Iluka Resources. Murray Basin Site Visit September 2013

Transcription

1 Iluka Resources Murray Basin Site Visit September 2013

2 Australian Operations Overview 2

3 Australian Operations Overview Western Australia Narngulu MSP processes Jacinth-Ambrosia concentrate 4 synthetic rutile kilns capacity (all currently idled) Tutunup South mine (currently idled) Additional deposits - Cataby, Eneabba, Tutunup, Yarloop Murray Basin, Victoria Major rutile and zircon production province Hamilton mineral separation plant One operating mine Woornack, Rownack, Pirro Basin economic life to Additional deposits - Balranald (DFS), Euston and others Eucla Basin, South Australia Globally significant zircon production source One operating mine, life 10 years+ 3 satellite deposits & 1 other under investigation Potential to extend economic life beyond

4 Australian Operations Safety Performance Stretch Target 8.4 Stretch Target

5 Strategy What new context and overall way of working approaches? Sustainable Learning How do we keep learning, adjusting and sustaining it? Information What information is needed? How can it be accessed? Who will prepare the information? Current State Where are we now? What is the situation? Work plan What, when, how and by whom needs to be done? Ground Rules What are the rules? Intent What are we trying to achieve? Tensions & Issues What are they? Relationships & Connections Who needs to be connected? How can we make them work better? Safe Production Leadership Our Game Plan Values ACE Leadership Achieving Extraordinary Performance Close Agreement Far Edge of Chaos Extraordinary Leadership Values Relationships Information Trust and Support Identity and Purpose Accountability Customer focus Mechanistic Management Close Certainty Far The Team: Senior H&S Specialists SPL Expectations Senior H&S Specialist Senior HR Advisor Delivered to all employees by GM Australian Operations GM Corporate Services Leaders Skills Package Direction Willingness Safe Production Plans 5 5

6 Australian Operations Integration 6

7 Eucla Basin, South Australia Jacinth-Ambrosia (J-A) - mine life Extendable post 2025 via satellite deposits 900m wide by 5 km long Flexible mine path Heavy Mineral grade approach Mining unit capability tph Wet concentrator capacity -1000tph Heavy mineral concentrate (HMC) production capability -120tph Accommodation village persons Water transported from borefield 32 km Fly-in-fly-out from Ceduna / Adelaide Diesel power station ( MW) 7 7

8 Mid West Operations, Western Australia Narngulu Processing Operations Located 427 km north of Perth Narngulu Mineral separation plant Plant 1 (all feed stocks) Plant 2 (dedicated J-A circuits) Largest zircon production facility globally 2 synthetic rutile kilns (currently idled) Total design capacity 230ktpa 75 FTE staff (Geraldton residential) Flexible for dual or single train operation 8

9 South West Operations, Western Australia North Capel separation mill 2 synthetic rutile kilns (currently idled) Finished product is trucked 35 km to Port ~ 300kt of iron concentrate being exported 160 Iluka employees Tutunup South mine (currently idled) 9

10 Murray Basin Overview 10

11 Murray Basin Murray Basin Production (kt) 2012 Zircon 142 Rutile 172 Ilmenite upgradeable 76 HMC

12 Northern Murray Basin Deposits, Victoria Kulwin commenced mining June 2009 /completed June 2012 Woornack, Rownack, and Pirro (WRP) mining commenced October 2011 Mine Length (km) Average width (m) Average ore thickness (m) Woornack Rownack Pirro

13 WRP - Successful Project Start-up Project delivered on schedule and within budget Project Summary Decommissioning commenced at Kulwin Feb 2012 Development capital $96 million (Budget $99m) Mining commenced (Woornack) Jan 2012 Processing commenced March 2012 Expected mine life To 1 st half 2015 Average annual HMC production Average annual production ~ 490ktpa ~ 170kt rutile / ~ 110kt zircon / ~ 80kt ilmenite* *Also produces significant volumes of additional less altered primary (WHIMS) ilmenite. Various options to commercialise some or all of this ilmenite are being explored. 13

14 WRP Scope of Operation Three WRP deposits to be mined, 6 pits in total Average dewatering rate of 18 ML/d (5 to 36ML/d) WRP Processing Facility & TSF Mining unit plant out of pit: 500tph Wet concentrator (WCP): 250tph HMC production: 60tph Water transported from GWM pipeline to site 7km Mains power HMC transported 95kms by road to Hopetoun rail facility B -Double 51-tonne trucks, approx. 30 per day HMC transported by rail from Hopetoun to Hamilton MSP Final product shipped from Portland and Geelong Workforce live locally or drive-in-drive-out Accommodation village accommodates 185 persons Full time employees at WRP (Iluka 66, Watpac 113) Land approx. 40% Iluka, 60% private landowners and State Government 14

15 WRP Site Looking South June 2012 Pirro Pit Woornack Pit Tailings storage facility WCP, office complex Mining unit plant & ROM Site access road Calder Highway 15

16 Operations - Mining Mine 3.5mt of ore and 8.8 million cubic metres of waste per annum Strip ratio Scrapers on waste removal and truck and digger fleet primarily on ore Planned area disturbed by mining and infrastructure 1,330ha (incl. 205ha of native vegetation) Length of all pits - 27km (currently mined 3km of pit- 2km in Pirro and 1km in Woornack) 16

17 Groundwater Dewatering and Infiltration 28% of mined material below water table 244 dewatering bores to be installed over life of mine Average bore depth 50m Average 25 bores active at any one time Groundwater hyper saline with ph of 3.8 Surplus water pumped to Pirro pit for infiltration 17

18 WRP Operations Blending Ore Pirro ore Woornack West Pirro ore Mining Unit Plant Woornack East Ore mined in discreet 100m long in pit blocks and sent to ROM as a specific parcel Single Pirro stockpile (lower HM, higher clay), two Woornack stockpiles (higher HM, lower clay) Ore loaded into mining unit hopper by front end loader Loader can blend from one or more discrete stockpiles to provide required feed grade 18

19 Operations - Processing MU18- Mining Unit Plant ROM Feed Hopper Apron Feeder Grizzly Drum Scrubber Trommel Wet Concentrator Plant Mining Contractor Workshop HMC stocks WHIMS Building WCP Building PCP Building MU10 Thickener 19

20 Mining and Concentrating Process Tailings Storage Facility (TSF) Non Magnetic Heavy Mineral Concentrate (HMC) 20

21 Murray Basin Indicative Cash Costs of Production Overheads 10% Separation 16% Mining and Concentrating 52% HMC Transport 22% 2012 cash costs: $148m (2 mining operations; higher production - $541/t Z/R unit cash costs) 2011 cash cost: $240m ($483/t unit cash costs of production) 21

22 Murray Basin Mineral Separation Plant - Hamilton 22

23 Hamilton MSP Scope of Operation Plant designed for 30 year life Plant capacity 700 ktpa Production - zircon ~220 ktpa, rutile ~ 230 ktpa, saleable ilmenite ~100 ktpa 185 ML per annum water (reclaimed water rather than potable) 90 employees 23

24 Hamilton MSP Scope of Operation HMC delivered from northern Murray Basin via train Finished product trucked to Portland for export with dedicated truck fleet Capacity to process J-A as a blend with Murray Basin HMC 160kt of finished product storage in Portland 30kt of finished product storage at the MSP Hamilton 24

25 Operations Separation Hamilton MSP is divided into seven circuits Gravity, electrostatic and magnetic separations repeated throughout to achieve quality targets Finished products from Hamilton MSP: zircon premium zircon standard rutile 95 rutile 92 ilmenite tin 25

26 MSP Separation Process MSP separates minerals based on differences in conductivity and magnetism 26

27 Finished Products Finished products from Hamilton MSP: zircon premium zircon standard rutile 95 rutile 92 ilmenite tin 27

28 Murray Basin Exploration 28

29 2013 Victorian Exploration Australian HM exploration budget ~$8M Approximately 10% to be spent in Murray and Gippsland basins >90% greenfields drilling Purchase of large tenement package along western basin margin (area of little previous HM exploration) Evaluation of WIM HM resources in Douglas region Review of all MB tenements for new commodities 29

30 Rehabilitation 30

31 Rehabilitation All rehabilitation activities guided by detailed Closure Plans - clearly outline standard of rehabilitation to be achieved - based on WA Department of Mines & Petroleum Closure Plan Guidelines (no equivalent in Victoria) Douglas rehabilitation works - 81 hectares to be returned to pasture - 90% of overburden works complete Echo rehabilitation works hectares to be returned to pasture - all earthworks complete, all crops planted and germinating well Kulwin rehabilitation works - 80 hectares to be returned to pasture, 8 hectares to native vegetation - 90% of overburden, 80% sub soil, 20% top soil completed 31

32 Iluka Resources Limited For more information, contact: Robert Porter, General Manager Investor Relations / +61 (0)