TECHNOLOGY ADVANCEMENTS AT KITTILÄ MINE
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1 TECHNOLOGY ADVANCEMENTS AT KITTILÄ MINE André van Wageningen
2 Kittilä (Finland) Pinos Altos and Creston Mascota (Mexico) LaRonde (Canada) La India (Mexico) Meadowbank (Canada) Goldex (Canada) Lapa (Canada) Canadian Malartic (50 %)
3 1986 First gold finding by the Geological Survey of Finland 1998 Exploration started by Swedish Riddarhyttan Recourses AB 2010 Stable production 2012 Open pit mining ended, solely underground mining 2002 Environmental permit for mining 2014 Completion of the new mine office building 2003 Mining license 2014 Completion of the mill expansion project 2005 Agnico Eagle Mines Limited became a sole owner of Riddarhyttan 2006 Completion of the final feasibility study, decision to build the mine 2008 Ore production started in May, milling in September 2009 The first gold pour in January; the Grand Opening in June AGNICO EAGLE KITTILÄ 3
4 Aerial view of the Kittilä mine site AGNICO EAGLE KITTILÄ 4
5 PERSONNEL AEF Contactors Total Geology Mine Department Mill Maintenance Administration AEF Management 16 Senior staff 63 Staff 71 Workers 272 Projects Exploration AEF management Total As per December 31, 2015 AGNICO EAGLE KITTILÄ 5
6 TREND CONTINUES UNTIL WHICH DEPTH? As December 31, 2015 Au (g/t) Tonnage (000 s t) Au(000 s oz) Proven/probable reserves ,195 4,353 Indicated resources ,925 1,549 Inferred resources ,833 1,764 AGNICO EAGLE KITTILÄ 6
7 MINED TUNNELS AGNICO EAGLE KITTILÄ 7
8 AGNICO EAGLE KITTILÄ 8
9 Underground development Ruiskubetonointi Pulttaus/verkotus AGNICO EAGLE KITTILÄ 9
10 Underground production Cable bolting Blasting Raise boring Drilling Loading & hauling Charging Back filling AGNICO EAGLE KITTILÄ 10
11 ELECTRONIC TAGGING BOARD RFID based tagging Mine divided in zones Rescue chambers also have an RFID reader AGNICO EAGLE KITTILÄ 11
12 VENTILATION ON DEMAND TYPICAL LEVEL Motion detector Vehicle identification CO monitor Flow meter AGNICO EAGLE KITTILÄ 12
13 VENTILATION ON DEMAND ABB 800xA control system Primary and secondary fans can be controlled through control system Elimenated the need for 1 additional ventilation raise Large electrical savings AGNICO EAGLE KITTILÄ 13
14 HEAT RECOVERY Heat recovery from oxygen plants to heat mine air intake Reduced the need for LPG by >90% Heat recovery from scrubber is heating mine air intake and buildings Basically no fossil fuels needed for mine ventilation AGNICO EAGLE KITTILÄ 14
15 DESWIK IMPLEMENTATION PAST SUCCESS Auditable plans (LOM, Budget) Oz cut from reserves when first time done using Deswik Distance based cut-off -> Oz cut from reserves Mineable Shape Optimizer improved stope design -> Oz added to reserves Plans can be output in Hyperion format More time spend reviewing and optimizing than producing one single plan AGNICO EAGLE KITTILÄ 15
16 SHORT TERM SHIFT PLANNING DESWIK.OPS Project with Deswik to develop a short term planning tool LOM 18 Month Monthly Shift Data stored in central database AGNICO EAGLE KITTILÄ 16
17 UNDERGROUND FLEET MANAGEMENT ABB MINEINSIGHT Pilot project with recording data straight from the equipment Possible to collect certain data automatically via CAN bus Better transparency of the operation More accurate statistics (utilization, etc) -> optimization potential Surface mines fleet management has shown great savings, why not underground? AGNICO EAGLE KITTILÄ 17
18 AUTOMATION LEVELS OF AUTOMATION Manual operation Single function automated Combined function automation Tele-remote operation Fully automated Decision support (planning & scheduling) Automation (production) AGNICO EAGLE KITTILÄ 18
19 CONTROL ROOM AGNICO EAGLE KITTILÄ 19
20 SANDVIK AUTOMINE LITE AGNICO EAGLE KITTILÄ 20
21 ATLAS COPCO DRILL RIG AUTOMATION Full fan automation Drill plans straight from the office to the drill rig AGNICO EAGLE KITTILÄ 21
22 Shaft project Basic engineering finished Earthworks finished 2 phases 1000m 1600m AGNICO EAGLE KITTILÄ 22
23 IDEAS Ore sorting Electrical trucks Ore passes with chutes Proximity detection Mobilars / Ascom position based decision making AGNICO EAGLE KITTILÄ 23
24 CONNECTION TO OTHER SYSTEMS EXPERT SYSTEMS THAT NEED TO TALK TO EACH OTHER Sandvik Atlas Copco Deswik ABB Vtrin ABB 800xA ABB MineInsight Scania FMS Hyperion JDE RFID Safety System AGNICO EAGLE KITTILÄ 24
25 Trading Symbol: AEM on TSX & NYSE Investor Relations: agnicoeagle.com
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