LNS A Mining and Tunnel Contractor for Challenging Project in the Arctic

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LNS A Mining and Tunnel Contractor for Challenging Project in the Arctic Presentation by Frode Nilsen CEO LNS Professor II, UiT - The Arctic University of Norway

LNS-Konsernet

What is LNS competitive advantage? LNS is a mining owner, tunnel contractor and mining contractor. We combine the best from the mining industry and tunnel industry LNS philosophy is based on long-terms projects and never looking for short-term profit LNS has a lot of experience from projects where the logistic has been very challenging! LNS is using few workers on each shift, teamwork, multiskilled, cooperation, flat organization of work efficient! The Norwegian Tunnel Methode LNS has unique competence from a lot of projects for the mining industry and civil works from the polar area We prefer tough wintercondition!

Cooperation with mining companies LKAB 35 years Outokompo 16 years Nikkel og Olivin 13 years North Cape Minerals 1 year Sydvaranger 4 years Store Norske 11 years Elkem 15 years Franzefoss 13 years Skaland Graphite 13 years Rana Gruber 9 years

Svalbard Global Seed Vault

Map, Svea Nord

Project challenges - geographical location at 78 N latitude - logistics - geology - project progress - excavation of tunnel close to coal layer

LNS Chile

LNS Hong Kong

Svalsat and Trollstasjonen

Bharati, Larsemanns Hill, Antarktis Indian Scientific Organization: National Center for Antarctic & Ocean Research

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et selskap i LNS-gruppen Ny gruve i Trælen 2007 New mine, Trælen, approximately 12 km from Skaland At the moment the production of consentrate is around 10000 ton per year. Can be increased a heavely. Average carbon in situ 25-40 %. Worldclass! Production for 30 years, most probably 75 years! Fra diamantboring i 2001

Rana Gruber AS LNS has been the owner of Rana Gruver since 2008 Producer of Hematite and Mangetite concentrates Underground- and open pit mining Iron content in raw ore 30-33 % Since 2008 the production has increased 400 % and the number of workers 30-40 %! The production will increase 100 % from todays level during the next 7 8 year

Rana Gruber, important changes Important decission for increasing the production: Changing from Open Stop to Sublevel caving The excavation of drifts was outsourced to LNS Rana Gruber is still executing long-hole drilling

Rana Gruber, mining methods Open Stop vs Sublevel Caving Mining method between year 1998-2010 late 2010-

Kvannevann underground mine part of Rana Gruber

Changes done by LNS at start of excavation of drifts: New equipment; computer operated jumbo, rock bolt rig, shotcrete rig, charging rig etc. Facing the project as a tunnel project, not mining operations. Decreased numbers workers per shift Other methods for rock support, more use of shotcrete earlier access to faces Using specilized tunnel workers multiskilled Using emulation explosives Bonussystem for tunnel workers paid per meter tunnel, rock support and HSE

Excavation of drifts, Rana Gruber Before 2008: Typical performance from 50 to 65 m/week (1 jumbo) After outsourcing the exavation of drifts to LNS: Typical performance from 110 to 175 m/week (1 jumbo) Under special good rock condition it has been possible to achieve 200 m/week!

Produksjonsutvikling 16 % vekst pr. år +29% 1 880 000 12.3% 15.8% 1 451 000 10.8% 1 292 000 23.4% 1 116 000 11.8% 995 000 15.4% 806 000 721 000 610 000 0% 1 453 000 Sligproduksjon 2007 2008 2009 2010 2011 2012 2013 2014 2015

Changes in Rana Gruber because of low prices for iron ore In 2012 the prices for iron ore was up to 185 USD/t, in 2016 the prices for iron ore has been down to 37 USD/t The workforce has been decreased with 100 people in 2015 The production of iron ore increased with 29 % in 2015 The production of iron ore increased with 65 % for each employees Rana Gruber is one of the most effecient mining company in the world!

LNS Greenland Greenland Mining Service (LNS Greenland): LNS LNS Spitsbergen Rana Gruber Greenland Venture 2 166 086 km². 410 449 km² er isfritt. Befolkningen 57 600. Selvstyret ble utvidet fra og med 21. juni 2009. 3,5 milliarder danske kroner fra Danmark pr år.

Aappaluttoq Mine, ruby mine Current 9-Year Pit (Pink area in opposite image) Non-compliant Geological Structures in Red

Greenland Ruby mine

Greenland Ruby mine

Greenland Ruby mine

Greenland Ruby mine From the testproduction this winter

LNS from POLE to POLE from WEST til EAST Probably the world s most geographical widespread contractor!

Thank you for kind attention!