Sustainable use of Earth’s natural resources · electrorefining Smelting , Preheating, Steel Belt...

IR presentation

Q1-Q2 2018

Sustainable use of Earth’s natural resources

© Outotec – All rights reserved

Safety performance

IR presentation2 Q1-Q2 2018

2.1 Lost Time Incidents per million working hours (LTIR), includes Outotec employees and

contractors working under Outotec’s supervision.


Outotec at a glance

Q1-Q2 2018 IR presentation3

Key figures

Financial performance

Geographic coverage

Business overview

740

1,000

1,218

878970

1,386

2,087

1,912

1,403

1,2011,058

1,139

-4

-2

0

2

4

6

8

10

12

0

400

800

1200

1600

2000

2400

2006 *) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales Operating profit margin

*) Combined basis 2010 onwards aEBIT, excl. restructuring and acquisition-related

costs as well as purchase price allocation amortizations.

EUR million %

FY 2017 FY 2016

Net Sales, EUR million 1,139 1,058

Share of services in sales, % 42 42

Gross Margin, % 24 22

Adjusted EBIT, % (excl. one-time items) 3 -2

Gearing, % -1 -1

Equity ratio, % 41 40

Balance sheet total, EUR million 1,346 1,427

• Global leader in optimized solutions for minerals and metals

processing, water treatment, and waste-to-energy

• Minimizing the plant’s lifetime cost by maximising recovery

and utilizing less energy and water

• Deliveries in past 150+ years to more than 80 countries

• HQ in Finland, some 4,150 employees (2017) in 36

countries

Outotec R&D, sales and service centers

Outotec manufacturing/assembly


Our business on the value chain from ore to metal

Superior technologies and customer service

Minerals processing

for all ore types

• Comminution

• Flotation

• Dewatering

• Concentrator plants

Metals refining

• Pyro- and hydrometallurgy

• Ferrous metals, ferroalloys

• Light metals

• Acid and off-gas treatment

• Effluent treatment

Optimized lifecycle services and digital solutions

From ore

body

To metal

IR presentation4

Exploration Development ExtractionMaterials handling Comminution Separation Refining

MetallurgyProcessing

OutotecOutotec

Q1-Q2 2018


5

Minerals Processing segment’s offeringOutotec #1-3 globally in minerals processing with its complete portfolio of leading process

solutions and services, as well as full plant delivery capability

Water

Technology

FLSmidth, CITIC,

Metso,

ThyssenKrupp

FLSmidth, Metso,

BGRIMM, Tenova,

Woodgrove

FLSmidth, Tenova-

Delcor, WesTech

Aqseptence-

Diemme, Metso,

Andritz, FLSmidth

Thermo Fisher,

BGRIMM, Blue Cube

APC: Metso,

Woodgrove, SGS

Minerals

DCS: Major DCS

suppliers

FLSmidth, Golder,

GR Engineering,

AMC

Customers own

maintenance,

Major tech.

suppliers, Local

companies

Thickening AnalyzersGrinding Flotation AutomationFiltering ServicesTailings management

1,100 grinding

mills delivered,

strong in S/M

size mills and

process

technology

10,000 flotation

units delivered

since 1960s,big

cell technology

references,

automation

1,800 thickeners

delivered, global

project

execution

capability,

feedwell design

Full analyser

portfolio, lowest

min detection

limits, only Xray

used

Unique

combination of

automation &

analysers,

important for risk

management

Full process

and equipment

portfolio,

effluent

treatment and

backfill plants

Prop equipment

and total

process

knowhow,

global service

network

3,500 filters

delivered, most

efficient

concentrate

filtering, proven

performance

Competition fragmented, a number of players competing in part of the portfolio

Q1-Q2 2018 IR presentation



Outotec is #1-3 globally in metal refining, selected niches in energy, opportunistic approach in water

Metals, Energy & Water segment’s offering

Ferrous metals Sulfuric acid/Off-

gas/Roasting

Fives, FLSmidth,

Metso,

Aqseptence-

Diemme

Kobelco, Metso,

Primetals, Jemeco

SMS Siemag,

Tenova, Jemeco

GEA Bischoff,

MECS

Alumina,

AluminumBase metals (Cu, Ni,

Zn, Au, Ag, PGM)Ferroalloys

Glencore

Technology, Tenova

Strong in CFB

Aluminium

Calcination and

HOT Tube

Digestion

Strong in traveling

grate technology,

some100 iron ore

pelletizing and

over 300 sintering

plants

650 acid plants

and 270 non-

ferrous roasting

plants

Strong in Cu

smelting, anode

casting, SX and Zn

leaching, strong in

Ni smelting and

EW

Energy Water

Alumina calciner,

Green anode plants,

Rod Shop

Sintering, Pelletizing,

Direct Smelting

Sulfuric acid plant,

Roasting

Smelting, Converting,

Leaching, SX/EW,

electrorefining

Smelting,

Preheating, Steel

Belt Sintering

Waste-to-energy,

Sludge incineration,

Oil shale processing

Industrial water

treatment, municipal

water systems

Competition fragmented, a number of players competing in part of the portfolio

Services

Advisory, maintenance,

operations & remote

services, upgrades

Valmet, Andritz,

Babcock&WilcoxVeolia, GE Water,

Suez

FLSmidth, Metso,

major tech suppliers,

locals and customers

Strong in Ferro

Chrome, 20

pelletizing and

sinter plants and

9 smelters for

ferroalloys

Versatile waste-

to-energy

solution, over

250 materials

used

Effluent

treatment plants,

backfill plants,

water recycling

Shutdown

services, best

suited to provide

services for own

technologies


Long-term customer relationships with the industry’s top companies


In history, top ten customers have accounted for some 35% of sales.

Major global mining companiesLocal mining and metallurgical

companies in emerging regionsIntermediate sized companies

Selected reference customers of Outotec

http://www.first-quantum.com/Home/default.aspx

http://www.maaden.com.sa/en


Emission trading schemes, increasing

regulation and social license to operate.

Mining companies’ key challenges: energy, water, and productivity improvement

IR presentation

Deep knowledge of processing all types of ores

to achieve high yields and optimize plant

performance; Lifecycle services to further

improve productivity

Clean technologies to avoid emissions

Technologies for producing metals from

secondary raw materials and tailings

Energy-efficient process technologies, gas

handling and heat recovery systems

Water management solutions for significant

reduction in freshwater consumption through

recycling and purification of wastewater

Water scarcity is a concern and cost factor,

concerns with tailings ponds at mine sites.

8

Energy

Water

Productivity improvement

Making metals is energy intensive, energy

contributes largely to CO2 emissions.

More recycling is needed.

Outotec’s solutions

Ores are more complex and grades are

declining.

Q1-Q2 2018


Offering industry’s most sustainable processing technologies


Environmental

Goods and

Services equals

to 88% of

orders (2017)

5th most

sustainable

company in

Global 100

• In 2017, customers generated 6.2 million

tonnes less of CO2-e when using Outotec’s

technologies compared to annual baselines.

• From Outotec Ferrochrome Process alone the

CO2-e emissions avoided are 2.9 million

tonnes.

• 88% of order intake represent Environmental

Goods and Services (OECD criteria).


Share of sales by end product



Demand remains supportive for the mining industry

More investments expected in

short term. Long term the

market will be oversupplied

by China

-1 500

-1 000

-500

0

500

1 000

1 500

2021202020192018201720162015201420132012

Aluminium

-800

-600

-400

-200

0

200

400

2021202020192018201720162015201420132012

Zinc

-200

0

200

400

600

2018201720162015201420132012 202120202019

-100

-50

0

50

100

150

200

250

2015201420132012 202120202019201820172016

Copper Nickel

-20

0

20

40

60

80

100

120

2021202020192018201720162015201420132012

Iron ore

Metals Balance

Deficit

Surplus Surplus

Deficit

Surplus

Deficit

Surplus

Deficit

Surplus

Need for some new and

replacement investment

The price still needs to be

more supportive before

new investment

High oversupply

Outside China, the market

remains in deficit

Deficit

0% 4% 5% 6% 7% 8% 9%-1% 1% 2% 3%

Potash

Stainless steel

Gold

Cobalt

Lithium

Steam coal

Phosphates

Steel

Copper

Aluminium

Ferrochrome

Capital goods

OtherAgriculture

Consumer goods

Energy

Transport

Infrastructure

Construction

% change in demand 2017-18

Expected demand change and commodity

driver 2017-2018

11

Source: Thomson Reuters, HSBC, CRU



Production outlook for battery metals


0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

2016 2017 2018 2022

+17%

20202019 2021

Tonnes LCE

Source: Macquarie Research

Lithium supply growth

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

110 000

120 000

130 000

140 000

2016 2017 2018 2022

+6%

20202019 2021

Cobalt supply growth

0

500

1 000

1 500

2 000

2 500

2016 2017 2018 2022

+4%

20202019 2021

Nickel supply growth

Tonnes ‘000 tonnes


Capex investments growth seen in most metals, copper and gold leading

Q1-Q2 201813

0

10

20

30

40

50

60

70

80

90

100

110

120

130

20112009 20122010 2013 2014 2015 2016 2017 2018 2019 2020

+8%

Total capex investments for Copper, Gold, Iron ore,

Lead, Nickel and Zinc (mine only), bn USD)

Sustaining

Expansion

Source: Woodmac, February 2018

bn USD

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

202020192018201720162015201420132012201120102009

Iron Ore

Copper

Gold

Lead

Nickel

Zinc

Expansion capex investments by commodity: Copper

and Gold expected to lead the growth

bn USD

IR presentation


Expansion investments by region

14

0

5 000

10 000

15 000

20 000

25 000

30 000

20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020

North America

Oceania

Africa

Europe

Asia

Russia and the Caspian

Middle East

Latin America

Copper

Source: February 2018, Woodmac

0

5 000

10 000

15 000

20 000

20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020

0

1 000

2 000

3 000

4 000

5 000

6 000

20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020

Gold

Zinc Nickel

‘000 USD ‘000 USD

‘000 USD ‘000 USD



Copper and gold investments by company

15

Cumulative investments over 3 years 2018-2020

4544934975855916256446817067198158198328691 050

1 6101 935

2 342

3 336

8 477

Sandspring

Resources

Euromax

Resources

Midas

Gold

St

Augustine

Gold &

Copper

Government

of

Venezuela

Agnico-

Eagle

Mines

IamgoldVista Gold

Corp.

Munduro

Mining

Allied

Nevada

Gold

New GoldKinross

Gold

GoldcorpSeabridge

Gold

Barrick

Gold

Corporation

Argonaut

Gold

Eldorado

Gold Corp

Lundin

Gold

Falco

Resources

Pallavicino

Holdings

7988369109651 0251 0481 0731 2691 2851 330

1 4691 4971 7441 853

2 658

3 205

4 110

4 5484 891

6 058

Anglo

American

Rio TintoBHP

Billiton

Hudbay

Minerals

AntofagastaCodelco Nevada

Copper

Turquoise

Hill

Resources

Pacific

Booker

Minerals

MinsurNovaGold

Resources

Russian

Copper

Company

First

Quantum

Minerals

Freeport-

McMoRan

Erdenes

Oyu Tolgoi

KGHM

Polska

Miedz

Western

Copper

and Gold

CRCC

Tongguan

Southern

Copper

(ex SPCC)

Teck

Copper: Top 20 producers account for aprox. 70% of total investments

Gold: Top 20 producers account for 70% of total investments

Source: February 2018, WoodmacQ1-Q2 2018 IR presentation


Zinc and nickel investments for 2018-2020

16

60607895100102131149260266281

339375400402508

677765

1 629

2 493

Noront

Resources

IMX GME

Resources

Brazilian

Nickel

SLN - La

Societe

Le Nickel

Cassini

Resources

Pengxin

Group

Western

Areas Ltd

GlencoreAneka

Tambang

PolymetTsingshan

Group

ErametHorizonte

Minerals

Oremine

Madencilik

Wellgreen

Platinum

Clean TeQBHP

Billiton

NornickelVale

Nickel: Top 20 producers account for 95% of total investments

267271274288291292295306309338349366374

532552656

787

1 037

1 281

1 989

Ansan

Wikfs

Hadramaut

Karoun

Dez Dasht

Nexa

Resources

Silver Bull

Resources

Tau Ken

Samruk

Vedanta

Resources

Ironbark

Zinc

GecaminesSSR

Mining

Teck Minorbis

- Grupo

Mexico

GlencoreChesapeake

Gold

MBC

Resources

MMG

Limited

Ormonde

Mining

BMC

Minerals

Yunnan

Metallurgical

Group

Chihong

Zinc &

Germanium

Terramin

Zinc: Top 20 producers account for 75% of total investments

Refers to

project

Metates: Zinc

not primary

commodity,

but Gold

Source: February 2018, WoodmacQ1-Q2 2018 IR presentation


We will grow our service business profitably

IR presentation17

Increased customer share

Improve efficiency and profitability

Build service organization

Services that

improve customers’

productivity and

reduce their total

cost of ownership

Annual

average

service sales

growth over

10%

Q1-Q2 2018


IR presentation18

High

service

potential

1,100 grinding mills

10,000 flotation units

3,500 filters 650 sulfuric acid plants

130 non-ferrous smelters

80 full deposit

stripping machines

Most of the service growth will come from own installed base

Q1-Q2 2018


Digitalization is increasingly embedded into everything we do

Our elements: Value:

Asset performance and reliability

Process productivity

Process optimization

Service effectiveness and efficiency

Efficient internal processes

Smart connected equipment

Smart processes

Smart sites

Smart services

Smart ways of working

IR presentation19 Q1-Q2 2018


How will we achieve 10% adjusted EBIT by 2020


2017: 2.8% aEBIT

2020: 10%Annual average service sales

growth over 10%

Grow volumes while containing

fixed cost

Improve margins through product

competitiveness and project

excellence

Margins

Volumes/fixed cost

Service


Key financials

Q1-Q2 2018



Energy

- Biomass project

- Decisions slowMetals+

- Copper, gold,

iron, nickel, tin

- Sulfuric acid

Demand

- Brownfield

investments

-Modernizations

- Services

Strong growth

Both

Capex &

Services

Market activity continued positive in H1



Strong growth in orders, service sales impacted by supply issues


MEUR

MEUR

MEUR

MEUR


Q2: Order intake up 21%, service orders increased by 18%


Americas 24 (32) %

156 193

131154

0

100

200

300

400

Q2/2017 Q2/2018

Capex orders Service orders

MEW

order

M€

EMEA 51 (50) % APAC 25 (17) %

Order intake QoQ

TIN

Technology for a tin smelter for

TIMAH, Indonesia

ACID

Technology for Boliden’s sulfuric

acid plant, Sweden

BASE

METALS

• Minerals processing equipment

to Kazakhstan ~15 M€

• Minerals processing equipment

to Russia ~24 M€

ENERGY

Biomass power plant to Turkey

~ 55 M€

MP

order


Solid order backlog


EUR million

Roughly

EUR 500 million

to be delivered in

2018

371

235168

493418 384

299

475

260

120 139106

202

111

419350

269357344

532

803

327

425

736

452471 491

366

230

426

210

380

266322

260

395

268267170

281274283

318 286

234

366334

347

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

Q3

/200

6

Q4

/200

6

Q1

/200

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Q2

/200

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Q2

/201

8

Order backlog at the end of the period Share of unannounced orders Order intake by quarter

EUR 1,085

million, some

24% services


Sales grew 17%, profitability improving


EUR millionQ2

2018

Q2

2017

Q1-Q2

2018

Q1-Q2

2017

Change,

%In comparable

currency, %

Sales 331 266 618 529 17 23

Service sales 109 110 212 209 2 9

Share of services in sales, % 33 41 34 40

Gross margin, % 22 22 22 23

Adjusted EBIT*

8 0 15 1

Adjusted EBIT*, % 2 0 2 0

- Restructuring and acquisition-related costs -9 0 -9 0

- PPA amortization -2 -2 -3 -4

EBIT -3 -1 2 -3

EBIT, % -1 -1 0 -0

Result for the period -4 -3 -2 -6

Unrealized and realized gains related to valuation

of FX forward agreements -3 3 -2 5

* Excl. restructuring and acquisition-related costs as well as PPA amortizations.


Higher volume and lower fixed costs improved profitability


15

1

Fixed Costs aEBIT Q1-Q2/2018aEBIT Q1-Q2/2017 Margin and FXVolume

Negative margin impacts in 2018:

• Sales mix, lower service share

• GM erosion in some projects


Continued good progress in Minerals Processing


Sales and adjusted EBIT development by quarter

Minerals Processing

EUR million

Q1-Q2

2018

Q1-Q2

2017

Change,

%

In comp.

currency,

%

Order intake 346 323 7 15

Sales 353 319 10 18

Service sales 150 143 4 13

Adjusted EBIT*) 33 26

Adjusted EBIT*), % 9 8

Unrealized and realized

gains/losses related to

valuation of FX forward

agreements

-1 1

* Excl. restructuring and acquisition-related costs as well as PPA amortizations

0%

5%

10%

15%

20%

0

50

100

150

200

250

300

350

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Q2/2

016

Q3/2

016

Q4/2

016

Q1/2

017

Q2/2

017

Q3/2

017

Q4/2

017

Q1/2

018

Q2/2

018

Sales aEBIT*, %


Order intake and sales developed well, increased provisionsimpacted profitability in Metals, Energy & Water


Metals, Energy & Water

EUR million

Q1-Q2

2018

Q1-Q2

2017

Change,

%

In comp.

currency,

%

Order intake 335 282 19 22

Sales 266 210 27 30

Service sales 63 66 -5 1

Adjusted EBIT*) -15 -22

Adjusted EBIT*), % -6 -10

Unrealized and realized

gains/losses related to

valuation of FX forward

agreements

-2 4

* Excl. restructuring and acquisition-related costs as well as PPA amortizations

Sales and adjusted EBIT development by quarter

-40%

-30%

-20%

-10%

0%

10%

20%

0

50

100

150

200

250

300

350

400

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

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013

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013

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013

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013

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014

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014

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014

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014

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015

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015

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015

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015

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016

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016

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016

Q4/2

016

Q1/2

017

Q2/2

017

Q3/2

017

Q4/2

017

Q1/2

018

Q2/2

018

Sales aEBIT*, %



Strong cashflow due to new orders and receivables


Improved net working capital and gearing


Q2

2018

Q2

2017

Net interest-bearing debt*, EUR million -26 57

Gearing*, % -6 12

Equity-to-assets ratio*, % 39 40

Return on investment, %, LTM 4 -8

Return on equity, %, LTM 1 -12

Net working capital at the end of the period, EUR million -43 27

Advances received 196 196

Equity, EUR million 447 469

Balance sheet total, EUR million 1,333 1, 376

* If the hybrid bond were treated as a liability, the net interest-bearing debt EUR 123.6 million, gearing 41.6%, and the equity-to-

assets ratio 26.1% on June 30, 2018 (June 30, 2017: EUR 206.8 million, 64.9% and 27.0% respectively).


Market outlook positive


Service opportunities in

all categories

- Asset walks

- Expert services

Prospects in several metals

and energy- Copper, gold, aluminum, zinc- Sulfuric acid - Biomass and

waste-to-energy

Positive market and complex

ores offer attractive

opportunities- New technology

- Tailings reprocessing

New uses suchas EVs supportlong-term view

- Copper- Lithium- Cobalt- Nickel


Financial guidance for 2018 reiterated


The guidance for 2018 is based on the current order

backlog as well as expected order intake.

• Sales are expected to be approx. EUR 1.2 – 1.3 billion, and

• Adjusted EBIT* is expected to be approx. 5 – 7%

* Excluding restructuring and acquisition-related costs, as well as purchase price allocation amortizations.


Our focus areas 2018 – towards profitable growth!


Customer focus Service businessProduct

competitivenessProject excellence Our people


Simplifying our organization and way of working –progressing as planned

• Simplified structure and streamlined global functions (July 1)

• Reduction of 200 persons globally, will continue in H2

• Simplifying business processes, will continue in H2

• Some non-profitable operations discontinued

• EUR 25 million savings, full impact end of 2019

• Restructuring costs approximately EUR 12 million

• Q2 2018: Restructuring costs EUR 9 million



POC and cash flow profile example


0

20

40

60

80

100

120

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

POC Cumulative cashflow

MEUR

Month

Order backlog YE 2017: Cumulative

project POC vs total contract value

0% 100%

Percentage of Completion, %Timing of large project

completions, and

possible provision

releases, affects

quarterly earnings.

Advance

payment

~10-30%

NOTE: The figures are illustrative and vary project by project

Timing of large project completions affects quarterly earnings


-200,00

0,00

200,00

400,00

600,00

800,00

1000,00

0,00

100,00

200,00

300,00

400,00

500,00

600,00

700,00

800,00

900,00

1000,00

2015 2016 2017 2018 2019 2020 2021 2022

Balance sheet development (conceptual)

Interest bearing debt Other equity Equity (hybrid) Cash

Improving profitability and liquidity


Better profitability

increasing equity

2017-2022

Hybrid bond

repayment from

liquidity reservesImproving liquidity

in the upcycle

• Investments in fixed

assets to stay below

depreciation level

• Net working capital

affected by:

- Growing service

business

- Advances received

• Effect of net working

capital to liquidity not as

prominent as in previous

cycle due to higher share

of service business

Balance sheet development (conceptual)


Our long-term financing is secured for thenext three years


Long-term debt repayment profile (conceptual)

0

50

100

150

200

250

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20

MEUR

EIB R&D loan

Senior unsecured bond

Other L/T interest bearing debt


Customer solutions



Service offering

Using our strong metallurgical and technology expertise to improve customers’ productivity

IR presentation41

Operations

Services

Advisory

Services

Maintenance

ServicesRemote

Services

Training

Services

Spare and

Wear PartsUpgrades

ProductivityAvailability Total cost of

operations

Environmental

& safety

performance

Metallurgical

capability

Technology

capability

+

Q1-Q2 2018


We enabled significant improvement in silver recovery for Met Mex Peñoles in Mexico

42

Met Mex Peñoles zinc plant

with silver production

• Peñoles is one of the biggest silver

producer in the world

• A newly commercialized Pure

Jarosite process will improve

metals (Ag, Pb) recovery typically

by 20%, silver being economically

most important

• This project will be combined with

the expansion project and

delivered in 2017-2018

IR presentation

Direct Leaching expansion project • Pure Jarosite process including

• Process equipment (reactors, thickeners, filters, etc.)

• Erection, commissioning and start-up support & site services

• Comprehensive e-catalogue of spare parts

• Roaster feed pre-treatment system

Q1-Q2 2018


43 IR presentation

Our solution provides huge savings to the customer with better zinc and lead recovery

Challenges

• In conventional

jarosite process

roughly 20% of silver

lost to iron residue

• In addition, losses of

lead and zinc

• Problem especially for

zinc producers with

high silver content

concentrates

Solution

• Outotec’s Pure

Jarosite process

avoids almost all

losses of silver,

lead and zinc

Benefits

• Increased overall

silver zinc and lead

recovery

• Value to customer:

tens of millions USD

annually with short

payment time

• Relatively simple and

cost-effective

modifications at the

plant

Q1-Q2 2018


Monetizing substantial lithium mineral depositsat AMG Mineração, Brazil

44

AMG

Advanced Metallurgical Group N.V.

• Produces aluminum master alloys and

powders, titanium alloys and coatings,

ferrovanadium, natural graphite,

chromium metal, antimony, tantalum,

niobium and silicon metal

AMG Mineracão S.A. (Brazil):

• Produces tantalum and tin concentrates

• In 2018 production for lithium carrying

spodumene concentrate

IR presentation

Turnkey delivery of spodumene concentrator plant

• Engineering, procurement and construction (EPC) of

the plant

• Proprietary equipment; grinding mill, high intensity

magnetic separators, slurry conditioners, flotation

cells, thickeners, PF filter, sophisticated process

control with on-line automatic slurry analyzers

Q1-Q2 2018


Substantial lithium mineral deposits residing in tailings ponds and stockpiles

45

What are tailings?

• Tailings are the materials left over after

the process of separating the valuable

minerals from the uneconomic fraction

of an ore.

• The amount of tailings can be large,

ranging from 90–98% in valuable

minerals to 20–50% with less valuable

minerals.

What are the applications for

lithium?

• Lithium mineral concentrate is used in

applications such as glass and ceramics.

• A high growth market for lithium

chemicals is in re-chargeable batteries,

and the growth is accelerating with the

demand for electric vehicles, grid battery

storages and personal electronic

devices.

IR presentationQ1-Q2 2018


Background to the project at the Mibra mine

46

• Tailings from AMG’s tantalum plant

are collected to a tailings pond

• New tailings are continuously

generated from the operations

• The tailings contain valuable lithium

• For close to 10 years AMG has

studied the utilization of lithium

carrying tailings, and Outotec has

been involved since 2010

Lithium resource map at the Mibra mine



Finding the right solution at the Mibra mine

47

• In 2014-2016 Outotec completed

conceptual, pre-feasibility and definitive

feasibility studies for lithium carrying

spodumene production

• October, 2016: AMG and Outotec agreed

to build a 90 kilo-tonnes per annum

spodumene plant on EPC turnkey basis

• Guarantees for process performance,

project budget and schedule

• Order value exceeds EUR 35 million,

commissioning starting in May 2018



Our local team supports plant commissioning and operation with sophisticated process control

48 IR presentation

Operational support and services

by Outotec’s local team in Brazil

The plant has sophisticated process

control with high-end analyzers.

AGM has the possibility to remote advisor

support for operation and maintenance by

Outotec global technology centers.

Q1-Q2 2018


Benefits of our solution for the customer

49

Monetizing the substantial lithium mineral

deposits currently residing in tailings

with low production cost

Fast-track access with our EPC delivery

to the growing lithium market

Tailings area reduced for future operation,

reclaimed water back to the process

reducing fresh water need



Top 10 shareholders end of Q2, nominee registered 44%


Sustainable use of Earth’s natural resources · electrorefining Smelting , Preheating, Steel Belt...

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