Energy Resources Of Australia Ltd. Class A · ASX:ERA
Energy Resources Of Australia Ltd. Class A — Investor Presentation (May 2011)
26 slides from Energy Resources Of Australia Ltd. Class A's investor presentation, May 31, 2011
Slide 1: ASX cover letter for analyst handout
Head office Level 10, TIO Centre, 24 Mitchell St, Darwin NT 0800 GPO Box 2394, Darwin NT 0801, Australia T +61 8 8924 3500 F +61 8 8924 3555 Ranger mine Locked Bag 1, Jabiru NT 0886 Australia T +61 8 8938 1211 F +61 8 8938 1203 www.energyres.com.au ABN 71 008 550 865 A member of the Rio Tinto Group
Slide 2: Australian Financial Community, May 2011
For personal use only Energy Resources of Australia Ltd Australian Financial Community May 2011 Los Angeles, USA. 1
Slide 3: Forward-looking statements
Forward-looking statements This presentation has been prepared by Energy Resources of Australia Ltd (“ERA”) and consists of the slides for a presentation concerning ERA. By reviewing/attending this presentation you agree to be bound by the following conditions. For personal use only Forward-looking
Slide 4: Acknowledge Traditional Owners
Acknowledge Traditional Owners For personal use only The mining operations of Energy Resources of Australia Ltd (ERA) are located on Aboriginal land and are surrounded by, but separate from, Kakadu National Park. ERA respectfully acknowledges the Mirarr, Traditional Owners of the land on which the R
Slide 5: Key Outcomes in YTD - May 2011
Key Outcomes in YTD - May 2011 • Continued strong safety performance; For personal use only • Suspension of production from late January to expected late July 2011; • Successful management of third highest wet season on record; • Significant maintenance work completed in plant; • Strong mining fleet
Slide 6: Safety
Safety Continued strong safety performance 5.00 For personal use only 4.00 Frequency rate (per 200,000 hrs worked) AIFR LTIFR 3.00 2.00 1.00 LTIFR 0 0.00 2004 2005 2006 2007 2008 2009 2010 2011 5
Slide 7: Indigenous Employment
Indigenous Employment 120 20 Avg No. Ind. employees For personal use only % Ind. employees 18 98 100 95 16 83 83 14 80 Per cent of work force 12 Number 60 54 10 46 46 8 40 6 25 4 20 2 0 0 ) 10 05 04 06 07 08 09 TD 20 20 20 20 20 20 20 (Y 11 6 20
Slide 8: 2010/2011 Wet Season
2010/2011 Wet Season Rainfall from 01 September 2010 to 23 May 2011 (2427mm Bureau of Meteorology Jabiru Airport) For personal use only 1. 2006/07 2527mm Production suspension 2. 1975/76 2500mm 3. 2010/11 2427mm 4. 2005/06 2107mm 5. 2000/01 2052mm 7
Slide 9: Tailings Storage Facility status as of 23 May 2011
8 For personal use only Level (mRL) 48 49 50 51 52 53 54 55 1/01/2010 1/02/2010 1/03/2010 1/04/2010 1/05/2010 1/06/2010 Level (mRL) 1/07/2010 1/08/2010 1/09/2010 1/10/2010 1/11/2010 Maximum Operating Limit 1/12/2010 TSF Free Process Water Level 1/01/2011 1/02/2011 Free process water level (Relative
Slide 10: Pit#1 status as of May 2011
Pit#1 status as of 23 May 2011 Free process water level (Relative Level 14.25m) For personal use only *Temporary MOL * Temporary maximum operating limit (MOL) as approved by the regulators 9
Slide 11: Pit #3 status as of May 2011
Pit #3 status as of 23 May 2011 Total pond water inventory at the end of the 2010/2011 wet season higher than 2006/2007 (Cyclone Monica) For personal use only Pond Water Inventory (RP2 and Pit#3) 5500 5000 Total Pond Inventory (ML) Dry Season Target (ML) RP2 Spillway Level 4500 4000 3500 Volume (ML)
Slide 12: Water Management Improvements
Water Management Improvements • Significant catchment reduction works around Pit 1 to divert pond water from the process For personal use only water catchment • Plant modifications reduced process water inputs by approx. 500 mega litres per year • Enhanced treatment capacity of the current process w
Slide 13: Water Management Improvements
Water Management Improvements For personal use only Interception trench Reduction of process water inputs Improved performance of water treatment plant 4m TSF wall raise Pit 1 Catchment Work 12
Slide 14: Additional Pond Water Treatment
Additional Pond Water Treatment For personal use only • Addition of 11 mega litres /day of pond water treatment which doubles the current capacity • Installation commenced April • Foundations completed, tanks installed, pipelines installed, 5 containers installed • To be commissioned by July 2011 •
Slide 15: Tailings Storage Facility Lift
Tailings Storage Facility Lift Objective • To provide process water storage through to Pit#3 For personal use only availability to accept tailings and brine concentrator commissioning • Increase embankment by four metres Phase 1 – Phase completed – No new land disturbance – Water management incorpor
Slide 16: Brine Concentrator – Conceptual Flow Sheet
Brine Concentrator – Conceptual Flow Sheet • Approval of $80 million to conduct a feasibility study and to secure long lead items. Total capex estimated at $220 million For personal use only • Target capacity 1.83Gigalitres of distillate per TAILINGS year STORAGE DILUTE FEED FACILITY TANK BRINE TANK
Slide 17: Ranger Production Range
Ranger Production Range Current operations including Pit 3 (ending at the end 2012) and excludes major projects such as Ranger 3 Deeps and Heap Leach For personal use only 5,000 Tonnes 4,500 MINING & PROCESSING CEASES IN 4,000 3,500 JANUARY OF 2021 3,000 PIT 3 MINING CESSATION 2,500 2,000 1,500 1,00
Slide 18: Capital Expenditure – Water Management (2011-2014)
Capital Expenditure – Water Management (2011-2014) For personal use only Total ($ million) Brine concentrator ($80 million approved) 220 Tailings Storage Facility Embankment Lift (RL58m) 52 Pond Water – water treatment capacity 11ml/day 17 Pond Water Retention Ponds 30 Pit 3 tailings and process wat
Slide 19: Rehabilitation Activities
Rehabilitation Activities Current operations (Pit 3 and stockpiles), excluding major projects For personal use only Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Facilities Demolition 1 1 1 Pit #3 Backfill 1 1 1 1 1 1 Relocate Residual Stockpiles 1 1 Tails Re
Slide 20: Exploration Programme
Exploration Programme Zone 1 – George Town Structure Zone 2 – Ranger Lease For personal use only 300m Phase 1 (2011) Phase 2 (2011) 2011 Drillholes Proposed Soil Sampling Ranger Lease boundary Geophysical survey • Ranger exploration program scheduled for 2011 – 2013 • Ranger 2011 Exploration program
Slide 21: Business Review
Business Review • Internal team assisted by KPMG reviewing ERA’s near term strategic For personal use only priorities, business activities and operating model • Two core objectives: – Reduce near term cash costs to ensure the business is focussing on the most strategically appropriate and value crea
Slide 22: Ranger Deeps Exploration Decline
Ranger 3 Deeps Exploration Decline For personal use only 21
Slide 23: Ranger Deeps Exploration Decline – Critical Milestones
Ranger 3 Deeps Exploration Decline – Critical Milestones For personal use only Milestone Target Date Project approval June 2011 Award Site Preparation work August 2011 Commencement of Box Cut Excavation May 2012 Box Cut Excavation Completion Oct 2012 Commencement of Decline Construction Oct 2012 Com
Slide 24: Ranger Deeps Exploration Decline – Potential Path to Production
Ranger 3 Deeps Exploration Decline – Potential Path to Production • Exploration decline expected to be fully completed by 2014 For personal use only • All drilling information studied and finalised • Study completed on underground mine by early 2015 • Conversion of resources to reserves • EIS submit
Slide 25: Proposed Heap Leach
Proposed Heap Leach • ERA Board approval given for Feasibility Study (FS) in October 2009 ($36 million) For personal use only • Work continues on the Environmental Impact Statement (EIS) and it is expected to be ready for submission to the Northern Territory and Commonwealth Governments in H2 2011.
Slide 26: Summary
Summary • Continued strong safety performance For personal use only • Severe rainfall season successfully managed by the suspension of production and significant water management strategies • Expect to start up plant by end of July. Forecast production is 2400 tonnes for 2011 • Ranger 3 Deeps and He
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