Garpenberg. Capital Markets Day 6 September Tom Söderman Mine Manager, Garpenberg

Transcription

1 Garpenberg Capital Markets Day 6 September 2011 Tom Söderman Mine Manager, Garpenberg

2 History of Garpenberg Funk dynasty Stockenström dynasty Cornelius dynasty 1957 Boliden Mineral AB KingErik XIV 16xx-1635 King Gustav II Adolf 16xx-18xx Garpenbergs kopparverk Garpenbergs bruk AB AB Gruvgården AB Zinkgruvor (Ryllshyttan) 1989 Autogenous grinding plant 2007 Pastefill plant 1354 King Magnus Eriksson issues mining privileges Gudsberga monastery controls mining King Gustav Wasa xx KingKarl IX Avesta- Garpenbergs bruk AB xxxx Ryllshytte gruf AB New shaft, head frame, mill 1972 Garpenberg N in production 1998 Discovery of Lappberget Flotation expansion Hedningagruvorna Medieval mine chapel 1485 Gudsberga monastery <1600 Present mine chapel 1785 Garpenberg church 1801 Garpenbergs Herrgård 1908 Ryllshyttan concentrator 1917 Zinc roaster, Odalfälten 1928 Gruvgården shaft, mill 1994 Gruvsjön shaft 2003 First ore from Lappberget ~800 First C-14 evidence of mining 14xx Lime quarry in Garpenberg Castegården 1555 Gustav Wasa kungsgård ~1750 First mills at Rafshyttan and Hesshyttan 1907 Copper concentrator / smelter, Odalfälten 1915 Forestry school to Garpenberg 1997 Forestry school ceases 2004 N and S mines connected 2

3 History of Garpenberg 1908 Ryllshyttan concentrator 1928 Gruvgården shaft, mill New shaft, head frame, mill 1972 Garpenberg N in production 1994 Gruvsjön shaft 2007 Pastefill plant 3

4 Garpenberg milled ore tonnes Total ore production for period: 34,571 kton

5 Garpenberg grades ,00 20,00 40,00 60,00 80,00 100,00 120,00 140,00 160,00 180,00 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8, Gr/ton % Lead Zinc Silver/RHS

6 Garpenberg key figures Msek Distribution of payable metal *) Revenues 1,311 1,710 1,163 1,490 1,902 EBIT ,124 Milled ore, kton 1,182 1,255 1,365 1,394 1,443 Lead 19% Gold 2% Copper 1% Metal production*) kton Zink 60,992 71,464 83,938 90,079 86,022 Lead 21,099 25,139 28,514 31,371 29,310 Copper Silver, kg 108, , , , ,138 Silver 28% Zinc 50% Gold, kg *) Basis average metal prices in 2010: Zink 2,159, lead 2,148 and copper 7,539 USD/ton Silver 20,19 and gold 1,227 USD/oz *) Metal in concentrate production has exceeded average head grades in ore reserve. 6

7 Boliden in Garpenberg 310 own employees Appr 100 employed by contractors Turnover > 1000 MSEK Hedemora Community s largest private employer 7

8 Safety always first on the agenda! 8

9 LTI

10 Garpenberg from ore to metals Mine Ore Concentrator Mineral concentrates t t Sphalerite Galena Chalcopyrite Zn 6,5 % Ag 125 g/t Pb 2,5 % t t t Zn 54 % Pb 71% Cu 20% +Ag +Au +Ag +Au Zinc: t Silver: kg Lead: t Smelter Metals Gold: 230 kg Copper: 420 t 10

11 Tailings pond - Ryllshyttan 11

12 Dammsjö min. 300Z Garpenberg North 850Z Lappberget Tyskgården?? East limb Kvarnberget? Dammsjön Finnhyttan Garpenberg Mill Kanal Orebody Strand Orebody Workshop Head office 12

13 Garpenberg area 13

14 Garpenberg before Lappberget Garpenberg Garpenberg norra 0 Z 200Z Dammsjön 400Z 600Z Tyskgården Kaspersbo Gransjön 800Z Kanal Strand 1000 Z 1200Z 1400Z 1600 Y 2000 Y 2400 Y 2800 Y 3200 Y 3600 Y 4000 Y 4400Y 4800 Y 5200 Y Orereserv Mineralresources Potential Mined-out 14

15 Garpenberg 1/ Garpenberg Garpenberg norra 0 Z 200Z Dammsjön Lappberget 400Z 600Z Finnhyttan Kyrkan- Tyskgården Gransjön 800Z Kanal Strand Kvarnberget Kvarnberget Kaspersbo 1000 Z 1200Z 1400Z 1600 Y 2000 Y 2400 Y 2800 Y 3200 Y 3600 Y 4000 Y 4400Y 4800 Y 5200 Y Orereserv Mineralresources Potential Mined-out 15

16 kton Garpenberg Ore reserve Mineral resource (measured/indicated) Mineral resource (inf erred) Ore production*10 16

17 Expansion Garpenberg 17

18 Technology and production New industrial area New underground facilities New concentrator New infrastructure Capacity increase from 1.4 to 2.5 millions tonnes of ore/year Production ramp-up from 2 million tonnes/year 2014 to full production at the end of 2015 Average grades in ore reserve Zinc 5.4 % Lead 2.5 % Silver 142 g/tonne Production until 2030 Good geological potential 18

19 Overview Garpenberg mining area Existing Industrial area 500 m New shafts and Industrial area 19

20 Garpenberg Gruvsjöschaktet Dammsjön New shafts and Industrial area Garpenberg north Schakt 0 Z 200Z Potential Dammsjön Lappberget Lappberget 400Z 600Z Kyrkan- Kyrkan- Tyskgården Finnhyttan Finnhyttan Strand Potential Kaspersbo 910 Z 870 Z Gransjön 800Z 1000Z Potential Kanal 1200Z Mined areas Ore reserve Potential Kvarnberget Potential 1400Z Mineral resources 20

21 New shafts and underground facilities 21

22 Crushers at -705 and meter levels 22

23 Crushing and loading station at -1100/1150 meter level 23

24 Financials Capex SEK 3,9 billion Capex per year, MSEK Profitable investment with robust financials Productivity increases from high levels Improved competitive position Production cost per tonne of ore decreases by approx. 25 percent 24