Euromines AGM

1
COMPETITIVENESS IN MINING,SMELTING AND REFINING
EUROPE NEW BOLIDEN

• Euromines AGM
• Dublin May 18, 2004
• Tom Niemi
• Deputy CEO, New Boliden

2
Mining is local business
Svartliden gold mine Reserves 1.4 Mt Grade 5.7
g/t
Groundbreaking November 2003, courtesy Dragon
Mining.
3
Metal mines in Europe
Source Raw Materials Data, Stockholm 2004.
4
Table of contents

• European mining
• Competitiveness
• External Industrial climate
• Internal Effectivity
• Advantages of scale
• Consolidation
• New Boliden company overview
• Summary

5
Europe in global mining (excl. Russia)
Zinc mining
Zinc refining
Copper refining
Copper mining
Source Raw Materials Data, Stockholm 2004.
6
Copper mining in Europe
Source Raw Materials Data, Stockholm 2004.
7
Copper refining in Europe
Source Raw Materials Data, Stockholm 2004.
8
Zinc mining in Europe
Source Raw Materials Data, Stockholm 2004.
9
Zinc refining in Europe
Source Raw Materials Data, Stockholm 2004.
10
Zinc balance in Europe 2003 (excl. Russia)
New Boliden
Mine production Refined production Refined
consumption
kt
Source Raw Materials Data and ILZSG 2004.
11
Copper balance in Europe 2003 (excl. Russia)
New Boliden
Mine production Refined production Refined
consumption
kt
Source Raw Materials Data and Brook Hunt 2004.
12

• Competitiveness

13
European labour costs
SEK/h
Source Confederation of Swedish Enterprise, 2004.
14
Mergers Acquisitions1995 - 2003
Billion USD
Source Raw Materials Data, Stockholm 2004.
15
Metals miningCorporate concentration 1996 2003
of total world production
Copper Zinc Gold
Iron ore Bauxite
Source Raw Materials Data, Stockholm 2004.
16
Metals refiningCorporate concentration 1996
2003
of total world production
Copper Zinc
Aluminium
Source Raw Materials Data, Stockholm 2004.
17
Corporate concentrationvarious commodities
of total world production
Source Deutsche Bank and Raw Materials Data,
Stockholm 2004.
18
Industry consolidation Case European Stainless
Steel 1976 - 2002
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• Company overview

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AITIK Europes largest mine
Aitik copper mine, gt 25 Mt rock annually north of
the Polar Circle.
21
RÖNNSKÄR worlds largest electronic scrap
refiner
Female process operator at anode casting wheel.
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New Boliden in brief

• New Boliden is an international mining and
  smelting company which mines, smelts and refines
  zinc and copper. By-products include lead, gold
  and silver, among others. New Boliden operates in
  five countries - Sweden, Finland, Norway, Ireland
  and the Netherlands
•  
• New Bolidens operations are divided into two
  business areas Mining and Smelting
•  
• New Boliden is one if the worlds leading
  smelting companies in both copper and zinc the
  third largest in Europe in both metals - and it
  is the worlds fourth largest in zinc mining
•  
• New Boliden was created at the turn of the year
  2003/2004 through a merger of the mining and
  smelting operations of Boliden and Outokumpu
• Pro forma turnover for 2003 was SEK 14.5 billion

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The creation of new Boliden
New Boliden Domiciled in Sweden, listed in
Stockholm and Toronto
Outokumpu
Stainless Steel
Harjavalta, Pori Copper smelting refining
Boliden Mining Zinc and copper mining
Copper Products
Rönnskär Copper smelting
Kokkola, Odda Zinc smelting
Bergsöe Lead smelting
Tara Zinc mining
Fabrication
Fabrication
Outokumpu Technology
Contech
Contech
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Production entities
(Non-core)
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Key figures 2003
Net sales1)

• SEK 14.5bn

Breakdown of sales 2003
Capital employed
SEK 14.7bn
Net debt
SEK 7.5bn
Equity/assets
37.6
Employees
4,900

• Mines in Sweden, Canada and Ireland
• 5 smelters in Sweden, Finland and Norway

Main operations
Zinc 400,000 t/a Copper 100,000 t/a Lead
70,000 t/a Gold 6,000 kg/a Silver
300,000 kg/a
Mine output2)
Zinc 410,000 t/a Copper 400,000
t/a Lead 80,000 t/a Gold 17,000
kg/a Silver 500,000 kg/a
Smelter output
1) Pro forma sales 2) Metal content in the
concentrate
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• Summary

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Global exploration 2003
Sources Raw Materials Group and MEG 2004.
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Exploration inNordic countries
MEUR
Sources Geological surveys 2003.
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Exploration in Nordic countries
MUSD
Sources National statistics and MEG 2003.
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Mine project investments2003/2004
Source Raw Materials Data 2004.
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European mine projects
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• www.boliden.se
• www.boliden.com

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New Boliden

• New Boliden is a mining and smelting company
  focusing
• on the production of copper, zinc, lead, gold and
  silver

1) Boliden has signed a letter of intent whereby
the Company intends to sell Myra Falls.