Iluka Resources Limited

Transcription

1 Iluka Resources Limited MINEX Conference Alison Morley Half Year Results Country Manager, Kazakhstan David Robb, Managing Director Alan Tate, Chief Financial Officer August March

2 Company Overview Major mineral sands industry participant ~$3 billion market capitalisation Largest global zircon producer Significant producer of high grade titanium dioxide feedstocks Strong financial position Robust balance sheet ~$600 million in undrawn debt facilities Low capital expenditure while still advancing development options Sustainability credentials Proven environmental and rehabilitation track record World class health and safety performance Stakeholder relationships that are mutually beneficial over time 60 years experience in mineral sands Current operations Australia and United States Project pipeline Australia, Sri Lanka and Brazil Exploration program Central Asia, Africa, Europe, Americas, Australia Management attributes Track record of capital efficient investment Preparedness to exercise production flexibility to protect margins Prudent risk taking Innovation and technology Production efficiencies; recoveries; product quality; product development Ongoing trials of new products Non conventional resource conversion focus 2

3 Global Presence 3

4 Product Lifecycle Explore Mine Process Market Rehabilitate Exploration to deliver high value growth opportunities Dry mining techniques feed ore into mining unit plant Plant separates fractions from ore to produce heavy mineral concentrate Electrostatic and electromagnetic separation produces final products zircon, rutile and ilmenite Kilns upgrade ilmenite to synthetic rutile Final product is shipped to international markets Areas mined rehabilitated to pre-mining state 4

5 Zircon Attributes and Applications Ceramics Opacity (whiteness) Water, chemical and abrasion resistant Floor and wall tiles Sanitary ware Table ware Refractory and Foundry Heat resistant Non-reactive Steel and glass manufacturing Precision metal casting Zirconium Metal Low thermal neutron absorption Corrosion resistant Nuclear reactor cores and fuel rods Heat exchangers Zirconia and Zirconium Chemicals Many unique properties Electronics Catalysts Fibre optics Catalytic converters 5

6 Titanium Dioxide Attributes and Applications Pigment Opacity (whiteness) UV resistant Non-toxic and inert Titanium Metal High strength to weight ratio Corrosion resistant Welding Flux Agent Corrosion resistant Paints and coatings Paper Inks Packaging Aircraft engines and frames Defence armaments Chemical & desalination plants Medical applications Sporting equipment Steel construction Ship building Nanomaterials Many unique properties Dye-sensitised solar cells Water purification Cancer treatments Noise absorption 6

7 EXPLORATION 7

8 International Exploration Program Consistent and substantial investment ~ $20 million per annum Capitalise on internal geological expertise predominantly greenfields Increasing international focus Central Asia, Americas, Africa and Europe 8

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12 Tobol R. Kostenay Rudnyy Kushmurun Lisakovsk Amanquaraguay 12

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16 Oligocene Eocene Cretaceous 16

17 Beach Shoal Oligocene Eocene Cretaceous 17

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19 OPERATIONS 19

20 Australian and United States Operations Perth Basin (Western Australia) Four synthetic rutile kilns, currently one operating mine Separation plant Potential deposits at Cataby, Eneabba, Tutunup Corporate HQ Eucla Basin (South Australia) Globally significant zircon production source One operating mine, with life beyond ten years Three satellite deposits and one other under investigation Potential to extend economic life beyond 2025 Murray Basin (Victoria/New South Wales) Major rutile and zircon production province Separation plant, currently one operating mine (Vic) Future deposits West Balranald, Nepean and Euston (NSW) Basin economic life potentially beyond 2023 Virginia (United States) Separation plant, currently two operating mines Ilmenite serves domestic US market; zircon 20

21 Project Development Balranald (Murray Basin, Australia) High grade and rich assemblage Material source of global supply (especially rutile) Definitive feasibility study currently underway Cataby (Perth Basin, Australia) High quality chloride ilmenite (suitable synthetic rutile feed source) Pre-execute planning underway Start date flexibility Eucla Basin Satellite Deposits (Eucla Basin, Australia) Three satellite deposits and one other under investigation Large chloride ilmenite deposits with significant associated zircon production stream Pre-feasibility stage Puttalam (Sri Lanka) Large, long-life scalable sulphate ilmenite deposit High grade for style of deposit Scoping study to commence in

22 SUSTAINABILITY 22

23 Safety Performance Iluka Injury Frequency Rates Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Lost Time Injury Frequency Rate (LTIFR) Total Recordable Injury Frequency Rate (TRIFR) Safe Production Leadership programme launched in 2011 Proactivity, Beyond Compliance programme launched in % reduction in TRIFR since 2011 (incidence of any injury) - 71% reduction in LTIFR since 2011 (incidence of injury resulting in absence) 23

24 Rehabilitation Substantial financial and technical resources allocated to environmental management Highly skilled personnel wet and dry climate rehabilitation All rehabilitation activities guided by detailed closure plans Fully integrated into long term schedule of operation (exploration; mining; rehabilitation) Commitment to environmental management activities beyond mine rehabilitation 24

25 Rehabilitation example Douglas, Victoria Dec 2005 Pre-mining Feb Topsoil stripping July Sheep grazing pasture Feb OB backfill 25

26 Social Responsibility Iluka seeks to employ local people and suppliers first Transparent communication with stakeholders and communities Training and development of local personnel 2013 Economic Contribution Australia* Iluka contributed to 4,346 jobs (directly and indirectly) Iluka contributed to $994 million in total value (direct and indirect contributions) Approximately $730 thousand in partnerships and sponsorships * Data from Ernst & Young based on 2011 Census 26

27 Iluka Resources Limited For more information contact: 2014 Half Year Results Alison Morley, Country Manager, Kazakhstan David Robb, Managing Director Alan Tate, Chief Financial Officer 22 August