Pyhäjärvi Energy Storage in Mine Pyhäsalmi Mine - History, Present and Future Hilton Helsinki Airport, Vantaa, Finland 5 April 2018
Outline Pyhäsalmi Mine First Quantum Minerals Ltd Production History Personnel Safety Future of Operations Impact of Mine Closure 5.4.2018 Kimmo Luukkonen 2
Pyhäsalmi Mine Found in 1958 by a farmer Established by Outokumpu Headframe up in 1959 Production start-up in 1962 Outokumpu to quit mining in 2001 Acquired by Inmet Mining Corporation First Quantum Minerals Limited took over in 2013 5.4.2018 Kimmo Luukkonen 3
FQM Operating Mines Ç AY E L I L A S C R U C E S P Y H Ä S A L M I K E V I T S A G U E L B M O G H R E I N R AV E N S T H O R P E K A N S A N S H I S E N T I N E L 5.4.2018 Kimmo Luukkonen 4
Cobre Panamá P E B B L E First coal shipment in January Power plant first unit into operation in February Copper concentrate production to start in April 2019 Capex U$6 billion. 5.4.2018 Kimmo Luukkonen 5
Pyhäsalmi Mine Mine developed in four stages: Open pit crusher at 210L Underground Mine crusher at 400L Blind shaft crusher at 660L New Shaft from surface crusher at 1410L One of the most efficient non-caving u/g mines in the world. Access by shaft in less than 3 minutes or by 11km decline in 30 minutes rare asset. Both mine and mill have pioneered several advanced technologies developed together with domestic technology suppliers. 5.4.2018 Kimmo Luukkonen 6
Advanced Technologies 5.4.2018 Kimmo Luukkonen 7
1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 million tonnes per year Production History 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Open pit Underground Oxidized Kangasjärvi Ruostesuo D-pond Mullikkoräme 5.4.2018 Kimmo Luukkonen 8
Production to Date Ore milled 59.2 Mt Copper 490 kt Zinc 1 289 kt Pyrite concentrates 30.1 Mt Gold 10 t Silver 500 t D-pond 1.3 Mt 5.4.2018 Kimmo Luukkonen 9
Metal Prices, /kg 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Copper Zinc 5.4.2018 Kimmo Luukkonen 10
Supporting Owner s Growth Operating Earnings, euro million 120.0 100.0 80.0 60.0 40.0 20.0 0.0 Corporate taxes paid 2004-2017 in excess of 200 million 5.4.2018 Kimmo Luukkonen 11
1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 Safety Safety vastly improved in past 40 years. Year 2011 first full calendar year without a LTI. Longest period without a LTI 1,033 days Currently 336 days w/o LTI. 60 50 40 30 20 10 0 Lost-time Incidents 5.4.2018 Kimmo Luukkonen 12
Personnel Department Salaried Hourly paid Total Geology 2 2 4 Mine 11 59 70 Mill 10 58 68 Site Services 12 30 42 Administration 13 13 Safety, Health and 5 1 6 Environment Total 53 150 203 5.4.2018 Kimmo Luukkonen 13
Productivity in U/G Zinc Mines 5.4.2018 Kimmo Luukkonen Source: Wood Mackenzie 2017 Boliden s Capital Markets Day, Nov 21 2017 14
Future of Mine Operations Underground mining will end in September 2019. Pyrite supply contract to Yara Siilinjärvi has been extended till 2025. Pyrite will be reclaimed from B-pond. Mine closure will commence without a delay with dismantling and earthworks as planned. 5.4.2018 Kimmo Luukkonen 15
Impact of Mine Closure Employees Environment Community Future Survey Mine Closure Plan Economical and Employment Impact Assessment Security in Change Confirming Survey Results Career Paths and Needs Career Plans Roles Legal Requirements Best Practices Scheduling Dismantling and Earthworks Monitoring Reuse of Mine Site 5.4.2018 Kimmo Luukkonen 16
Employees Age Distribution 1.1.2018 Senior employees have a safety network 40 35 30 25 20 15 10 5 0 35 32 28 0 23 25 18 19 11 7 6* 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 Age * Current pension benefits 5.4.2018 Kimmo Luukkonen 17
Employees Length of Employment 70 Most employees recruited within past 15 years 60 50 40 30 20 10 Outokumpu employees 0 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40- Years 5.4.2018 Kimmo Luukkonen 18
Career Paths Continues in Mining 65 Moves to Another Sector 61 Retraining to New Profession 9 Entrepreneurs Retirement 24 27 0 10 20 30 40 50 60 70 Employees 5.4.2018 Kimmo Luukkonen 19
A- pond is already closed 5.4.2018 Kimmo Luukkonen 20
Impact on Employment Pyhäsalmi Mine s impact on employment is 1 150 jobs. In addition are corporate taxes paid. At mine closure will be 400 jobs lost in Town of Pyhäjärvi, 200 jobs lost in the province and another 200 jobs nationwide. Source: Kaivostoiminnan lopettamisen aluetaloudelliset vaikutukset - Pyhäsalmen kaivos Esa Storhammar - Jyväskylän yliopiston kauppakorkeakoulu 2014 - In Finnish 5.4.2018 Kimmo Luukkonen 21
w w w. c a l l i o. i n fo 5.4.2018 Kimmo Luukkonen 22
Pyhäjärvi Energy Storage in Mine Pyhäsalmi Mine - History, Present and Future Hilton Helsinki Airport, Vantaa, Finland 5 April 2018