Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Corporate Update (September 2008)
27 slides from Arafura Rare Earths's corporate update, Sep 2, 2008
Slide 1: Arafura Resources Limited
For personal use only Arafura Resources Limited Alistair J Stephens Managing Director September 2008 ©Arafura Resources Ltd
Slide 2: Important Notice
Arafura Resources Ltd For personal use only Important Notice This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance
Slide 3: Topics
Topics For personal use only – Why we are here? – Overview of Arafura – Overview of the Nolans project – Community benefits – Rare earth products – Rare earths market
Slide 4: Overview of Arafura
Overview of Arafura For personal use only ASX listed ASX:ARU 157.2 million shares (as at 1 Sept 2008) Principal project – Nolans phosphate hosted rare earths Rare earths – strategically vital commodities Exploration projects Rare earths Magnetite hosted vanadium, nickel, gold Business strategy Resou
Slide 5: Board of Directors
Board of Directors For personal use only Mick Muir Non-Executive Chairman Alistair Stephens Managing Director / CEO Hon Ian Laurance AN Non-Executive Director Ian Kowalick Non-Executive Director Stephen Ward Non-Executive Director Terry Jackson AN Non-Executive Director Senior Management Gavin Locky
Slide 6: Rare earths applications
Rare earths applications For personal use only
Slide 7: Nolans Project
For personal use only Nolans Project
Slide 8: Nolans project location
Nolans project location For personal use only Nolans project 135 km north of Alice Springs 5km to gas line 10km to Stuart Highway 15km to Aileron Roadhouse 60 km to rail line 1200 km north to Darwin 1300 km south to Port Pirie
Slide 9: Simple small scale open pit mining
Simple small scale open pit mining For personal use only No pre-strip needed Small mining operation - 800,000 tpa ore at 1:1 ore:waste strip ratio Crush, screen, wash ore by heavy media separation Transport <500,000 tpa concentrated ore using truck and rail Low power and water demand
Slide 10: Nolans Project Flowsheet
Nolans Project Flowsheet Heavy Media Separation Chemical Separation RARE EARTH processing Uranium Phosphoric Calcium Chloride Oxide Acid Residue (By-Product) PHOSPHATE processing Rare Earth Concentrate
Slide 11: Community benefits from the mine site
Community benefits from the mine site For personal use only 50 to 60 jobs with priority to locals Opportunities for Anmatjere people Service and supply contracts in Central Australia Community benefits Indigenous economic benefit Health, education, communications Water and power synergies Aile
Slide 12: Community benefits from the process plant
Community benefits from the process plant For personal use only 100 jobs with priority to locals Local purchasing policy Local people Capital expenditure $630 million Economic benefits Capital – Gross State Product $242 million 3400 jobs in construction 60 full-time New Industry
Slide 13: Project Timeline
Project Timeline Project Schedule For personal use only Activity 2008 2009 2010 2011 2012 2013 Submit NOI Mine Studies for Mine approval Mine approval Demonstration Plant Studies Definitive Feasibility Study Process Plant Site Selection Studies & Process Plant NOI + Approval Procurement & Constructi
Slide 14: Nolans production
Nolans production For personal use only Production per Current price Total revenue annum (tonnes) ($US) US$ million Rare earths 20,000 *15,000/tonne 300 Phosphoric acid 150,000 >1,000/tonne 150 Calcium chloride 400,000 100/tonne 40 Uranium 150 75/lb 25 Total revenue US$515 Total revenue at USD:AUD 0
Slide 15: Nolans business structure
Nolans business structure For personal use only Mining & Phosphoric acid Rare Earths concentration Plant Plant 100% Arafura Looking for partner Arafura - Incitec HOA • Autocatalysts Incitec Pivot Rare Earth • FCC catalyst in oil Arafura Catalysts chemical processing manufacture plant • Electronics M
Slide 16: Rare Earths Market
For personal use only Rare Earths Market
Slide 17: Rare earths – history and future
Rare earths – history and future Market driver Industry Structure For personal use only 1900s Emerging market in flint Emerging market 1950s Polishing and glass 1960s Oil industry catalyst Strong growth 1970s CRT TV era 1980s Phosphor era Industry reforms 1990s Magnet era China’s dominance 2000 Elec
Slide 18: China's export transition
China’s export transition Market driver Strategy For personal use only 1970s RE mineral concentrates Dominate the market 1980s Mixed RE chemical concentrates Displace competition 1990s Separated RE metals and oxide Add value 2000 Alloys, magnets, polishing powders Foster China’s growth Now Lights, L
Slide 19: Rare earths market
For personal use only Rare earths market
Slide 20: Demand for our product is strong
Demand for our product is strong Rare earths For personal use only Chemical catalysts Growing at 5% to 10% per annum Stronger growth to come from rechargeable battery market and increased heavy crude oil production Magnets Market growth currently 15% to 20% per year Strong growth in the hybrid car m
Slide 21: Nolans markets
For personal use only Nolans markets
Slide 22: Issues
Issues For personal use only Site location needs and Infrastructure Water Power Gas Road and rail Port access Other Waste management Emissions Uranium
Slide 23: Appendices
For personal use only Appendices
Slide 24: Rare earths - metals for the future
Rare earths - metals for the future For personal use only
Slide 25: Project environmental and social benefits
Project environmental and social benefits For personal use only REO Production Component End Product Environmental Savings Reduces NOX which aggravates respiratory CeO2 3,500t Auto catalysts 25 million cars problems, causes acid rain and damages aquatic environments. Ultra violet Architectural CeO2
Slide 26: Nolans is enriched in higher value RE
Nolans is enriched in higher value RE Ce+La Nd, Pr, Dy SEGY For personal use only 100 5% 95 90 percentage 85 27% 80 75 70 65 68% 60 Mt Pass Baotou Sichuan Mt Weld Nolans Value US$/Kg 10.9 12.5 12.5 15.1 15.6 Nolans has additional a co-product of phosphoric acid and by-products of uranium and calcium
Slide 27: Nolans final product value
Nolans final product value Product value including co-product and by-product credits in US$/kg as REO equivalent For personal use only 30 Nolans Expressed in US$/Kg REO equivalent 20 US$/kg CaCl REO Uranium Phos Acid 10 Rare Earths 0 Nolans Mt Weld Baotou Mt Pass
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