Boliden to Strengthen Its Copper Position in Europe

"An expansion could double Aitik's copper production, therebyenhancing the material flow balance to our copper smelters. Byinvesting in Harjavalta, we will also be improving efficiency andfurther consolidating Boliden's position as one of Europe's leadingcopper producers," says Jan Johansson, President and CEO of Boliden.

The extensive mineralisation at the Aitik mine provides scope foran expansion from today's ore tonnage milled of 18 million tonnes to33 million tonnes per year. The expansion will boost the production ofcopper concentrate, enhancing productivity and lowering unit costs.The project will, moreover, include both a higher Gold recovery andthe potential extraction of molybdenum. The feasibility study is dueto be completed during the autumn of 2006 and production could beginwithin some three years of a positive investment decision.

The upgrading and expansion of the copper smelter in Harjavaltawill mainly take the form of investments in more efficient technologyand increased capacity at both the smelter and the tank house.Production capacity at the smelter in Harjavalta will increase from165,000 tonnes to 210,000 tonnes of anode copper, while production atthe tank house in Pori will increase from 126,000 to 153,000 tonnes ofcathode copper per year.

The greater part of the excess anode copper produced at theHarjavalta smelter will continue to be processed at the tank house inRonnskar. Standardisation of the copper anodes will also ensure a moreefficient and flexible production flow between Harjavalta andRonnskar, improving the integration.

To supply the increased copper production in Harjavalta, copperconcentrate will initially come from external mines. The finishedcopper will be sold to customers in Europe, Boliden's principalmarket.

Existing environmental permits are sufficient to cover the plannedcapacity expansion in Harjavalta. The expansion project is due tostart in January 2006 and the anticipated production launch is set forthe beginning of 2008.

Boliden is one of the world's leading mining and smeltingcompanies with operating facilities in Sweden, Finland, Norway andIreland. Boliden mainly produces copper, zinc and lead, as well asgold and silver. Other important operations include mineralexploration and metal recycling. The company has around 4,500employees and net sales of almost SEK 18 billion. Its shares arelisted on Stockholmsborsen's O-list and on the Toronto Stock Exchangein Canada.

www.boliden.com

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