Boliden launches new nickel strategy

Boliden will launch an independent nickel smelting business, buying nickel
concentrates from external suppliers and selling nickel matte to nickel
refineries. The annual production is estimated to remain at 25,000 tonnes of
nickel in matte.
The combined copper and nickel smelter, Boliden Harjavalta in Finland, has been
smelting nickel concentrates since the mid 1950’s. For several years Boliden
Harjavalta has been smelting nickel concentrates owned by external parties for a
fee – a system known as tolling. In 2013, approximately 250,000 tonnes of nickel
concentrates were processed into nickel matte, containing about 25,000 tonnes of
nickel, for further treatment at external nickel refineries. In connection with
the current tolling contract expiring, Boliden will change its nickel business
model to more resemble the model for the Group’s copper and zinc business.
Instead of processing nickel concentrates for customers Boliden will buy
concentrates from a variety of mines and sell the nickel matte to nickel
refineries.

The global market for nickel is approximately 2 million tonnes per annum and the
Chinese stainless steel producers are the most important buyers. Global smelter
capacity reductions and new nickel mines coming on stream are expected to result
in increased demand for nickel smelting.

“The timing is good and the change of business model gives us an exciting
opportunity to start sourcing concentrates and supplying the growing market. As
the only nickel smelter in Western Europe, Boliden Harjavalta is strategically
positioned, with a short distance to a port and the lowest sulphur dioxide
emissions per tonne of nickel of any nickel smelter in the world”, says Kerstin
Konradsson, President Boliden Smelters.


For further information, please contact:

Marcela Sylvander, Group Communications, +46 8 610 1630, +46 733 244551
Sophie Arnius, Investor Relations, +46 8 6101523, +46 70 5908072


Boliden is a metals company with a commitment to sustainable development. Our
roots are Nordic, but our business is global. The company’s core competence is
within the fields of exploration, mining, smelting and metals recycling. Boliden
has a total of approximately 4,800 employees and a turnover of SEK 34 billion.
Its share is listed on NASDAQ OMX Stockholm, segment Large Cap.
www.boliden.com