E-scrap fundamentals

2012-11-22 1 Boliden CMD 2012

Capital Markets Day November 22nd 2012

Roger Sundqvist General Manager, Boliden Rönnskär

2012-11-22 2 Boliden CMD 2012

Total feed to Rönnskär

Normal year, including e-kaldo plant

Copper Concentrates ‒ 650,000 tonnes

Lead Concentrates ‒ 30,000 tonnes

Steelmill Dust (EAF) ‒ 20,000 tonnes

Copper/Zinc Residues ‒ 60,000 tonnes

E-materials (e-scrap+other) ‒ 120,000 tonnes

Copper Scrap ‒ 25,000 tonnes

2012-11-22 3 Boliden CMD 2012

2012-11-22 4

The value chain for electrical and electronic

waste

Collection of e-waste from industry and households

Inspection/Cleaning

Partition/Fragmentation

Separation

E-scrap

BOLIDEN

Aluminium

Iron

Plastic

Glass

Boliden CMD 2012

Electronic scrap potential

Electronic scrap treated

Land fill /stored

USA

Canada

EU25

Australia

China Japan

E-scrap smelting vs potential

2012-11-22 5 Boliden CMD 2012

Europe excl Scandinavia: 70% of volume Scandinavia: 20% “- North America: 5% “- Other: 5% “-

Sourcing Rönnskär

2012-11-22 6 Boliden CMD 2012

Main types of e-materials treated at Rönnskär

2012-11-22 7

E-scrap

10 – 30% copper 50 – 500 g/t gold 200 – 2,000 g/t silver Small amounts of palladium 10 – 30% plastic

E-granules

>30% copper 10 – 80 g/t gold 200 – 1,000 g/t silver Small amounts of palladium 1 – 10% plastic

Alloys

>60% copper 0 – 1,000 g/t gold 0 – 5% silver <1% plastic

Boliden CMD 2012

Method for price-setting

Similar to concentrate but terms not transparent for e-scrap

Contracts negotiated separately

Boliden’s revenue is based on TC/RC and free metals.

2012-11-22 8 Boliden CMD 2012

Total capacity of 120,000 tonnes of e-scrap

Lead kaldo plant ‒ E-scrap smelting since 1980 ‒ Operated in campaigns ‒ E-scrap smelting, black copper further

refined in main copper flow ‒ Lead smelting, crude lead further

refined in lead refinery

E-kaldo plant ‒ In operation since January 2012 ‒ Continuous e-scrap smelting ‒ Black copper further refined in main

copper flow

2012-11-22 9 Boliden CMD 2012

Expansion in short

Increased capacity for smelting of e-scrap to 120,000 tpa – an increase of 75,000 tonnes

1.3 bn SEK investment in equipment for unloading/sampling and an e-kaldo plant

Pay-back time <4 years

Project started Q2 2010 and e-Kaldo started production in January 2012

Increased production of gold, silver and copper

Best available technology

2012-11-22 10 Boliden CMD 2012

E-kaldo

Unloading/ sampling

2012-11-22 11

Sampling

Boliden CMD 2012

2012-11-22 12

E-scrap smelting using the Kaldo process

Boliden CMD 2012

Competitors

Europe ‒ Aurubis, Hamburg ‒ Aurubis, Lünen ‒ Umicore, Hoboken

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

Aurubis, Hamburg

Aurubis, Lünen

Boliden

Umicore, Hoboken

2012-11-22 13 Boliden CMD 2012

2012-11-22 14

More than 30 years of experience in e-scrap

smelting and recycling

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

E-scrap tpa

Target

Boliden CMD 2012

E-scrap processed at Rönnskär

Target

E-materials Feed, Total Rönnskär 2012

2012-11-22 15 Boliden CMD 2012

0

20

40

60

80

100

120

140

Q1 2012 Q2 2012 Q3 2012

Column1 ktonnes

Q3 = Higher feed of lead concentrates than Q2

Revisioner

2012 16

Under 2011 gjordes två revisioner en av dom I Indien.

Bilden visar en medarbetare från AVA Chemicals i Indien samtala med revisorn Camilla Ottosson. Till vänster i bilden syns den indiske tolken.

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