision necessary October Commissioning summer 2018 Boliden Mines - Mine Automation FEM

17 Ventilation on demand - Kankberg Partnership with ABB and Mobilaris Launched April % reduced energy consumption Reduced CO2 corresponding to 50 cars Cost saving Boliden Mines - Mine Automation FEM

18 Boliden Mines - Mine Automation FEM

19 Next step. Digitalization - Sensors - Data management - Advanced analytics /learning in real time AI - Analytic centers Digitalization of value chain - Mine to Smelter Process development - process control/aa/ai Energy - fossil free production - electrification Battery tech Boliden Mines - Mine Automation FEM

20 Thank you! Boliden Mines - Mine Automation FEM

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