Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High...

22
Boliden Garpenberg High productivity and cost efficiency Hans Jönsson, General Manager Capital Markets Day 2014 11 November 2014 2014-11-11 1 CMD 2014 - Boliden Garpenberg

Transcript of Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High...

Page 1: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Boliden Garpenberg –

High productivity and

cost efficiency

Hans Jönsson, General Manager

Capital Markets Day 2014

11 November 2014

2014-11-11 1 CMD 2014 - Boliden Garpenberg

Page 2: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

High productivity and cost efficiency

Strong technology know-how

Integrated control system

Mobility and Wlan

Advanced maintenance system

Autogenous grinding

High degree of automation

‒Fully automatic process from

crushing to filtering of final product

AutoMine system

Optimising asset through mine design

Detailed long-term planning

2014-11-11 CMD 2014 - Boliden Garpenberg 2

Page 3: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Garpenberg – One of the world’s oldest and

most modern mine

Sweden’s oldest mining area in

operation

Deposits first mined in the 1200s

Acquired by Boliden in 1957

2014-11-11 3 CMD 2014 - Boliden Garpenberg

Milled ore, kton (1957-2014)

Page 4: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

From ore to metals 2013

2014-11-11 4 CMD 2014 - Boliden Garpenberg

Ore Mineral concentrates

Zn 5,2 %

Ag 150 g/t

Pb 2,1 % Zn 55%

1 495 000 t

127 000 t 36 000 t 3 000 t

Zinc: 70 000 t Lead: 25 000 t

Gold: 280 kg Copper: 520 t

Zinc conc. Lead conc. Copper conc.

Silver: 160 000 kg

166 000 t

Cu 18% Pb 70%

+Ag

+Au

+Ag

+Au

Mine Concentrator

Metals

Smelter

Page 5: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Garpenberg 2.5 expansion

From 1.4 to 2.5 mt of ore/year

Production start May

New industrial area

‒ New underground facilities

‒ New concentrator

‒ New infrastructure

Capex SEK 3.9 billion

Boliden’s 2nd largest investment

Reserves 36.3 (25.6) Mton

Resources 38.1 (44.5) Mton

2014-11-11 CMD 2014 - Boliden Garpenberg 5

Note: Reserves and resources: 2013-12-31 (2012-12-31). Resources excl. mineral reserves.

Page 6: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Underground

facilities

2014-11-11 CMD 2014 - Boliden Garpenberg 6

Production shaft

Ventilation shafts

Personnel shaft

Page 7: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

2014-11-11 CMD 2014 - Boliden Garpenberg 7

New industrial area

Page 8: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Inauguration of Garpenberg – 26 August 2014

2014-11-11 CMD 2014 - Boliden Garpenberg 8

Page 9: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

In-house project management key factor to

deliver on time and budget

2014-11-11 CMD 2014 - Boliden Garpenberg 9

Steering group

Project Manager

Underground Design

Tech

Commissioning

Site operation coordinator

Reference group

IT coordinator

CE-certification / Quality

Health & safety

Project coordinator

Purchasing

Finance

Time management

Concentrator Process

Design

Tech

Commissioning

Civil works Design

Tech

Power & controls Process

Design

Tech

Commissioning

Legal

Information

Page 10: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

10

High level of productivity

2014-11-11 CMD 2014 - Boliden Garpenberg 10

Citronen project (Grönland)

Pyhäsalmi (Finland) 777 (Kanada)

Doe Run (USA)

Aguas Tenidas (Spanien)

Tayahua Project (Mexiko)

Cerro Lindo (Peru)

Kazakhmys (Kazahstan)

Garpenberg

Bolidenområdet Tara

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0 1 2 3 4 5 6

tonne per man hour

Million tonne ore production per year

Zinc - underground mines 2016

Source: Wood Mackenzie

Page 11: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Integrated control system drives efficiency

One of the first mine with an integrated control system for mine and mill

Improved control

‒ General overview

‒ Sequence start and stop

‒ Mobile control room

‒ 130 HD cameras

Increased process efficiency

‒ Analysing production disturbances with alarm lists and event log

‒ On-stream analysis system, 24 different samples

Lower costs for maintenance

‒ Integrated with maintenance system

2014-11-11 11 CMD 2014 - Boliden Garpenberg

Page 12: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Mobile control room increases flexibility

2014-11-11 12 CMD 2014 - Boliden Garpenberg

Page 13: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Advanced maintenance system for high

availability

Monitors critical machines to

minimise breakdowns

‒ Online vibration measurements

Integrated with control system

‒ Improved surveillance

‒ Easier access to maintenance

system

‒ Easier to make a work order

‒ Easier to get access to drawings

and other documents

‒ Easier to make notice of error

‒ Diary improves visibility over time

2014-11-11 13 CMD 2014 - Boliden Garpenberg

Page 14: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

WLAN enables high degree of automation and

access of information

Implemented in vital parts of mine

Condition for autonomous loaders

Plans for status control and

operational guidance

2014-11-11 14 CMD 2014 - Boliden Garpenberg

Page 15: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Autogenous grinding – lower costs

Ore grinds itself

Lower costs

‒ No external grinding media added

‒ Less mill liner wear

Grinding technology in all Boliden

mines

2014-11-11 15 CMD 2014 - Boliden Garpenberg

Page 16: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Higher productivity through autonomous

loaders – AutoMine system

Loading and hauling the ore after

blasting

Controlled remotely via WLAN

‒ Operator can be in a control room

‒ Loading and unloading by remote

control by operator

‒ Transporting between loading and

unloading autonomous

Ability to operate during blasting

Improved safety

2014-11-11 16 CMD 2014 - Boliden Garpenberg

Page 17: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Mine design

Designing for life of mine

‒ Capex planning

‒ Production planning

Optimizing the NPV of the ore

body

Minimize lead time between work

processes at faces/stopes/

benches

Mining is a huge construction

project

2014-11-11 17 CMD 2014 - Boliden Garpenberg

Page 18: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

2014-11-11 CMD 2014 - Boliden Garpenberg 18

Page 19: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

2014-11-11 19

1200Z

0 Z

200Z

800Z

600Z

400Z

1400Z

Kyrkan-

Tyskgården

Finnhyttan

910 Z

870 Z

Gransjön

Kaspersbo

Strand

Lappberget

Potential

Dammsjön

Potential

1000Z

Gruvsjöschaktet Schakt

Garpenberg Garpenberg north

Kvarn-

berget

Kanal

New shafts and

Industrial area

Potential

Potential

Potential

Lappberget

Kyrkan-

Tyskgården

Dammsjön

Finnhyttan

Mined areas

Ore reserve

Mineral resources

CMD 2014 - Boliden Garpenberg

Page 20: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

High productivity and cost efficiency

Strong technology know-how

Integrated control system

Mobility and Wlan

Advanced maintenance system

Autogenous grinding

High degree of automation

‒Fully automatic process from

crushing to filtering of final product

AutoMine system

Optimising asset through mine design

Detailed long-term planning

2014-11-11 CMD 2014 - Boliden Garpenberg 20

Page 21: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Disclaimer

This presentation has been prepared by Boliden for information purposes only and as per the indicated date. Boliden does not undertake any obligation to correct or update the information or any statements made therein. Certain statements in this presentation are forward-looking and are subject to risks and uncertainties.

Nothing contained herein shall constitute any representation or warranty as to accuracy or completeness. Boliden has not made any independent verification of the information obtained from third parties.

Nothing in this material shall be construed as an offer or solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction.

Boliden does not accept any liability whatsoever arising from or in connection with the use of this information.

Save as by prior approval in writing, this material may not be copied, transmitted or disclosed, whether in print, electronic or any other format. All rights to the material are reserved.

2014-11-11 CMD 2014 - Boliden Garpenberg 21

Page 22: Boliden Garpenberg High productivity and cost efficiency · Boliden Garpenberg – High productivity and cost efficiency Hans Jönsson, General Manager ... CMD 2014 - Boliden Garpenberg

Capital Markets Day 90 years of knowledge

delivering today’s value