Slide 1: Kenmare Resources Plc. Moma Project Update
Kenmare Resources Plc. Moma Project Update 23rd July 2002
Slide 2: Inaugural Lender Meeting
Inaugural Lender Meeting § Banks : KfW, EIB, AfDB, FMO, DBSA, ABSA. § Objectives : § Agree Amounts - US$280 million Expressions of Interest § Agree Timetable § Agree Appointment of Independent Engineer and Lenders Legal Counsel
Slide 3: Lender Advisor Appointments
Lender Advisor Appointments § Independent Engineer § Lenders Legal Counsel Milbank, Tweed, Hadley & McCloy
Slide 4: Post DFS Technical Work
Post DFS Technical Work § Tailings & Waste Handling System § Roaster § Grid Power Study § Environmental Studies § Work in Progress
Slide 5: Tailings & Waste Handling
Tailings & Waste Handling § Objective - Make the Waste Handling System Demonstrably Workable & Failure Proof § Study Done to DFS Standards § Completely Redesigned System § Solution - Remove Slimes From Tailings Stream & Dispose Separately in Slimes Dam § Advantages - No Risk of Slimes Re-entering Dr
Slide 6: Tailings & Waste Handling
Tailings & Waste Handling Slime Tailings Overflow Slime Tailings Cultivation Concentrator Wet Plant Cyclone Feed Prep Module Wet Plant Module Jet Dredge Slime Tailings Sand Tailings Truck Transport of Dried Slimes Thickened Slimes Slimes Thickener Slimes Dam Rehabilitation Drying Dam
Slide 7: Upgraded Roaster
Upgraded Roaster § Capacity to Treat 42 t/h i.e. 50% of Ilmenite Feed § 2nd Pilot Plant Run - Better Design Information § Study Performed by Ausenco, Roaster Specialists § 10 tonne Ilmenite Sample Being Produced for Industrial Scale Pilot Run
Slide 8: Powerline
Powerline Existing line New 110kV line Cahora Bassa Dam Moma Line in Red 20MW Backup Generator
Slide 9: Powerline
Powerline § Power Feasibility by Merz & McLellan § Power Line From Nampula Sub-station to site § 110kV Line Over 170 Km New 110kV line Delivering 24MW § Full Diesel Electric Backup Included § Power Supply Agreement in Moma Final Stages § EIA & EMP Underway
Slide 10: Power Supply Agreement
Power Supply Agreement § Cost to Kenmare - EDM Purchase Cost From HCB + $ 1c/kWh Wheeling + Line Losses (Circa 5%) § EDM Purchase Cost ~$ 0.5c/kWh § Renegotiation of EDM Purchase Cost From HCB in Progress § O & M Agreement under negotiation with EDM
Slide 11: Environmental Management
Environmental Management Project § Environmental Management Plan (EMP) & Resettlement & Compensation Plan (RCP) Underway § World Bank Guidelines to be applied § EMP approval End Nov 2002 § RCP approval Mid Jan 2003 Powerline § EIA, EMP, RCP progressing § Route selection & initial route survey comple
Slide 12: Work In Progress
Work In Progress § Jetty Geotech - Tender Documents Issued § Topographical Surveys – Dry Plant Area, Accommodation Area & Slimes Dam Completed § On Land Geotech - Drilling Underway § EMP - Underway (Project & Power Line) § H.A.L. Study on Zircon - Commissioned
Slide 13: Agreements with the Government
Agreements with the Government Mineral Licensing Contract Implementation Agreement § 25 years (renewable) Grant of IFZ status § Right to obtain mining licence § Stabilisation of fiscal terms Stabilisation of fiscal terms § Export, sale and foreign Export, sale and foreign exchange rights exchange ri
Slide 14: Moma Products
Moma Products Steady State Year tonnes Revenue 000s % Sulphatable Ilmenite 314 37 Chlorinatable Ilmenite 298 39 Total Ilmenite 612 76 Rutile 15 12 Zircon 25 12 Total 652 100
Slide 15: Off-Take Sulphatable Ilmenite
Off-Take Sulphatable Ilmenite 300,000 t Sulphatable Ilmenite 166 k TiO2 Units § Sulphate Market 1.7 million tonnes TiO2 Units § Positive Test Results by All Major Users § Difficulty in Tying Down Contracts § Concern About Development Actually Occurring § Market Slowdown § Reluctance to Facilitate St
Slide 16: Off-Take Chlorinatable Ilmenite
Off-Take Chlorinatable Ilmenite § 300,000 t Production § Contract in Place for Up to 200,000 t § 100,000 t Remaining - Focused Marketing Program
Slide 17: Off-Take Co-Products
Off-Take Co-Products § Zircon - Agreement in Principle with Two Large Customers for 100% of Supply § Rutile - Major Customers have indicated willingness to take all product
Slide 18: Contracting Strategy
Contracting Strategy § Kenmare intends to issue a fixed price lump sum contract § In Discussion with Potential Contractors § Kenmare / Kvaerner working towards an Invitation to Bid
Slide 19: Implementation Staffing
Implementation Staffing § Kenmare to Hire Project Director Who Will Assemble a Small Team § Kvaerner Appointed as Client Representative § Project Director will Hire Staff or Use Kvaerner to Fill Functional Roles
Slide 20: Implementation Structure
Implementation Structure Head Office Kenmare Kenmare Project Director Staff Project Services •Finance • Cost Control •Marketing KVAERNER •Operations • Scheduling Client Rep. •Government Liaison • Accounts Project Manager Procurement •Buyer •Expediting •Inspection Technical Implementation Contractor
Slide 21: Project Management Structure
Project Management Structure Site Office Kenmare Kenmare Project Director Staff •Finance KVAERNER •Marketing Client Rep. •Operations Project Manager •Government Liaison Site Construction Manager Camp Contracts Site Erection QA/QC Site Site Cost Manager Manager Superintendents Safety Manager Planner
Slide 22: Operational Staffing
Operational Staffing § Expatriate Staffing Level Starts at 40 - Reduces to 16 § Project Attractive to S.A. Based Expertise Because of Hard Currency Earnings & Proximity § Kenmare Has Been Approached by Individuals & Whole Teams From the Australian & S.A. Industry § At the Start of the Implementation
Slide 23: Moma Project Implementation
Moma Project Implementation
Slide 24: Moma Project Operation
Moma’ Project Operation Dredge & Concentrator Plant Product Barge Offloading Ge = eae v y KENMARE «|
Slide 25: Moma Project Timeline
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Slide 26: Kenmare Resources – Moma Project
Kenmare Resources – Moma Project § Project Ready for Development § Key Elements In Place § Expertise Available § First Offtake Agreement Established § Supply Deficit Predicted
Slide 27: Kenmare Resources Plc.
Kenmare Resources Plc.