Slide 1: South Africa Manganese – Mamatwan Site Tour
26 September 2016 South32 Limited For personal use only (Incorporated in Australia under the Corporations Act 2001 (Cth)) (ACN 093 732 597) ASX / LSE / JSE Share Code: S32 ISIN: AU000000S320 south32.net SOUTH AFRICA MANGANESE – MAMATWAN SITE TOUR South32 Limited (ASX, LSE, JSE: S32) (South32) will t
Slide 2: Mamatwan Investor Tour
For personal use only MAMATWAN INVESTOR TOUR • 26 SEPTEMBER 2016
Slide 3: Important Notices
• IMPORTANT NOTICES For personal use only • This presentation should be read in conjunction with the Annual Financial Report as at 30 June 2016, Financial Results and Outlook – Year ended 30 June 2016, Quarterly Report for June 2016 and any other announcements made by South32 in accordance with its
Slide 4: South Africa Manganese Resource and Reserve Statement
• SOUTH AFRICA MANGANESE RESOURCE AND RESERVE STATEMENT For personal use only Mineral Resources As at 30 June 2016 Measured Indicated Inferred Total South32 Resources Resources Resources Resources Interest Deposit (1) Ore Type Mt % Mn % Fe Mt % Mn % Fe Mt % Mn % Fe Mt % Mn % Fe % Wessels Lower Body-
Slide 5: Our Safety Performance
• OUR SAFETY PERFORMANCE For personal use only • Two fatalities in Manganese South Africa in FY16: Hotazel Manganese Mines Total Recordable Injury Frequency (TRIF) ۛ Mamatwan (rail operations), November 2015 (per million hours worked) ۛ Wessels (mobile equipment), June 2016 5.2 • Our plan for a step
Slide 6: Committed to Transformation
COMMITTED TO TRANSFORMATION For personal use only • Committed to the National Transformation Agenda as enacted in Hotazel Manganese Mines workforce diversity the B-BBEE Act and the Mining Charter Black South African • Accelerated the implementation of key transformation initiatives: Women ۛ Facilita
Slide 7: Community and Economic Contribution
COMMUNITY AND ECONOMIC CONTRIBUTION For personal use only • We want to be trusted by society and the communities in South32 FY16 Community which we operate investment1 by country • During FY16, South32 contributed US$16.5M to 6% community investment, of which US$2.2M was spent at South Africa Mangan
Slide 8: South Africa Manganese Ownership Structure
• SOUTH AFRICA MANGANESE OWNERSHIP STRUCTURE For personal use only South32 Anglo American 60% 40% Empowerment partners 26%1 Samancor HMM Education Ntsimbintle Mining NCAB Resources2 Iziko Mining2 Manganese Trust2 100% 74% 9% 7% 5% 5% Hotazel Metalloys Manganese Mines (HMM) 100% 100% Mamatwan Wessels
Slide 9: The Kalahari Manganese Field
• THE KALAHARI MANGANESE FIELD For personal use only Illustration of the Kalahari Manganese Field • The Kalahari Manganese Field (KMF) of South Africa hosts the majority of the world’s minable Wessels Mine High (Wessels) grade areas manganese mineralisation 40 – 48% Mn • Open-pittable resources are
Slide 10: Hotazel Manganese Mines
• HOTAZEL MANGANESE MINES For personal use only Mamatwan Wessels Discovery/history • Commenced production in 1964 Discovery/history • Commenced production in 1973 Reserves • 62.1Mt @ 36.7% Mn Reserves • 90Mt @ 42.2% Mn • Reserve life: 17 years • Reserve life: 67 years Resources • 94.7Mt @ 34.9% Mn R
Slide 11: South Africa Manganese Flow Chart
• SOUTH AFRICA MANGANESE FLOW CHART For personal use only Mamatwan Wessels Ore Processing Plant Surface Plant MM Sinter W1 Lump Sinter Metalloys1 M1 Lump Oxygen Blown M10, M11, M12, M14 Convertor High Carbon Medium Carbon W1 Lump, W1 Fines, W4 M1 Lump and M1 Fines Ferromanganese Ferromanganese Lump
Slide 12: Mamatwan Life of Operation Plan
• MAMATWAN LIFE OF OPERATION PLAN For personal use only Life of Operation Plan Progress Plot Illustration of overburden and bench-design • One of the largest manganese mines in South Africa • Large resource base with medium-grade (37% Mn) ore product • Conventional drill and blast open-pit mine • Cu
Slide 13: Mamatwan Process Flow
• MAMATWAN PROCESS FLOW For personal use only Capacity: 1,100t/h Ore Processing Plant Drilling, Blasting and In-pit Primary crusher (OPP) ROM Ore Rail load out Mining (-150mm) Secondary crushing stockpile products (-75mm), washing and screening Capacity: 3.8Mtpa Capacity: 750t/h Kawa feed Sinter pro
Slide 14: South Africa Manganese Logistics
• SOUTH AFRICA MANGANESE LOGISTICS For personal use only • ~85% of current HMM ore production is exported; the balance is converted to ferromanganese alloy at Metalloys • Transport and logistics costs are approximately 40% of the costs to export manganese ore • Transnet allocated MECA2 export rail c
Slide 15: Key Metrics - HMM
• KEY METRICS - HMM For personal use only Operating cost, including Sustaining capital FY16 Operating cost, excluding Sustaining capital expenditure1 14% Labour related Production2 2.3 1.7 N/A (Mt) Transport & logistics 39% Raw materials & consumables 2.23 37% 203 2.01 Other Operating unit cost, 10%
Slide 16: For personal use only
For personal use only