Iluka Resources Limited · ASX:ILU
Iluka Resources — Technical Presentation (September 2010)
34 slides from Iluka Resources's technical presentation, Sep 29, 2010
Slide 1: Iluka Resources Limited – Jacinth–Ambrosia Investment Market Site Visit
Iluka Resources Limited Jacinth–Ambrosia Investment Market Site Visit 29 September 2010 Operation Information
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This presentation contains forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of minerals. Forward-looking statements include those containing such words as anticipate, estimates,
Slide 3: Jacinth-Ambrosia Location
Jacinth-Ambrosia Location 3
Slide 4: Summary Physical Characteristics
Summary Physical Characteristics Jacinth – Ambrosia (as at 31 December 2009) Mineral Resources 9.5 million tonnes of HM HM Reserve 6.4 million tonnes of HM Avg Reserve HM Grade 6.5% Avg HM Assemblage 50% zircon 28% ilmenite 5% rutile Development Capex $390 million (original budget $420 million) Expe
Slide 5: Assemblage Characteristics
Assemblage Characteristics Globally Highest Zircon Assemblage Mineral Sands Deposit 3.00 Iluka Jacinth-Ambrosia 2.50 2.00 Zircon to titanium tioxide ratio 1.50 1.00 Namakw a A ustralian Zircon Gunson Resources Iluka Mid West Iluka V irginia Iluka Murray Basin 0.50 DuPont CRL Ticor SA RBM BeMax Tiw e
Slide 6: Jacinth-Ambrosia Overview
Jacinth-Ambrosia Overview Portfolio Positioning • Key component of Iluka’s transformation to higher margin production base • Existing capacity utilised in Western Australia for processing of Jacinth-Ambrosia concentrate - reflects Iluka’s integrated approach to capacity utilisation - concentrate fro
Slide 7: Jacinth-Ambrosia Superior Margin Position
Jacinth-Ambrosia Superior Margin Position Industry Revenue to Cash Cost Ratio* 2011 -2013 First Quartile Second Quartile Third Quartile Fourth Quartile Ambrosia Jacinth- Murray Basin Iluka Other Iluka US Iluka WA Iluka Avg 2011-13 = 1.8 Ratio Iluka Avg 2006-08 = 1.3 0 25 50 75 100 % TiO2 + Zr (kt) •
Slide 8: Jacinth-Ambrosia Overview – Project Execution
Jacinth-Ambrosia Overview Project Execution • Project delivered 5 years from exploration success • Capital expenditure of $390 million vs capital budget of $420 million • Project delivered 3 months ahead of schedule - nil LTIs - nil environmental licence breaches • 1st concentrate produced in Novemb
Slide 9: Jacinth-Ambrosia Overview – Current Priorities
Jacinth-Ambrosia Overview Current Priorities • Focus on reducing operating costs • Establishment of strategic HMC stockpile at Narngulu –accelerate HMC transport • Given Iluka’s assessment of zircon market deficit, current 5 year business plan focus on avenues to increase zircon production: - debott
Slide 10: Industry Zircon:TiO2 Ratio
Industry Zircon:TiO2 Ratio Despite Advent of Jacinth-Ambrosia, Industry Z:TiO2 Ratio Remains Stable mt of TiO2 or Zircon Ratio t Zircon/t TiO2 7.0 0.35 TiO2 Historical Supply Zircon Historical Supply 6.0 0.3 Zircon/TiO2 Ratio All 5.0 Feedstock Producers 0.25 (including J-A) 4.0 0.2 3.0 0.15 Zircon/T
Slide 11: Product Market Application
Product Market Application • Premium grade zircon - low impurity levels suitable for ceramics market - similar to Eneabba quality for ceramics use – no longer available - application for casting, zirconium chemicals and zirconia applications • High titanium dioxide / rutile - low in sulphur and phos
Slide 12: Production and Financial Characteristics
Jacinth-Ambrosia Production and Financial Characteristics • Operating mines will produce HMC - includes mining, separation and transportation costs to mineral separation plant • Final product processing of HMC at one or more mineral separation plants (Narngulu or Hamilton) • Consequently, revenue, E
Slide 13: Production Characteristics
Production Characteristics All Figures are Approximate 2010 Year-to Date (end August) BUDGET ACTUAL Ore Mined million tonnes 5.565 6.377 Ore Grade % 7.8 8.0 VHM Grade% 6.7 6.3 HMC produced kt 397.9 431.3 VHM indicates that proportion of HMC VHM produced kt 355.4 353.5 expected to be recovered as sal
Slide 14: Production and Financial Components
Production and Financial Components • Cash production costs include: mining, separation and transportation costs of HMC from Port Thevenard and to Geraldton - transportation of HMC a major part of J-A’s cash costs of production • Cash cost of production not the key differentiator in mineral sands •
Slide 15: Operations Overview
Iluka Resources Limited Operations Overview Mining & Facilities Manager Shane Tilka
Slide 16: Operational Overview
Operational Overview Mining • Two contiguous deposits • Located within Yellabinna and Nullabor Regional reserves • First mining on mixed use reserves in South Australia • Initial mining of Jacinth with mine mining unit plant move to Ambrosia planned in 2017 • Total area disturbed by mining and infra
Slide 17: Scope of Project
Scope of Project • Accommodation village - designed to accommodate 160 persons (~ 300 construction) • Water - Saline water transported from borefield to site 32 km in GRP. 7 GL/annum raw water requirement - potable water produced by reverse osmosis plant • Unsealed airfield - fly-in-fly-out from Ced
Slide 18: Development Overview
Development Overview ILUKA JACINTH-AMBROSIA MINE Phase 2 Mining PAB Birection pen ee’ e— 7 Ew “ap Mine Design Extent e 7 Length of Jacinth Pit ~ 3,200m er 0 oF Maximum Width of Pit ~ 940m bee ° ‘te. Revegetated Area em Maximum Depth of Pit ~ 45m > boa Overburden Capping Machinery not to scale -- Pla
Slide 19: Operational Overview – Mine Plan
Operational Overview Mine Plan Mining Method • Conventional dry mining in large open pit • Overburden removal by truck and excavator • Dozer trap mining • Mining unit plant in pit Physical Properties • 900m wide by 5 km long • Free running, fine grained sand • Low in moisture; no groundwater • Avera
Slide 20: Mining Approach – Initial Phase
Mining Approach – Initial Phase • Mining started further north than originally planned, given Iluka’s supply response in 2009 to GFC conditions • Current mine plan entails mining south into higher grade zone (in light of strong recovery in market demand & tight global supply conditions) 20
Slide 21: Project Overview – Mining Contractor
Project Overview Mining Contactor • Exact Mining appointed in Mid 2009 - 5 year contract • Mining fleet to include: - 1200 Hitachi Excavator - 4 x 777 Caterpillar Haul trucks - 2 x 769 Caterpillar Haul trucks - 3 x D10 Dozers - 16H Grader - 345 Caterpillar Excavator - Water Cart • Predominantly fixe
Slide 22: Project Overview – Dozer Trap
Project Overview Dozer Trap Red loam White strand • Ore pushed by dozer into mobile mining unit plant (dozer trap) • 200m x 100m ore blocks • MUP capacity – Up to 1400 tph • Slurry (-10 mm) pumped to wet concentrator plant • Secondary screening at concentrator (-2 mm)
Slide 23: Project Overview – Processing
Project Overview Processing • On site processing of ore into a Heavy Mineral Concentrate (“HMC”) • Utilisation of wet concentrator plant relocated from USA • Ore slurry sent by pipeline to WCP - current distance of 1 km, extending to 7 kms for Ambrosia • WCP capacity of 1000 tonnes per hour - rateab
Slide 24: Project Overview – Wet Concentrator Plant
Project Overview Wet Concentrator Plant • Fit for purpose concentrator relocated from Georgia • Utilisation in keeping with equipment re-use & risk mitigation • Significant capex saving • Onsite storage capacity for HMC of 60,000 tonnes under stackers • Higher current stockpile – reflects intention
Slide 25: Jacinth Ambrosia Workforce
Jacinth Ambrosia Workforce • 100 operational personnel on site • Fly-in-fly-out from Ceduna / Adelaide • Roster - 8 days on 6 days off for fixed plant operators and Professionals - 2 weeks on 1 week off for Mining Contractor • Employment policy - Employee collective agreement established pre July 20
Slide 26: Project Overview – Final Processing
Project Overview Final Processing • Product processed at Iluka MSP at Narngulu, Western Australia • Construction of new plant & equipment to transfer HMC from ships, reclaim from stockpile and wash saline residue from surface • Existing MSP restored to dual train configuration by installation of a s
Slide 27: Project Overview – Water
Project Overview Water • Hyper saline water drawn from paleochannel • Bore field 34 kms from process plant • Paleochannel aquifer is distinct from Eucla Basin - remote from Nullabor Cave system • No groundwater dependent ecosystems associated with J-A water supply source • ~ 7 GL/annum raw water req
Slide 28: Project Overview – Transportation
Project Overview Transportation • HMC transported 270km by road to Port Thevenard • Portion of Ooldea Road upgraded to high quality unsealed • New 40km section to connect Ooldea Road to Eyre Highway • B -Triple 96 tonnes trucks, approximately 18 per day • Transport provider – Kalari 28
Slide 29: Project Overview – Transportation
Project Overview Transportation • Long term contractual arrangement to utilise ABB / Viterra ship loading facilities at Port of Thevernard • 40,000 tonnes storage facility at Port Thevenard • Time charter shuttle vessel established - payload of 25,000 tonnes - 16 day round trip to Geraldton, Western
Slide 30: Project Overview – Final Processing
Project Overview Final Processing • Product processed at Iluka MSP at Narngulu, Western Australia • Construction of new plant and equipment to transfer HMC from ships, reclaim from stockpile and wash saline residue from surface • Existing MSP restored to dual train configuration by installation of a
Slide 31: Final Processing – Narngulu, Western Australia
Project Overview Final Processing – Narngulu, Western Australia 31
Slide 32: Wash Plant Building
© ILUKA Wash Plant Building 32
Slide 33: SP Bins Conveyors and Trommel
SP Bins Conveyors and Trommel 33
Slide 34: Closing Slide
Closing Slide Further information: Dr Robert Porter, General Manager, Investor Relations +61 3 9225 5481 robert.porter@iluka.com www.iluka.com Closing Statement
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