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Sustainability Report 2005

Boliden AB, P.O. Box 44, SE-101 20 Stockholm, Sweden Visiting address Klarabergsviadukten 90 Tel +46 8 610 15 00, Fax +46 8 31 55 45 www.boliden.com 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 3

Contents

The President’s Statement 4

This is Boliden 6

Organisation and Management 10

People 14

Environment 18

Society 30 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 4

4 THE PRESIDENT’S STATEMENT

The Power of example

This is the first Sustainability Report to lating the information in a Sustainability WHAT SORT OF A CONTRIBUTION be published by Boliden and it contains Report we will promote experience ex- CAN BOLIDEN MAKE? information on and the results of our changes within the Group. We are often the biggest private employ- work with the environment, health, er and, sometimes, the biggest single safety, quality, human resources and WHAT DOES SUSTAINABILITY employer in the communities where social commitment. Here is some of MEAN TO US? we operate, so our effect on individual the questions and comments on our It means constantly striving to achieve a communities can be very significant. Be- thoughts about the Report and the con- long-term balance between what is tween five and seven job opportunities cept of sustainability that we have asked acceptable in a purely commercial sense, are created in each location for every ourselves during the process. socially, and in terms of the degree of single Boliden employee, so obviously we our environmental impact. must focus on issues that are important WHY HAS BOLIDEN PUBLISHED A to the survival of our surroundings and SUSTAINABILITY REPORT? AS A MINING AND METALS thereby ourselves. We have two main reasons. Firstly, the COMPANY, CAN WE REALLY BE Boliden also has the advantage of Group is constantly engaged in efficiency CREDIBLE WHEN WE TALK ABOUT operating in a stable region. Furthermore, enhancement and development work on SUSTAINABILITY? we have chosen to invest in and conduct issues concerning human resources, Yes, we can. We use the planet’s re- our processes using the latest technology safety, and the environment. Collecting sources, just like any other company, but and one of the benefits of this is that it and presenting our strategies, goals, the difference is that we come first in the improves our environmental performance. results and experiences in a single docu- value chain, so our operations are very We might be a small player in some con- ment like this is invaluable, because it concrete. Mining ore and refining metals texts, and our investments and program- shows our stakeholders what Boliden is the way Boliden does is visible, audible mes in the field of environmental tech- and where we stand on these issues. and tangible – that’s inescapable. nology for example, are marginal in terms Secondly, at the end of 2003/beginn- The mining and metals industry is of the improvements they bring about in ing of 2004, we created a new company often criticised, mainly from an environ- the global environment. But for us, they through the structural deal with Outo- mental viewpoint. Much of the criticism offer concrete competitive advantages, kumpu. As a result, Boliden both is historically rooted and would benefit and so establish a belief in setting a good doubled in size and virtually doubled its from a review, but some of the criticism example. number of employees. We’re right in the is, unfortunately, still justified. Metals middle of implementing Boliden’s stra- are vital to every person and every Stockholm, April 2006 tegic platform, The New Boliden Way, society nowadays. The challenge we face, which illustrates our corporate culture, as an individual company and as part of our shared values, and our methodology. the industry as a whole, of course, is to Sustainability work is an important part run our operations in the best possible Jan Johansson of this strategy, and we hope that by col- way. President and CEO 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 5

THE PRESIDENT’S STATEMENT 5 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 6

6 THIS IS BOLIDEN

This is Boliden

OPERATIONS The company has approximately 4,500 and at Tara in Ireland. The company Boliden is a mining and smelting com- employees in Sweden, Finland, Norway, has two zinc smelters, one at Kokkola, pany that mainly produces copper, zinc Ireland and the Netherlands. The head Finland and one at Odda, Norway. The and lead, but also gold and silver. The office is in Stockholm. two copper smelters are at Harjavalta, operations concentrate on the early pro- The operations are conducted through Finland and at Rönnskär, Sweden. cessing stages in the value chain, i.e. on three Business Areas: Mines, Copper Boliden also has a lead smelter, exploration, mining, and on smelting. Smelters, and Zinc Smelters. Financial Bergsöe at Landskrona, Sweden. Metal recycling – an area in which results are reported for the Product Boliden is one of the world leaders – Segments Copper and Zinc. BUSINESS CONCEPT also comprises a growing part of the Boliden’s mines are at Aitik, the Boliden’s business concept is to extract business. Boliden Area and Garpenberg in Sweden, minerals and produce high-quality

The value chain

EXPLORATION aims to discover mineral MINING involves mining ores out of the CONCENTRATION is the first stage in the resources and securing ore reserves for future bedrock to extract metals. Mining takes place extraction of metals from ore, and it involves production. The exploration process entails in both underground mines, at relatively large processes such as crushing, milling and flota- mapping ore bodies, drilling and sampling. depths, and in open-pit mines. Mining inclu- tion, and sometimes, leaching. The product Detailed analyses and evaluations are per- des sub-processes such as drilling, blasting, is metal concentrate. Most of these products formed from financial, social and environ- loading and transportation of the ore for pro- are sent to Boliden’s own smelters, but some mental viewpoints before a decision is taken cessing. are sold directly from the mines to external to start drilling ore in a specific area. Local Boliden operates six underground mines customers. The residue left after concentration residents, authorities and other stakeholders and two open-pit mines. The company also is called tailings. It is used to back-fill mined are involved in the process. operates one external underground mine. out stopes in underground mines or deposited Boliden has increased its investments in In addition to zinc and copper, Boliden also in tailings ponds in the vicinity of the mines. exploration in recent years, and invested SEK produces lead, gold and silver concentrate 149 million in 2005. The focus is on mine- – metals often found together in zinc and site exploration, because the infrastructure is copper ores. already in place and the time from discovery to production can be reduced. 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 7

THIS IS BOLIDEN 7

FINANCIAL KEY RATIOS, SEK million 2005 2004 Net sales 20 441 17 928 Operating result (EBIT) 3 069 1 831 Result after financial items 2 812 1 365 Net result 2 046 1 220 Earnings per share, SEK 7.07 4.98 Cash flow from operating activities 2 540 1 552 Equity/assets ratio, % 44.9 45.2 Net debt/equity ratio, % 54 71 Return on capital employed, % 19.6 11.9 Salaries and other remuneration 1 724 1 589 Social security expenses 649 598 Investments 1 337 1 536 Provision for reclamation costs 527 363

metals in a cost-effective and environ- Toronto Stock Exchange in Canada. 17.7 per cent and 11.8 per cent of mentally friendly way, and to exploit On 28th February 2006, Boliden had ownership, respectively. At the end of the commercial opportunities that the 80,755 shareholders, the biggest of 2005, Boliden’s market capitalisation was market offers, thereby creating value for which were SEB Fonder (3.74 per cent), SEK 18.8 billion. For further informa- shareholders, customers and employees. AFA Försäkring (3.57 per cent) and tion on the Boliden share, please see Odin fonder (2.74 per cent). Boliden’s Annual Report for 2005 and OWNERS Foreign ownership accounted for Boliden’s website at www.boliden.com Boliden is a limited company whose approximately 50 per cent of the share share is listed on “Attract-40” on the O capital. Among the highest percentage of list of the Stockholm Stock Exchange, the foreign registered owners, most are and which has a secondary listing on the located in the UK and the USA with

SMELTING AND REFINING The bulk of the RECYCLING Metals are among the few sub- RECLAMATION is an ongoing process at our metal concentrates produced by Boliden’s stances that can be recycled, in principle, mines and tailings ponds. The same applies mines is transported to Boliden’s own smel- almost indefinitely. In addition to the recycl- to both ongoing and closed down operations. ters, where it is processed. Boliden’s smelters ing that is continuously taking place as part of Boliden’s goal is to achieve a balance be- have introduced competitive processes, such the smelters’ internal processes, Boliden is also tween its rehabilitation of disturbed areas and as the flash smelting method for copper and involved in commercial recycling at the smel- the use of new land. direct leaching for zinc, one of the benefits ters at Rönnskär (copper, electronic waste and Nowadays, reclamation plans are incorp- being that they reduced both energy con- zinc ashes), Harjavalta (copper) and Bergsöe orated in the planning stage of new opera- sumption and emissions. The main products (lead and tin). tions. We work closely with universities, are pure metals in the form of copper catho- Boliden’s recycling processes are environ- research institutions, other companies and des and zinc ingots. By-products include gold, mentally friendly, which offers competitive authorities to achieve optimum solutions silver, lead, sulphuric acid, sulphur dioxide advantages. in every individual case. and aluminium fluoride. 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 8

8 THIS IS BOLIDEN

Boliden has production units in Sweden, Finland, Norway and Ireland

Aitik Rönnskär Copper mine Copper smelter

The Boliden Area Kokkola Zinc mines Zinc smelter

Odda Harjavalta/Pori Zinc smelter Copper smelter

Tara Head Office Zinc mine Stockholm

Garpenberg Bergsöe Zinc mine Lead smelter

Smelter

Mine

Head Office

GOALS STRATEGY terms of volume. Boliden is also the Boliden’s overall goal is to become To achieve its goals, Boliden works with European market leader in the rapidly Europe’s leading copper and zinc pro- the following strategies: growing metal recycling industry. Our ducer. Boliden also aims to: • Ongoing operational efficiency goal is to become Europe’s leading • be one of the world’s most cost- enhancement producer in terms of both quality and effective producers • Development of exploration quantity. • achieve a return on capital employed • Improvement of the balance in the that exceeds 10 per cent over a business material flows between mining and METALS, CUSTOMERS AND cycle smelting operations SUPPLIERS • achieve a net debt/equity ratio of • Organic growth Copper approximately 40 per cent and • Becoming industry’s partner of choice Copper is an excellent heat and elec- • to pay a dividend that corresponds to • Consolidation tricity conductor and is consequently around one third of the company’s net used in electric power distribution result over a business cycle. MARKET POSITION systems, electrical equipment and heat Boliden is the third largest producer of exchangers. Of all copper produced at copper cathodes and the second largest Boliden, totalling approximately producer of zinc metal in Europe, in 350,000 tonnes, approximately 25 per

COPPER1) ZINC1) End-users Western world Western world

of the principal Construction industry 37 % Construction industry 51 % Electrical/electronics ind. 26 % Transport 24 % metals Industrial machinery 15 % Industrial machinery 6 % Transport 11 % Consumer products 10 % Consumer products 11 % Other 9 % 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 9

THIS IS BOLIDEN 9

The origins of Boliden’s The origins of Boliden’s BOLIDEN’S MARKET copper concentrate zinc concentrate POSITIONS Sweden 28% Ireland 31% European market share Chile 18% Sweden 29% – Copper Mines Portugal 16% USA 14% Peru 12% Finland 9% Boliden 10% Indonesia 8% Peru 7% Finland 5% Canada 4% Argentina 4% Turkey 3% Turkey 3% Mexico 1% Canada 3% Other 2% Brazil 3%

cent come from concentrates from our remainder is bought from mines, mostly own mines. Boliden buys approximately in the USA, Finland and Peru. European market share – Copper Smelters 75 per cent of all copper concentrate from external suppliers, mostly from Lead Boliden 18% South America and Europe. Lead and lead alloys are chiefly used to Boliden’s main customers for copper produce lead batteries. Lead alloys are also cathodes from the Rönnskär and used in the construction and electronics Harjavalta smelters are European manu- industries and in medical applications. facturers of semi-finished goods, such as Boliden’s largest lead customers include Elektrokoppar and Outokumpu Copper. Enersys and Johnsson Control Inter- End customers are primarily cable, national. industrial and electronics companies. Gold European market share Zinc The primary applications of gold are in – Zinc Mines The main applications of zinc are in cor- the manufacture of precious objects, Boliden 39% rosion protection for steel and, in com- jewellery, electrical contacts and con- bination with copper, in the manufacture nectors in the telecommunications and of brass. Boliden’s principal market for electronics industries. Boliden’s main the zinc metal produced at the Kokkola customers include Heraeus Metall- and Odda smelters are part of the north- handelsgesellschaft mbH and Sempsa ern European steel industry, and include Joyeria Plateriá s.a. companies such as Arcelor, Corus, Rautaruukki and SSAB. The end Silver customers (the customer’s customers) Silver is primarily used in the manu- mainly come from the construction and facture of jewellery, but is also used in European market share – Zinc Smelters automobile industries. the manufacture of photographic film, Approximately 80 per cent of the raw electrical conductors and advanced Boliden 18% material that makes up Boliden’s total electrical equipment. Thessco Ltd and zinc production of approximately Umicore AG & Co. KG are amongst 430,000 tonnes is covered by con- Boliden’s largest silver customers. centrate from our own mines. The

LEAD1) GOLD2) SILVER2) Western world Hole world Hole world

Batteries 76 % Jewellery 87 % Jewellery/silverware 32 % Pigments/chemical products 8 % Electronics 7 % Photographic products 22 % Rolled/extruded products 7 % Dental products 3 % Electrical/electronics industry 20 % Alloys 3 % Collectibles 3 % Alloys 5 % Protective cable sheathing 2 % Other 21 % Other 4 %

1) Source: Brook Hunt 2) Source: CRU 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 10

10 ORGANISATION AND MANAGEMENT

Organisation and Management

The New Boliden Way

Operational CORPORATE GOVERNANCE policy Boliden operations are governed by the Corporate guidelines Shareholder’s Meeting, the Board of and targets Directors and the President, in compli-

ence with the provisions of the com- Local management systems pany’s Listing Agreement with the Stockholms Stock Exchange and the company’s Articles of Association. Local routines and methods Boliden has implemented the Swedish Code of Corporate Governance since 1st July 2005. For more detailed informa- responsible for the development and meets 2–3 times a year. Wider-ranging tion on the way the company is govern- implementation of the Group’s strategy, networks of Human Resources Managers ed, please see Boliden’s Annual Report and meets regularly every month to have been set up in Sweden and Finland. for 2005 and the company’s website at review the operations. www.boliden.com Boliden’s philosophy is to have mini- MANAGEMENT STRUCTURE mal central administration and to delegate A shared approach and methodology are ORGANISATION management to the operational level vital if Boliden’s decentralised, network- The President, who is also the CEO, instead, wherever possible. based methodology is to work properly. manages the Group within the frame- Environment, Health, Safety and During 2005, 85 per cent of all em- work stipulated by the Board of Direc- Quality (EHSQ) work and Human Re- ployees have familiarised themselves with tors and is responsible for the ongoing source issues are both run in network Boliden’s overall strategy document, governance and control of the opera- form. The New Boliden Way (TNBW) and its tions. The Group management includes A new organisation was established for associated Code of Conduct. Work on the Deputy CEO, the Presidents of the EHSQ work in 2005 with the aim of TNBW began in early 2005 and it is the Group’s three Business Areas, Mines, clarifying operational responsibility and result of several internal working parties’ Copper Smelters and Zinc Smelters, and enabling Boliden’s various units to make efforts to define Boliden’s values and the Senior Vice Presidents of the Group better use of each other’s experience. collect them in a single document. Staff for Finance, Communications, The Vice President of EHSQ and the The Code of Conduct is intended to Legal Affairs and Human Resources Senior Vice President for Human Re- support and guide employees in their respectively. The Group management is sources report to the Deputy CEO who daily work and covers the following areas: therefore has overall responsibility for • Responsibility for company assets – Boliden’s sustainability issues. A total of We shall adhere to legislation and other four people are linked to the EHSQ regulations in force in the markets in staff, and they then work with a network which the company operates. of approximately 60 EHSQ managers We shall co-operate in developing throughout the organisation. The entire healthy business routines and making EHSQ network meets once a year and sound risk assessments within our ope- the individual networks meet twice rations. yearly. The Group’s human resources • Responsibility for fellow colleagues – network comprises seven people and We adhere to the UN Declaration of 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 11

ORGANISATION AND MANAGEMENT 11

Boliden’s overall goals for its EHSQ

OPERATIONAL POLICY work are: • Implement Group-wide Environment The vision of new Boliden is to be a world-leading, focused and cost-effective Health, and Safety work guidelines mining and smelting company. The core values of the company are passion, before the end of 2006 responsibility and commitment. Total Quality Management is applied to all opera- tional areas including environmental matters and occupational health and safety. • Draw up Group-wide quality manage- The principles of the operational policy are: ment guidelines in 2006 – We acknowledge our responsibility for economic and social development as well as environmental impacts by promoting sustainable development and • Perform internal audits every second efficient use of natural resources. year at every unit

– We promote the health and working ability of our employees as well as safe • Ensure that all units have certified working environment. We strive to maintain a good and stimulating working climate and further develop our amployees’ expertise. management systems for Environment, Health and Safety by the end of 2008 – We strive to exceed our customers’ expectations. Customer satisfaction uoriginates from the quality of our products and services. • Introduce energy management

– We appreciate the excellence of our partners and expect them to act systems at all units by the end of according to our principles. By maintaining the dialogue with our partners we 2008 identify mutual opportunities and continuously improve our performance.

Overview of the introduction of various management systems at Boliden’s units 2005 Boliden Zinc Boliden Aitik Garpenberg Tara Rönnskär Bergsöe Harjavalta Kokkola Odda Commercial B.V.

ISO 9001 CCCCCC ISO 14001 •• • • • CCCC OHSAS 18001 •• • • • CCC ISRS C Dam safety X X X X X X • Safety report (Seveso) X X X X X X X Energy management system •• • • • XX• •=initiated X=implemented C=certified

Human Rights and to the ILO’s core vironmental, health, safety and energy by the EHSQ staff. Every audit results in conventions. aspects among other things. Boliden a report in which deviations from policy • Responsibility for the environment – focuses on Total Quality Management as well as areas in which there is scope for We shall constantly strive to minimise (TQM) and the Group wide guidelines improvement are identified. A timetable our impact on the environment and to for quality work that will be introduced for implementing the requisite measures use natural resources wisely. in 2006 are among the first steps in this is then drawn up and the EHSQ staff are • Responsibility for sales and marketing – process. responsible for ensuring that these action All activities designed to support our plans are implemented. In 2005, audits business operations shall be in keeping INTERNAL AUDITS were performed at the Bergsöe lead smel- with what is generally regarded as good The company has developed a system of ter, the Odda zinc smelter, and the Aitik taste and shall be subjected to careful internal audits in 2005 for its work with and Garpenberg mines. consideration prior to implementation. Environment, Health and Safety. The The units audited and the participat- • Responsibility for society – At corporate audit criteria have been formulated using ing internal auditors have all spoken very and individual employee level, we shall The New Boliden Way, the Operational highly of the audits. They were of the show commitment to the societies in Policy, and the Group wide guidelines. opinion that this is a good way of trans- which we operate and make a positive Each of the Group’s units will be audited ferring knowledge between the various contribution to their development. at least once every second year. The audit units and of boosting the competence Concrete policies and guidelines have team is made up of employees from dif- levels of the individual internal auditors. been produced for work relating to en- ferent areas of the Group, and is headed 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 12

12 ORGANISATION AND MANAGEMENT

Internal audit of the Odda zinc smelter

every second year. Odda was number two in the list of units to be audited. The Bergsöe lead smelter was the first. The focus at Odda was on issues such as communication, risk management/ “ contingency planning, document handl- ing, and incident management.

The feedback report is divided into: • Positive observations • areas with scope for improvement and • deviations. An action plan will be used to follow up on the latter two categories. The Group staff is accompanied by EHS representa- The Group-wide guidelines for Environ- EHS Group staff at Boliden’s zinc smel- tives from other units, with the aim of ment, Health and Safety (EHS) formed ter at Odda in October 2005. Similar promoting the transfer of knowledge be- the basis for the audit performed by the audits will be performed at each unit tween the units. ” Unit and Individual awards for 2005

An annual award for commendable work in the field of Environment, Health and Safety was instituted by Boliden in 2005. The award is presented in two categories: Unit and Individual. The Individual EHS award for 2004 “went to Christer Winsa from the Aitik mine for his indefatigable and systematic efforts to enhance knowledge and awareness of risks in the workplace among employees and contractors alike. The “best Unit” award for 2004 went to zinc smelters Kokkola for its long- term work and efforts that have resulted in excellent performances in the fields of Environment, Health and Safety. ” 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 13

ORGANISATION AND MANAGEMENT 13

Goals and goal fulfilment 2005

The baseline year for Boliden’s goals is 2004 and all improvement goals relate to this year

MANAGEMENT SYSTEMS RESULTS, 2005 Internal guidelines for EHS will be implemented throughout the Work is in progress at all operational units. Group by 31st December 2006. Internal, Group-wide audits against current guidelines will be Audit plans and audit routines have been established. carried out every second year at each unit. In 2005, four of nine operational units were audited. All units will be ISO 14001 certified by 31st December 2008. Four units are ISO 14001 certified. Work towards certification has begun at other units. The Rönnskär copper smelter is planning to achieve certification in 2006. All units will be OHSAS 18001 certified, or meet the require- Three units are OHSAS 18001 certified and one, Tara, achieved ments of ISRS (level 6) by 31st December 2008. ISRS level 7 certification in 2005. Work towards certification has begun at other units. An energy management system will be implemented at all units Two units have an energy management system. A further four by 31st December 2008. units plan to implement an energy management system during the first half of 2006. Group-wide guidelines for quality work will be adopted in 2006. Work has begun within the Group network for quality work.

PEOPLE A Group-wide inventory of key individuals and future managers The inventory process has begun and is scheduled for completion will be carried out. in 2006. The frequency of accidents leading to absence (total for the The accident frequency has increased during the year from 11.1 Group) will be reduced by at least 25 per cent by the end of 2007. to 11.9 per 1 million hours worked. Absence due to sickness (total for the Group) will be reduced by Sickness absence has remained unchanged from 2004 to 2005 at least 10 per cent by the end of 2007. (5.3 per cent).

ENVIRONMENT The Group’s specific emissions to air of metals Emissions have been reduced by 10 per cent during the year. (Cu+Zn+Pb+Ni+Cd+As) will be reduced by at least 20 per cent by 31st December 2008. The Group’s specific emissions to water of metals Emissions have increased by 4 per cent during the year. (Cu+Zn+Pb+Ni+Cd+Hg) will be reduced by at least 20 per cent by 31st December 2008. The Group’s specific emissions of carbon dioxide will be reduced Emissions of carbon dioxide have been reduced by 2 per cent by at least 5 per cent by 31st December 2008. during the year. The Group’s specific generation of non-industry specific waste The quantity of non-hazardous waste sent to landfills has been sent to landfills will be reduced by at least 20 per cent by 31st reduced by 5 per cent since 2004. December 2008. There will be a balance between rehabilitation of disturbed areas 47 hectares of previously unaffected land have been utilised and the use of new land over a five-year period. during the year. 30 hectares of affected land have been the subject of reclamation work.

COMMUNITY All units will produce a public, local EHS Annual Report. All units published an official, local EHS Annual Report in 2005. All units will have and maintain an external contacts plan and Work on developing these plans has begun. will act in accordance with this plan. A Group-wide sustainability report in accordance with This is the first Group-wide sustainability report for Boliden. international practice will be produced, starting in 2006. 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 14

14 PEOPLE

People

Boliden wishes to develop a learning low up on the implementation of The The frequency of accidents leading to business culture that is open to change so New Boliden Way. absence from work to be reduced by at least as to become the company of choice for 25 per cent, and for absence due to sickness customers, suppliers and, in particular, TRADE UNION COOPERATION to be reduced by at least 10 per cent by the employees. Boliden respects its employees’ right to end of 2007. join a trade union and actively supports EMPLOYEES cooperation between employers and Boliden operates in an industry and Boliden has 4,530 employees, of whom employees and their respective represen- engages in activities that are associated 2,262 work in Sweden, 1,166 in Finland, tatives, in every area of shared interest. with risk. A strong commitment to issues 391 in Norway, 683 in Ireland and 28 in For a number of years, the company relating to health and safety is therefore a other countries – primarily the Nether- has had an agreement with the trade matter of high priority throughout the lands. The company’s ambition is to union organisations with regard to union- Group. Working correctly not only create a working environment that enthu- related cooperation at all levels within the boosts our own well-being and results, it ses, involves and develops all of them, Group. The Boliden Works Council also increases the outside world’s con- while also enabling them to maintain a (BWC) is the company’s overall trade fidence in Boliden. balance between working life and private union body, comprising union representa- Boliden’s strategy, wherever possible, life. At Boliden, older people, younger tives from all units. BWC provides a is to minimize the risk of accidents to people, specialists, generalists, men and forum for important dialogues between which its employees are exposed. Focu- women should all be able to make a con- the employees’ representatives and the sed efforts at several of Boliden’s units tribution and develop. As part of our company management, and BWC is have yielded results in this respect. At efforts to promote integration, employees therefore an important disseminator of the end of 2005, for example, the Harja- are encouraged to set up meetings and our corporate culture and a bridge be- valta copper smelter received an honora- opportunities to exchange experiences tween different units and countries. ry mention from the Finnish Ministry of both between the different units and Boliden applies the terms of employ- Health and Social Welfare for its efforts across the generation boundaries. ment and labour market rules prevailing to reduce accidents in the workplace. In early 2006, Boliden launched an in the various countries in which it In 1999, Harjavalta set a zero tolerance employee opinion survey known as operates. target for accidents, and by November “My opinion”. The aim of the survey is Around 80 per cent of all of Boliden’s 2005, the unit’s electrolysis plant at Pori to identify areas where there is scope for employees are trade union members. had recorded 1,400 accident-free days. improvement, both at local and at Three of Boliden’s nine facilities are Group wide level, and to act as a tool for HEALTH AND SAFETY now certified in accordance with Boliden’s senior management in their Boliden’s goal is for all units to be OHSAS OHSAS, and Boliden’s Tara mine in target management work. “My opinion” 18001 certified or to meet the requirements Ireland achieved ISRS level 7 in 2005. will, among other things, be used to fol- of ISRS level 6 by the end of 2008. In 2005, the sick leave rate within the 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 15

PEOPLE 15

Group was 5.3 per cent and the lost time TRAINING AND RECRUITMENT Employee breakdown by country injury frequency was 11.9 accidents per A Group wide identification and inventory million hours worked. of key individuals and future managers has Sweden 50% Both the lost time injury frequency Finland 26% been initiated and will be completed by the Ireland 15% and sick leave rate have generally fallen end of 2006. Norway 8% throughout the Group since 1992 from Other 1% their previously high levels, but there are There is a constant focus within the signs at some units that the number of Group on recruiting new personnel – both accidents is increasing. Targeted measures experienced and newly qualified – and on Sick leave rate (percentage of have been initiated in these cases. Tragic- developing the skills of existing employees. contracted working hours)

ally, one employee died in an accident at Boliden works closely with universities % Boliden’s Tara mine in Ireland in 2005. and upper secondary schools to generate 8

Over the past year, the company’s interest in the mining and smelting 6 health network has drafted an action industry among young people. As several 4 programme for health promoting of Boliden’s units are facing a generation 2 measures. The programme rests on three shift this work is being prioritised. cornerstones: problem solving, pre- Employees’ skills are developed in a Year 02 03 04 05 ventative and health promoting number of ways. Development plans are measures. A number of key indicators discussed with each employee at an have been identified within the frame- annual performance review. In addition, Lost time injury frequency (number work of the programme. Staff turnover the operations also set their own object- per 1 million hours worked)

as well as drug and alcohol-related ill ives. The goal set by the Kokkola zinc 20 health will be measured, for example, in smelter, for example, is for every em- 15 addition to the sick leave rate and lost ployee to hold an official professional 10 time injury frequency. qualification by 2015.

The development programme entitled 5 “Young Professionals” and aimed at young Boliden employees with higher Year 02 03 04 05 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 16

16 PEOPLE

education was launched at Group level – counteracting a distorted gender break- goods, who buy the company’s copper and in 2005. The goal is to give the particip- down within various occupational zinc metal. Boliden has introduced a sys- ants a chance to learn about Boliden’s groups, tem of audits for customers who buy cer- operations and fundamental values and – increasing the percentage of female tain selected products, such as mercury to form personal networks. The pro- managers, and copper cement, in order to minimize gramme is also designed to promote the – maintaining equal opportunities for the environmental and health risks associa- integration work within the Group. The men and women throughout the ted with incorrect use. Boliden has deci- first group of Young Professionals com- Group’s operations, and ded that these products will only be sold prises 18 employees between the ages of – ensuring that no pay discrimination to a few pre-approved European custo- 25 and 35. Eight of them are women. occurs. mers. Six customers were audited in 2005. An efficiency enhancement program- EQUAL OPPORTUNITIES CUSTOMERS AND SUPPLIERS me is currently being implemented for Boliden strives to ensure diversity with Boliden’s Code of Conduct describes the input goods and service procurement regard to gender, age, nationality and overall values and guidelines for all with the aim of cutting costs. This is other factors that contribute to a business support activities. Boliden being achieved partly by reducing the stimulating equal-opportunities work- expects its partners to act in accordance number of suppliers, intensifying the place. Boliden does, however, operate in with Boliden’s values. relationship with remaining suppliers, what is traditionally a male-dominated Boliden’s contacts with suppliers can, standardising purchases and improving industry. In 2005 12.4 per cent of em- roughly speaking, be divided into two the efficiency of the processes. The total ployees were female, an increase of 1.5 parts. One section procures metal con- number of suppliers is approximately percentage points since 2002. Women centrate and secondary metal raw 6,000, of whom 25 account for 45 per account for 12.5 per cent of Boliden’s material within the two market organisa- cent of the volumes purchased. Group Management and 25 per cent of tions, Copper Market and Zinc Market, Group-wide routines are now being its Board of Directors. while the other is responsible for the drawn up for supplier evaluations in Measures and programmes are con- purchase of all goods and services, order to ensure, among other things, that stantly being implemented within the including logistics. Boliden uses suppliers who are quality Group with the aim of: Boliden’s customers mainly comprise conscious and environmentally aware – enabling employees to combine their European smelting and steel companies as and who take responsibility for their working and family lives, well as manufacturers of semi-finished internal work environment. 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 17

PEOPLE 17 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 18

18 ENVIRONMENT

Environment

Environmental impact is an unavoidable tions. Boliden is also subject, where appealed by Boliden because, among consequence of Boliden’s operations at its applicable, to EU regulations concerning other things, the dust emissions condi- mines and smelters. Boliden’s operations waste management, chemicals and tions have been set at a level that are at the beginning of the refinement carbon dioxide emissions. The EU has would be impossible to maintain in the chain in our production, consumption recently decided to issue a new directive event of disruptions to production. and service society. The ore is mined on mining waste and this will now be • Negotiations have been conducted from rock which has an impact on the implemented into national legislation. with the Environmental Court regar- landscape, causes noise and dust, and In addition, work is underway within ding a permit for a new tailings pond gives rise to waterborne emissions and the EU on formulating new chemicals in the Boliden Area. In March 2006, large quantities of waste, mainly in the legislation, REACH, which will impact the Environmental Court rejected form of tailings, as it is known, and on parts of Boliden’s operations when it Boliden’s application. Boliden has filed waste rock. The mined ore is concentrat- comes into force. an appeal. ed and the concentrate is transported to All of Boliden’s units hold the permits • Work is also in progress at the Garpen- the smelters, which extract and refine and licenses required for their ongoing berg mine to apply for a permit for metals. The environment is also affected activities and expansions, and all opera- future production increases, as well as at this stage by airborne and waterborne tions in 2005 were conducted within the other changes. emissions and waste generation. framework imposed by legislation and Boliden has made major progress on applicable terms and conditions. REPORTING AND TARGETS its environmental protection work in The following significant permit Boliden has developed an index as a recent decades. The efficiency of the pro- application issues have been processed in group-wide indicator for environmental duction processes has been enhanced and 2005: performance. It is a key ratio that relates modern cleaning equipment has been • The Aitik mine was granted a new consumption and emissions to produc- installed, and these two factors have permit to increase annual production tion. The indexing enables the environ- reduced both airborne and waterborne from 18 million to 28 million tonnes. mental performance of both smelters and emissions, as well as the specific energy The part of the permit that refers to mines to be added to a Group’s overall consumption. Boliden’s smelters are now financial security for reclamation work indicator, which shows development among the most modern and cleanest in has been appealed by the Swedish trends. The base year for this index is the world. But new knowledge is con- Environmental Protection Agency. 2002 and, as such, has a value of 100 for tinuously being acquired. Customers, • The Pori electrolytic refinery (part of the that year. legislators and other stakeholders are all Harjavalta smelter facility) has been Boliden has set a number of Group- imposing new demands, and new com- granted a new permit that complies wide targets. The base year for all of petitive situations are arising. Boliden with the IPPC directive’s requirements these targets is 2004. must therefore work unceasingly to and which permits increased produc- improve its environmental performance. tion. Boliden has lodged an appeal RAW MATERIALS CONSUMPTION against some of the conditions as the Boliden’s structure as an integrated PERMITS AND LEGISLATION sampling requirement has increased mining and smelting company means, in All of Boliden’s facilities in Sweden, considerably. practice, that Boliden’s mines produce Finland, Norway and Ireland are subject • The permit granted to the Harjavalta raw materials in the form of metal con- to environmental legislation and regula- copper smelter in 2004 has been centrates for the smelters. One of the 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 19

ENVIRONMENT 19 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 20

20 ENVIRONMENT

benefits of this is that Boliden has more water purification, and limestone and sand be required to handle them, depending reliable control over the origins of its raw are added to form slag at the smelters. on their content. The registration re- materials. In-house zinc and lead pro- Boliden works constantly to evaluate quirements will probably apply to duction accounts for 80 per cent of the and assess the risks associated with secondary raw materials, i.e. recycled smelters’ capacity, with copper produc- chemicals hazardous to health and the materials, but it is too early to say what tion from the mines accounting for environment. Boliden’s Swedish opera- form these requirements will take. approximately 25 per cent of the quanti- tions have established a central chemicals ty of metal produced. group tasked with addressing general ENERGY Recycled metal-bearing material issues, such as purchasing and risk assess- Boliden’s goal is for all facilities to im- accounts for a substantial part of metal ment routines, etc. plement energy management systems by the production. The Group’s other operations in end of 2008. Finland, Norway and Ireland handle the CHEMICALS AND GOODS health and environment related aspects Mines and smelters both require large Boliden aims to reduce the number of of chemicals within the framework of the amounts of energy, and electricity costs hazardous chemicals used and to replace environmental management system and are among Boliden’s largest expenditure them with less hazardous equivalents the purchasing processes. items. Around 15 per cent of Boliden’s wherever possible. The EU is currently drafting new total expenses comprise energy related chemicals legislation, known as REACH. costs, primarily for electricity. The largest The processes within the Boliden Group The aim of REACH is to improve know- consumers are the smelters. At the same require not only ore, metal concentrates ledge of and control over chemicals time, production is increasing at the and waste metal, but also chemicals and handling within the EU by, for example, mines – they are getting deeper and this other materials. Mining ore and waste mandatory registration. Boliden will be means an increase in their energy con- rock naturally requires the use of explo- affected by the new chemicals legislation sumption. Boliden’s strategy with regard sives, one of the by-products of which is in a number of ways: the proposal will, to our in-house energy consumption nitrogen emissions. Collecting agents and for example, introduce a requirement to focuses both on enhancing the efficiency frother are added to the process at the register the metals that Boliden pro- of our energy usage and, wherever pos- mines’ concentrators, where ore is proces- duces. It seems likely that the registration sible, on using renewable forms of sed to create metal concentrates. Calcium requirement will not apply to ores and energy. Boliden is one of the initiators of and liquid caustic soda are used during metal concentrates, but that permits may BasEl, in which some fifteen companies,

Raw materials consumption Raw materials (tonnes) 2002 2003 2004 2005 Sand 245 528 259 908 281 518 251 944 Explosives 15 287 17 131 15 742 20 652 Chalk and limestone 25 187 25 258 28 426 29 310 Liquid caustic soda 34 850 50 343 57 737 36 555 Collecting agents (flotation) 576 768 757 760 Frother (flotation) 190 253 206 209 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 21

ENVIRONMENT 21

Surplus energy from Rönnskär benefits society

New electricity corresponding to the annual electricity consumption of 1,000 normal-sized houses is produced from recovered energy from the Rönnskär plant – with no environmental impact. This is the heart of the ECOEL project, a collaboration between Boliden and the energy company, Skellefteå Kraft.

Boliden’s Rönnskär smelter is an energy- CUTTING CONSUMPTION COOPERATION BETWEEN INDUSTRY intensive industry. The facility works “ECOEL has laid the foundations for a AND ENERGY COMPANIES constantly to reduce its energy consump- more energy-efficient Rönnskär. Boliden The project is a great example of co- tion, and over the last 20 years it has benefits by reducing its consumption of operation between an industry and an successfully halved its consumption per fresh water and oil, cutting operating energy company. tonne of product. The ECOEL project and maintenance costs, and sharing in Rönnskär already supplies district is another step in this direction. Total the electricity production revenues,” says heating to Skellefteå Kraft to heat areas energy reclamation levels at the smelter Rönnskär’s General Manager, Roger in the nearby communities of Skellefte- are increasing by around 30 per cent at Sundqvist. hamn and Ursviken. The quantities “the same time as electrical energy costs The name, ECOEL sends a clear supplied will probably increase in the are being cut. As ECOEL uses com- signal that concern for the environment future. pletely new technology in some areas of is one of the cornerstones of the project. There is clear potential for further the project, it is very much in tune with An increasing percentage of the process increasing the efficiency of the smelter’s the trend towards a sustainable society. heat from the sulphur product plant is energy consumption. now being processed and converted into “We can already see opportunities to EXPANDED DISTRICT HEATING district heating, instead of simply being produce substantially larger amounts of NETWORK discharged into the sea. The project district heating than we do at present,” The project entails a restructuring of reduces Rönnskär’s fresh water consump- says Roger Sundqvist. “In the short- Rönnskär’s energy system. Waste heat tion by 300,000 m3 every year. Further- term, we can replace existing electrically from the smelter’s processes is used by a more, the need to provide support fuel powered heating systems with district substantially expanded district heating for the district heating system in the heating and connect more premises up network to heat premises in the indust- form of oil is minimised to cover any to the district heating system. We’re also rial area, many of which were previously operational disruptions during the cold looking at making better use of the waste steam-heated. The steam freed up can months of the year – which cuts airborne heat from processes where utilisation now be used instead to produce elec- carbon dioxide emissions. levels are currently low. tricity in Skellefteå Kraft’s turbines and ” generators, which are located in Rönn- skär’s energy centre. Sufficient electricity to heat 700 homes electrically is already being produced. The increase will yield approximately 30 GWh of electricity per annum, corresponding to a further 1,000 homes, plus some 200 GWh of district heating that will mainly be used to heat premises at Rönnskär. The sulphur product plant lies behind the new and previously unused energy. New heat exchangers utilise the process energy to produce water heated to 100°C for use in district heating. As steam is a more valuable form of energy than district heating, using the hot water to heat premises and converting the steam into electricity is more efficient. 35579_Hallbarhet_ENG 06-05-15 19.52 Sida 22

22 ENVIRONMENT

Land usage (hectares) 2002 2003 2004 2005 Total area 19 337 19 837 19 858 19 806

Affected, as yet not rehabilitated (opening balance) 4 703 4 652 4 681 4 652 Affected during reporting period 0 38 1 47 Rehabilitated during reporting period 50 9 30 30 Affected, as yet not rehabilitated (closing balance) 4 652 4 681 4 652 4 669

Energy consumption per energy type, mainly operating in the electricity- courses receive emissions from Boliden’s 2005 (total 17 million GJ) intensive forestry, steel, chemicals and operational activities. The most import- Electricity purchased 72% Coal/coke 11% mining industries, joined together in ant recipients are the Kalixälv, Skellefte- Diesel 6% 2005 to augment the supply of elec- älven and Dalälven rivers in Sweden, the Fuel oil 4% Waste oil 3% tricity, mainly in Sweden and Finland. Gulf of Bothnia between Sweden and Natural gas 3% Programmes and measures designed Finland, the River Boyne in Ireland, the Heating/steam purchased 1% to increase energy efficiency are taking River Kokemäenjoki in Finland, and the place at the various Boliden facilities. Sörfjorden fjord in Norway. Rivers and The ECOEL project, a partnership be- water are affected even when mining tween the Rönnskär copper smelter and operations have ceased in an area. Specific energy consumption Skellefteå Kraft (see separate article) is Boliden implements monitoring pro- Index just one example. Another is the ongoing grammes in cooperation with the relevant 100 expansion and efficiency enhancement authorities for both operational facilities 75 work at the Harjavalta copper smelter and those which have closed down.

50 and the tank house at Pori. The invest- Boliden has reduced its freshwater ment totalling approximately SEK 400 consumption by approximately 16 per 25 million means not only increased pro- cent since 2002.

Year 02 03 04 05 duction capacity and reduction of unit costs by approximately 20 per cent, it LAND MANAGEMENT will also reduce specific energy consump- Boliden’s goal is to establish a balance, tion by 13 per cent. Water consumption, 2005 over a five-year period, between the (total 180 million m3) rehabilitation of previously disturbed WATER CONSUMPTION land and the use of new land.

Seawater 51% Boliden is working continuously to reduce Surface water 23% its consumption of, and emissions to, water. As a mining company actively involved in Recirculated 21% Groundwater 4% exploration and mining activities, Boliden Municipal 1% Water is one of the vital process elements requires access to large areas of land, both for mining, ore concentration, and metal for its exploration work and to enable it production. At the same time, water is to run mining operations and establish a valuable natural resource and it must be tailings storage facilities. It is important, used with respect, even though the coun- therefore, that the legal and permit-related Specific freshwater usage tries in which Boliden operates, do not preconditions are clear, unambiguous and Index 100 normally suffer from water shortages. secured, not least with regard to the Boliden is working continuously to establishment and conduct of operations. 75 optimise its water usage and recycling Boliden’s guiding principle is to maintain 50 systems and to develop water treatment an ongoing dialogue and to cooperate

25 methods in order to reduce the con- with landowners, authorities and other sumption of, and emissions to, water. stakeholders, with the aim of achieving

Year 02 03 04 05 Several bodies of water and water- consensus at an early stage. 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 23

ENVIRONMENT 23

Boliden’s operations, and its mining Reclamation measures are an ongoing The reclamation programme at the Tara operations in particular, have an impact feature, both in areas where operations mine in Ireland includes analyses of flora on surrounding areas of land and on the have ceased and in those where they are and fauna in order to determine the en- biological diversity of these areas. Approx- still being conducted. Boliden has im- vironmental and healthrelated effects of imately 20 per cent of Boliden’s total land plemented reclamation measures at about the reclaimed areas. holdings of around 20,000 hectares com- 50 mines to date. Planting trials are, for Provisions for reclamation costs are prises disturbed and as yet unrehabilitated example, currently taking place at the continuously reviewed based on an esti- land. This figure also includes currently Aitik copper mine, in cooperation with mate of future costs, taking account of active areas. Approximately 8 per cent of the Swedish University of Agricultural modern technology and other circumstan- Boliden’s land holdings are designed to Sciences, with the aim of developing an ces. Provisions are made for the estimated protect and promote nature conservation efficient means of greening rehabilitated reclamation costs and booked as costs interests. Between 2002 and 2005, 86 areas in the future. Trials to date have over the total operating period. At the hectares of previously unused land have demonstrated that planting directly on end of 2005, there was a total of SEK 527 been utilised and 119 hectares of the surfaces of tailings ponds is possible, million for reclamation costs. disturbed land have been rehabilitated. but requires the addition of nutrients. 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 24

24 ENVIRONMENT

Metal emissions to air DAM SAFETY process and cooling water from the smel- Dams are used, often in combination, to ters and the tailings ponds. The intro- Kg deposit tailings, to treat process water, duction of more efficient cleaning tech- 80 000 Pb Zn and for water storage. Boliden is respons- niques and water recirculation have 60 000 Cu ible for a total of 34 dam facilities for enabled a reduction in metals emissions. 40 000 water regulation and tailings impound- Emissions of copper, zinc and lead to air

20 000 ment in Sweden, Norway, Finland, Ire- and water have been collectively reduced land and Canada. This figure includes by 60 per cent and 52 per cent respecti- Year 02 03 04 05 both operational facilities and those no vely since 2002. longer operational. Boliden has been conducting a dam Carbon dioxide safety programme for a number of years Metal emissions to water Boliden’s goal is to reduce carbon dioxide now in accordance with the Swedish emissions by at least 5 per cent per unit Kg power industry’s guidelines for dam produced by the end of 2008. 30 000 Pb Zn safety, RIDAS. In addition to the co- Cu 20 000 ordinator who is responsible for the Direct emissions of carbon dioxide from

Group’s dam safety work, every opera- the combustion of fossil fuels, are gene- 10 000 tional unit with their own dams has an rated by Boliden’s processes and trans- appointed Dam Safety Manager. portation. Specific emissions of carbon

Year 02 03 04 05 dioxide from Boliden processes have fal- EMISSIONS AND WASTE len by 16 per cent since 2002. Emissions of metals and other substances Two of Boliden’s facilities, the Rönn- into the air, soil and water are among the skär copper smelter and the Bergsöe lead Carbon dioxide emissions, 2005 most significant environmental issues for smelter, have taken part in the trade in (total 703 ktonnes) Boliden. The company strives constantly emissions rights since 2004. The facilities to reduce these emissions and can in fact have been allocated 12,492 and 46,876 Indirectly via purchased electricity, heating demonstrate that specific emissions for tonnes per annum, respectively, during and steaming 51%

Liquid fuels 23% all reported parameters have been the period from 2006 to 2008. Coal/coke 21% steadily declining. Natural gas 2% Other 3% Sulphur dioxide Metals Constant process development and the Boliden’s goal is to reduce the collective introduction of efficient flue gas cleaning emissions to air of copper, zinc, lead, have led to a substantial reduction in nickel, cadmium and arsenic per unit sulphur emissions from Boliden’s smelters. Specific carbon dioxide emission produced by at least 20 per cent by the end Specific emissions have fallen by 30 per of 2008. The goal for specific emissions to cent since 2002 and measurements of air Index quality also show low sulphur dioxide 100 water is to achieve a 20 per cent reduction in copper, zinc, lead, nickel, cadmium and levels outside the industrial areas. Sulphur 75 mercury by the end of 2008. dioxide and sulphuric acid are obtained 50 from sulphur-containing process gases

25 Metals are emitted into the air via pro- and sold externally. The main buyers for cess gases, principally from the smelters. these products are the forestry and chemi-

Year 02 03 04 05 Emissions to water take the form of used cals industries. 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 25

ENVIRONMENT 25

Sulphur dioxide emissions to air Waste and residual products, 2005 Tonnes Waste quantity (tonnes) 2005 8 000 Waste rock and tailings sand 45 160 660 6 000 – internal landfills (ktonnes) 31 464 894

– internal construction purposes (ktonnes) 1 962 604 4 000

– storage for future use (ktonnes) 11 733 162 2 000

Hazardous waste 728 195

– process waste for internal landfills 698 326 Year 02 03 04 05 – other hazardous waste, processed internally 156 – externally processed 29 713

Non-hazardous waste 133 326 – internal landfills 82 975 Specific sulphur dioxide emissions to air

– recycling and energy reclamation 49 045 Index – external landfills 1 306 100

75

50

Sulphur dioxide is emitted into the air again extracted as part of the concentra- 25 from mines and concentrators, partly in tion process. The slag from Harjavalta’s

conjunction with the use of diesel smelting processes is also concentrated Year 02 03 04 05 powered machinery and vehicles, and and the metal content returned to pro- partly as a result of heating with fossil duction. Other waste, such as metal fuels and thermal dewatering of mineral waste, paper, waste oil, etc., is sent for concentrates. Technology that eliminates energy recovery, recycling or to landfill. Non-hazardous waste sent to external landfills airborne emissions is, however, increas- The EU has recently decided to issue Tonnes ingly being used for dewatering. a new mine waste directive. A BREF 2 000 note (Best available technology Reference 1 500 Waste and Residual Products note) for mine waste processing has also 1 000 Boliden’s goal is to reduce the amount of been produced in tandem with this non-industry-specific waste sent to landfills directive. Boliden has been actively 500

by at least 20 per cent by the end of 2008. involved in developing these documents via the Swedish mining industry organi- Year 02 03 04 05 Boliden’s waste is mainly operation sation, SveMin, and has a generally posi- specific waste and comprises waste rock, tive attitude towards the new European tailings sand, slag, sludge and dust. A legislation, which not only provides a significant percentage of the waste rock high degree of environmental protection, and tailings is used to backfill the mined but also takes into account the industry’s out stopes in underground mines. Gran- special conditions. ulated slag from the copper smelters is The new directive will, however, in- used as building material. Copper bear- clude requirements to post security for ing slag from the Rönnskär smelter is further costs, and this may entail sent to the concentrator in the Boliden additional financial commitments for Area, where the metal content is once Boliden. 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 26

26 ENVIRONMENT

Reclamation “ in Laisvall

Between 1943 and 2001, Boliden conducted mining operations in Laisvall in Norrbotten. The mines have closed, but the operations continue.

This is the situation in Laisvall today – the office and the old warehouse have been pulled down and the equipment and other buildings sold. The operations now focus primarily on reclamation and have at times been fairly intensive. This year, the final reclamation measures for the tailings and settling ponds (H) are due to be implemented. The very last measure relating to the these areas,” says Björn Johansson, one “We estimate that most of the major ponds involves designing a new outlet of Boliden’s employees who works in reclamation work will be completed in for the settling pond (pond C) that will Laisvall. There are also several sub-con- 2006,” says Björn Johansson. be lowered to its previous level prior to tractors involved on a more or less Some monitoring will be required in being dammed up. This is due to take regular basis in the close down and the area for a certain period after this. place next year. reclamation work. This is particularly true of the banks of “We have used moraine, bark chips the ponds, where checks will have to be and digested sludge to cover the ponds COMPLETION IN 2006 performed to ensure that there has been and establish some vegetation. The bark Several more buildings are due to be no erosion damage in connection with chips and digested sludge have been used removed during the autumn, while the thaws or sever downpours. It is also to add organic material and fertiliser so concentrator is due to be demolished necessary to check that the vegetation as to encourage sustainable vegetation in next year. has not been damaged. ” 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 27

ENVIRONMENT 27

100 per cent recycling

Boliden Bergsöe, located in southern Sweden and employing 100 people, is one of Europe’s leading producers of highly refined lead and tin. Bergsöe is the Nordic region’s only dedicated secon- dary smelter for lead and tin, making it the largest single consumer of used lead batteries in the region. Production has been taking place at this facility since 1942, when it was known as Paul Bergsöe and Son. With a record high lead price, an efficient process and pro- duction, and a facility that is one of the “most eco-friendly in Europe, the smallest facility in the Boliden Group has shown that recycling pays.

RECOVERING LEAD AND TIN “About 70,000 tonnes of waste batteries are delivered to Bergsöe by rail, road and sea. Due to the environmentally sensitive nature of the cargoes, the transporting is handled by specially licensed companies. The waste batteries are delivered in stain- less steel, acidproof containers, to ensure stone, coke, sand, mill scale and cast iron used by the electronics and automobile no contamination occurs en route,” says chips,” explains Catharina Nordeman. industries and by artists. Catharina Nordeman, Bergsöe’s Environ- “The lead is then refined and then alloy- mental Manager. ed with other substances, such as anti- ACTIVE ENVIRONMENTAL WORK Every year, Bergsöe takes delivery of mony or calcium, depending on what The process at Bergsöe is environment- between 4 and 5 million scrapped lead the customer wants, to give them the ally demanding and the facility has batteries that have done their job in pri- properties the customer requires. The implemented a systematic environmental vate cars, trucks, submarines, etc. The end products are cast ingots weighing 45 programme for a number of years now. majority of the 50,000 or so tonnes of kg, which are shipped out from Bergsöe Thanks to this work, the facility is now lead manufactured every year at Bergsöe, in 1 tonne bundles,” she continues. one of the cleanest in Europe. then ends up with battery manufacturers The almost 20,000 tonnes of incom- Boliden Bergsöe holds ISO 14001 in Europe. ing material that disappears during and 9001 certifications, and has an the process comprises battery acid and accredited laboratory for water sampling CUSTOMISED PROCESS plastic. The acid is neutralised in the and analysis. “When the batteries arrive, they’re purification plant and the plastic is Recycling levels for lead batteries in crushed and converted into raw lead by burned and partially used as a reduction the industrialised countries now exceed means of a combustion process in the agent in the raw lead process. 90 per cent, thanks to the highly shaft furnace. Waste batteries and other The surplus heat is supplied to Lands- developed recycling system. types of lead waste make up 66 per cent krona’s district heating network. “It’s exciting to be a significant part of of the raw materials. Around 20 per cent Bergsöe also takes delivery of scrap tin an efficient recycling process,” concludes is made up of recycled ashes and slag, that yields 1,000 tonnes of tin every year Catharina Nordeman. and the remaining 14 per cent is lime- in the form of ingots, bars and wire ” 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 28

28 ENVIRONMENT

RECYCLING around 40,000 tonnes every year. Boliden’s transport operations mainly Metals are one of the few substances that Approximately 10 per cent of copper involve carrying ore, metal concentrate can be recycled and recovered, in prin- production, 40 per cent of gold produc- and metals between mines and smelters, ciple, an unlimited number of times. In tion, and 75 per cent of all zinc produ- and between smelters and customers. A 2005 Boliden’s smelters took delivery of ced at the Rönnskär facility originates certain amount of ore is also transported approximately 225,000 tonnes of metal- from secondary raw materials. within the mining operations, between bearing recovered material for metal The Harjavalta copper smelter also the mining areas, the crusher and the extraction. began recycling electronic waste in 2005. concentrator. Over and above the recycling con- The Bergsöe lead smelter is the Nor- Approximately 3.5 million tonnes of stantly being carried out in all of the dic region’s only dedicated secondary metal concentrate and metals are trans- Boliden operating processes, three of lead and tin smelter (see separate article). ported every year between and from Boliden’s facilities are engaged in recycl- Boliden’s facilities. Approximately 60 per ing for purely commercial reasons. TRANSPORTING cent of this is by boat, 25 per cent by The Rönnskär copper smelter enjoys a Boliden is working to increase the effici- truck, and 15 per cent by train. dominant position in Europe as a re- ency of its transporting and to reduce cycler of electronic waste and handles emissions. 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 29

ENVIRONMENT 29

Eco-driving cuts emissions “ and costs

The Aitik mine in Sweden has organised by emissions of carbon dioxide and other heavy vehicles. Aitik hopes to be able to an Eco-driving training course for all its substances. The Eco-driving concept ori- reduce diesel consumption by at least 5 truck drivers, in cooperation with the ginated in Finland and was initially per cent, and thereby reduce carbon Swedish Road Administration. Eco-dri- introduced for private cars, and then for dioxide emissions by 1,900 tonnes. ving teaches the driver to drive efficient- buses and trucks. The method has now ” ly, reducing fuel consumption and there- been adapted for industrial machines and 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 30

30 SOCIETY

Society

Boliden aims to involve itself in, and make range of stakeholders. Several of the Finland in Finland, Norsk Industri in a positive contribution to, the development facilities invite members of the com- Norway and the Irish Mining and Ex- of the communities in which it operates. munity to regular information meetings ploration Group and the Irish Business and “open house” sessions in order to and Employees Confederation in Ireland. The Group currently has nine separate strengthen the dialogue with their Boliden has partnerships with univer- operations (mines and smelters) the neighbours. The Rönnskär copper sities such as Luleå University of Tech- majority of which are by far the domin- smelter, for example, invited the public nology, Umeå University and the Swed- ant employer in their communities. This to an information meeting in the ish University of Agricultural Sciences in means that the influence and effect of autumn of 2005 and successfully attract- Sweden, the Helsinki University of Tech- the individual operations on the com- ed both private individuals and their nology, Oulu University in Finland, the munity, not just as an employer but as a own employees. On the agenda were a Norwegian University of Science and purchaser of local goods and services, presentation of the Boliden Group and Technology in Trondheim and the infrastructure user, cultural and sporting Rönnskär, and details of the way in University of Bergen in Norway. In sponsor, etc, should not be under- which Rönnskär works with environ- Ireland, Boliden is working in partner- estimated and must be handled respons- mental and human resource issues. ship with, among others, University ibly. In the really small towns, Boliden’s In conjunction with the planning College Dublin and Trinity College at employees and their family form a work for the new Hötjärn tailings pond the University of Dublin. critical mass for the local community. in the Boliden Area, Boliden has con- The Group also maintains close con- This means that Boliden plays a decisive ducted negotiations with its neighbours tact with the Royal School of Mines in role for the source material on which the most affected by the plans. The negotia- London and the Colorado School of planning of schools, shops, etc is based. tions held in 2005 have resulted in Mines in Denver. A rough estimate shows that for every agreements being reached with property one Boliden employee, between five and owners to acquire all of the land directly seven additional job opportunities are affected by the tailings pond and which created in individual towns. was not already owned by Boliden. The Boliden’s operations have collectively agreements have, among other things, contributed a total of over 4 MSEK to a resulted in the property owners receiving variety of local and national sporting and compensation in the form of other land. cultural events, schools and hospitals in 2005. MEMBERSHIP AND COOPERATION Boliden is both a central and a local NEIGHBOURS member of several national and interna- Boliden’s goal is for all units to institute and tional organisations. The most important maintain a plan for external contacts, and include the European Association of to publish a local, public EHS (Environ- Mining Industries (Euromines), the ment, Health & Safety) report every year. European Association of Metals (Euro- metaux), the International Zinc Associa- Boliden’s operations not only engage in a tion (IZA) and the International Copper continuous dialogue with the relevant Association (ICA). At a national level, authorities and hold the statutory meet- Boliden is a member of SweMin (the ings with interested parties ahead of former Swedish Mining Association), the planned expansions, for example, they Association of Finnish Steel and Metals also make extensive contacts with a wide Producers and Technology Industries of 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 31

SOCIETY 31

The Schools Business “ Partnership

In November 2005, Boliden Tara Mines Ltd agreed to become involved in the Schools Business Partnership, a programme designed to promote cooperation between schools and business.

The cooperation programme is part of the recognize the value of completing at least and found it very interesting. Business in the Community – Ireland their upper secondary education. The fourth session focused on giving (BITC) initiative. BITC is Ireland’s natio- The programme involved a range of the students the chance to practice nal expert organisation on Corporate activities spread over several months. As applying for jobs and complete CVs. Social Responsibility and works to ensure part of the initial activity, representatives The students played an active part in that the effects of Irish business are of Tara Mines gave overview presenta- discussions and their homework involved maximised for all stakeholders. tions of their operations to a group of drafting a letter of application and a CV. The purpose of the Schools Business selected students aged between 16 and In the final session, personnel from Tara Partnership is to match up one business 18. This was followed up by a program- held mock job interviews and gave the and one school in partnership to engage me session entitled “A day in the life...” students valuable advice afterwards. in programs that gives the school’s at which several Tara employees each Both the personnel at Tara and the students insights into the world of work gave the students a 10-minute presenta- students from Beaufort College have as well as how to look for, find and retain tion of their role at Tara Mines. found the programme extremely worth- employment. Tara Mines was partnered During the third programme session, while, and in the light of these positive with Beaufort College, the only mixed the students from Beaufort College experiences, Tara Mines intends to be- secondary school in the area around the visited Tara operations where they toured come involved in the programme again town of Navan. One of the priorities for the surface facilities and the processing next year. Beaufort College was to encourage its plant. Many of the students had never ” students to continue at school and to seen a major industry like Tara before 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 32

32 SOCIETY

Boliden saves the shop in Garpenberg

Boliden isn’t just a mine owner in Garpenberg. The company is now also a joint owner of the town’s grocery store. “We’ve joined the business, “along with other stakeholders, in an attempt to secure an integral part of the communal services here,” says Gunnar Eklöw, Garpen- berg’s Administrative Director.

Garpenberg has a grocery store that has been battling the stiff competition of COMMUNAL SERVICES IMPORTANT us that this type of communal service Dalarna’s big shopping centres. The store Metall provided a loan and Boliden pro- continues to exist, both for our own was threatened with closure and the vided a subsidy. employees and for the town as a whole. expert advice needed to save the store “But we haven’t just thrown money at We hope that the solution we have put was proving expensive. But Boliden, the business – we’ve also imposed together will prove successful.” Metall (the Swedish Metalworkers’ demands on the way in which the busi- A number of non-profit organisations Union) and Dalarna County Administra- ness and the financial reporting are con- in the Garpenberg area have also added tive Board have banded together in an ducted,” says Gunnar Eklöw. “As the their support to the efforts to preserve attempt to ensure the store’s survival. major employer in the town, it’s vital to the store. ”

Geology Day in Boliden

Geology Day was held for the fifth year running in Boliden and a number of other locations throughout Sweden. Geology Day is a national theme day “that aims to disseminate information and knowledge about geology and geo- sciences. Activities took place in several locations in Sweden, and in the Boliden Area almost 400 people were attracted to activities that included a display of rock types and minerals, ore detection using metal detectors, stone polishing, a display of the drill core archive, and, of course, gold washing. The local organisers, including Boli- den, Bergrum and Far North Sweden Gold Panning Club, hope that Geology Day will demonstrate the importance of our metals and their wide-ranging spheres of application. ” 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 33

GLOSSARY 33

Glossary

Alloy ISRS Substance with metallic properties and International Safety Rating System, a work which is composed of two or more chemical environment management system. elements, at least one of which is a metal. Metal ashes Base metals Pulverised slag from metal foundries and The most commonly occurring metals, such brass manufacturers. as copper, lead and zinc, etc. Metal content Cathode copper The amounts of e.g. copper or zinc 99.99% pure copper plates. contained in concentrates or ore.

Concentrate OHSAS The product that results from the separa- Occupational Health and Safety Assessment tion of the economically valuable minerals in Series, work environment management an ore from those with no economic value. systems. Separation by milling and flotation, consider- ably increases the grade of the material. Open pit A method of mining mineral deposits located Concentrator near the surface which involves stripping A plant in which ore is processed the overburden to expose the ore. mechanically and/or chemically to extract and produce metal concentrate. REACH Registration, Evaluation and Authorisation Concentrator tailings of Chemicals, the EU’s proposal for a new Fine-grained waste from the concentration chemicals directive. In brief, this proposal process used to obtain metal concentrate. entails the imposition of requirements with regard to tests performed to assess the Galvanising impact on health and the environment of A process whereby zinc is applied to steel many chemicals available in the market. to protect it against corrosion. Secondary raw materials GJ Various types of materials from which Giga joule. I GJ = 0.28 MWh. metals can be recovered, e.g. electronic and other types of scrap metal, metal ILO ashes, slag, dust, scrap lead batteries, International Labor Organisation, a UN body etc. devoted to labour related and occupational issues. Slag Product generated in conjunction with Index various types of metallurgical reactions In order to enable the environmental per- and which primarily consists of oxides. formances of both mines and smelters to be added together, an index-linked indicator Smelter- and electrolytic refinery has been developed. This is a key ratio that A plant in which metal raw materials relates consumption and emissions to quantity are processed to separate metals from of metal (copper, zinc and lead) produced at impurities by means of high-temperature various units. The baseline year for the index reactions. is 2002, which has been allocated a value of 100.

IPPC Integrated Pollution Prevention and Control – joint EU regulations applied to licenced industrial achvities.

ISO International Organisation for Standardisa- tion. The organisation’s standards apply, among other things, to environmental mana- gement (ISO 14001) and quality (ISO 9001). 35579_Hallbarhet_ENG 06-05-15 19.53 Sida 34

34 BOLIDEN LOCATIONS

Boliden Locations

THE GROUP Boliden Harjavalta Oy ZINC SMELTERS Boliden AB FI-29200 Harjavalta Boliden Kokkola Oy Box 44 Finland PL 26 SE-101 20 Stockholm Tel +358 2 535 8111 FI-67101 Kokkola Sweden Fax +358 2 535 8239 Finland Visiting address: Tel +358 6 828 6111 Klarabergsviadukten 90 Boliden Harjavalta Oy Fax +358 6 828 6005 Tel +46 8 610 15 00 Copper Refinery Fax +46 8 31 55 45 P.O. Box 60 Boliden Odda AS Fax +46 8 30 95 36 (Legal Affairs) FI-28101 Pori Eitrheim Finland NO-5750 Odda Tel +358 2 535 8111 Norway MINING Fax +358 2 535 8181 Tel +47 53 64 91 00 Boliden Mineral AB Fax +47 53 64 33 77 SE-936 81 Boliden Sweden COPPER MARKET Tel +46 910 77 40 00 Boliden Commercial AB ZINC MARKET Fax +46 910 77 42 34 SE-932 81 Skelleftehamn Boliden Commercial AB Sweden SE-932 81 Skelleftehamn Boliden Mineral AB Tel +46 910 77 30 00 Sweden Box 85 Fax +46 910 77 31 38 Tel +46 910 77 30 00 SE-982 21 Gällivare Fax +46 910 773 849 Sweden c/o Boliden Harjavalta Oy Tel +46 970 735 00 P.O. Box 287 c/o Boliden Kokkola Oy Fax +46 970 735 01 FI-02601 Espoo P.O. Box 287 Finland FI-02601 Espoo Boliden Mineral AB Tel +358 2 535 8111 Finland SE-776 98 Garpenberg Fax +358 9 547 2532 Tel +358 2 535 8111 Sweden Fax +358 9 547 2560 Tel +46 225 360 00 Fax +46 225 360 01 Boliden Zinc Commercial B.V. Blaak 22 Boliden Tara Mines Ltd NL-3011 TA Rotterdam Knockumber The Netherlands Navan Tel +31 10 201 2999 Co. Meath Fax +31 10 201 2998 Ireland Tel +353 46 907 9800 Fax +353 46 907 9899

COPPER SMELTERS Boliden Mineral AB Rönnskär Smelter SE-932 81 Skelleftehamn Sweden Tel +46 910 77 30 00 Fax +46 910 77 32 15

Boliden Bergsöe AB Box 132 SE-261 22 Landskrona Sweden Tel +46 418 572 00 Fax +46 418 572 05