Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Hong Kong Minor Metals Conference 2007
19 slides from Arafura Rare Earths's conference presentation, Sep 3, 2007
Slide 1: Arafura Resources Ltd - Hong Kong Minor Metals Conference
Arafura Resources Ltd For personal use only Alistair J Stephens Managing Director Hong Kong Minor Metals Conference September 2007
Slide 2: Business summary
Arafura Business summary only Exploration About Focused on the Northern Territory in Australia For personal use Development Long life resources capturing significant market position Rare Earth Market Developing technical & market knowledge Relationships Developing strong relationships in Asia & Euro
Slide 3: Arafura's projects
Arafura Arafura’s projects Arafura Resources only About 10% NuPower 100% Arafura Uranium For personal use Nolans Exploration Resource will sustain a Vanadium Operating life of +20yrs Multiple revenue streams Gold REO, Phosphate, Uranium Nickel Target production 2010 farm-in by Mithril Resources
Slide 4: Nolans - location
Nolans Nolans - location only Nolans About 5km to gas line For personal use 10km to Stuart Highway 60 km to rail line 135 km north of Alice Springs 1200 km to Darwin
Slide 5: Nolans project geology
Nolans Nolans project geology only 18.6 million tonnes (JORC) resource About 3.1% REO 577,000 t For personal use 14% P2O5 2.6mt P2O5 0.47 lb/t U3O8 8.7m lbs Mining rate @ 750ktpa Low strip ratio 75m No overburden No waste in first 3 yrs 100m Low cost mining - SAFE
Slide 6: Nolans process
Nolans Nolans process Mining only 750,000 tpa About Washing & transport to Darwin For personal use Acid Leach 530,000 tpa Sulphuric acid treatment High REO recovery Neutralization Metal recovery Caustic “cracking” process Thorium separation SX for Phosphoric acid recovery REO extraction and separati
Slide 7: Nolans Project Flowsheet
Nolans Project Flowsheet = % % OPEN PIT MINING LOAD AND HAUL TAILINGS =I (PIT RETURN) _ RAILTO DARWIN 2nd REO STREAM REO PRODUCTS a LIQUID CALOUM CHLORIDE pothe ARAFURA RESOURCES LIMETED Concaptunl Flowshost design os at July 2007
Slide 8: Nolans recoveries
Nolans Nolans recoveries only Important recoveries About Beneficiation (REO) 95% 30% mass rejection For personal use Rare Earths 90% sulphuric acid process Total RE Recovery 83% highest in the industry Phosphoric acid 80% low contaminants, high quality Indicative recoveries yet to be finalized in te
Slide 9: Development Plans - Nolans
Nolans Development Plan only Development Plans – Nolans About 2007 Pre-feasibility study (Q4 - 2008) and pilot plant (Jan 2008) For personal use 2008 Pilot plant and detailed engineering design 2009 Construction 2010 Commissioning and production 2011 Full production Parallel Issues 2007 Lodge Notice
Slide 10: History of RE market
onlymarket History of RE market Market driver Industry Structure earths 1900’s Emerging market in flint 1950’s Polishing & glass Emerging market 1960’s Oil Industry Catalyst use 1970’s CRT TV era Strong growth The rare 1980’s Battery era Industry reforms For personal 1990’s Magnet era 2000 Electroni
Slide 11: History of RE market
onlymarket History of RE market Market driver Industry Structure earths 1900’s Emerging market in flint 1950’s Polishing & glass Emerging market 1960’s Oil Industry Catalyst use 1970’s CRT TV era Strong growth The rare 1980’s Battery era Industry reforms For personal 1990’s Magnet era 2000 Electroni
Slide 12: Rare Earths Demand and Supply
onlymarket Rare Earths Demand and Supply 180,000 earths Demand growth estimated at 8.5% pa 170,000 +150,000 tonnes by 2010 use 160,000 +190,000 tonnes by 2012 The rare 150,000 Supply Gaps 140,000 For personal 130,000 120,000 110,000 100,000 90,000 2006 2007 2008 2009 2010 2011 China Other Nolans
Slide 13: Nolans product mix
onlymarket Nolans product mix The Nolans project is rich in high value rare earths. earths 100 4.5% use 90 % R E O C o n te n t The rare 27% For personal 80 70 60 2006 demand Baiyun Obo Mountain Pass Mt weld Nolans Ce+La Nd+Pr+Dy Heavy RE
Slide 14: REO HEV Magnet Market
onlymarket REO HEV Magnet Market An example of fragmentation in the magnet market market use The rare For personal earths
Slide 15: REO Battery Market Structure
onlymarket REO Battery Market Structure Another example of market fragmentation use The rare For personal earths
Slide 16: Threats & opportunities
onlymarket Threats & opportunities THREATS OPPORTUNITIES earths Lack of production restraint Increased heavy crude oil production • Oversupply, imbalanced supply • FCC demand use • Current fragmentation Automotive exhaust catalysts • Cerium The rare Substitution • Li-ion batteries Strong growth in H
Slide 17: Arafura - Joint Venture Structures
Arafura - Joint Venture Structures use Strategy only Mine and Metals Separation Products Process Alloys Arafura Arafura Base Plan Advanced Magnets Processing • Electronic motors Product sales to 99% REO For personal Collaborate with a Batteries Additional sales of PA, Uranium current advanced Oxide,
Slide 18: Partnership issues
Partnership issues use Strategy only Commodity off-take Simple production concept : complex in marketing Accentuates the current market complexity & fragmentation Arafura Does have production scale efficiency Product Model For personal Requires a partner with downstream technology & production capab
Slide 19: Arafura & the rare earths market Summary
Arafura & the rare earths market Summary only Development of Nolans Focused on developing the Nolans multi-commodity deposit use Relationships in Partnership Looking to develop an exclusive value chain relationship personal Rare Earths Market Rapid growth in demand will drive prices up & substitutio
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