Slide 1: Niobec Tour Presentation
June 23, 2009 Niobec Tour Presentation Gordon Stothart Chief Operating Officer
Slide 2: Introduction
2 Niobec Mine Analysts’ Visit INTRODUCTION 2009.06.23
Slide 3: Mine site location
3 Mine site location Saint-Ludger-de-Milot QUÉBEC Dolbeau Péribonka Niobec Montréal Lac St-Jean Alma Niobec Roberval Saint-Honoré Chicoutimi Jonquière 0 25 kilometres
Slide 4: Introduction: History of Niobium
4 Introduction History of Niobium Atomic Number 41 Pyrochlore : NIOBIUM (COLUMBIUM) Columbite: (Ca,Na)2Nb2O6(OH,F) (Fe,Mn)Nb2O6 1801 DISCOVERED BY ENGLISH CHEMIST • Charles Hatchett 1925 FIRST USES • Reserved for strategic use 1953 DISCOVERY OF OKA DEPOSIT, QUEBEC • Production commences in 1959 • Co
Slide 5: Niobec History
5 Niobec History Soquem: 50% Teck Corporation: 50% IAMGOLD: Teck Corp. (Copperfield): 25% Cambior: 100% 7000 Cambior: 50% 100% Lamaque Mining: 25% 6000 2010: Paste Backfill 5000 Mill Expansion to 6240 t/d Nominal Production Rate (t/d) 1994: Construction of 2002: ISO 9000:2000 4000 Ferroniobium Conve
Slide 6: World Production
6 World Production NIOBEC 9% CBMM CATALAO 82% CBMM CATALAO 9%
Slide 7: Niobium Market
Niobec Mine Analysts’ Visit NIOBIUM MARKET
Slide 8: Uses & End Users of Niobium
8 Uses & End Users of Niobium • Steel Industry – High Strength Low Alloy (HSLA) steel (micro-alloy) – Enhances steel strength – Automobile, Pipeline and Structural • Stainless & Heat Resistant Steels – Ferritic grades (nickel free) – Heat resistance, weldability • Example: exhaust system in automobi
Slide 9: Uses & End Users of Niobium (cont.)
9 Uses & End Users of Niobium (cont.) • Other iron & steel products – Drill pipe & well casing – Machining cutting tools • Superalloys (NiNb, FeNb vacuum grade) – Materials designed to function for extended periods of time in highly oxidizing and corrosive atmospheres at temperature above 650oC – Je
Slide 10: Evolution of Niobium Usage by End Use
10 Evolution of Niobium Usage by End Use 61 kt 24% Pipe 24% Automobile Structural } Ferroniobium Stainless Steel Other Steels & Iron 29% Nb Metal & Alloys 10% 58% 10% 8% 10% 11% 6% 5% 5% 1980 2008
Slide 11: Ferroniobium Marketing for Niobec
11 Ferroniobium Marketing for Niobec • Niobec’s final product is Ferroniobium = FeNb • Niobium content in FeNb is 66% • Ferroniobium is sold on its Nb content & traded in US dollars • Revenues are calculated on Nb content • Capacity, export, import, consumption quantities for ferroniobium are based
Slide 12: Ferroniobium usage
12 Ferroniobium usage HIGH STRENGTH LOW ALLOY STEEL (HSLA) PIPELINE INDUSTRY CONSTRUCTION • gas pipeline • automobiles • bridges • oil pipeline • aeronautics • buildings
Slide 13: FeNb Producers
13 FeNb Producers CBMM Catalao Niobec Reserves + 500,000 16,000 20,000 (000 tonnes) Grades 2.5% 1.2% 0.65% (%Nb2O5) Mining O/P O/P U/G Content 18.9 7.25 3.80 (kg Nb2O5/t) 2009 Cap. 90,000 6,700 6,800 (t/yr FeNb) Mine life +400 +20 +18 (years) Location Araxas, MG, Brazil Catalao, GO, Brazil Chicoutim
Slide 14: Known Niobium Deposits
14 Known Niobium Deposits Project, Minerals / Resources Status Country Ore 360 M t @ 1.02% Nb2O5 • Eramet: low recovery, Mabounié, Pyrochlore • high CAPEX, Gabon 40 M t @ 2.50% Nb2O5 • No go for now Niocan, • Awaiting Environmental Pyrochlore 11 M t @ 0.63% Nb2O5 permits since 2001 Canada Luesche, •
Slide 15: World Steel Consumption
15 World Steel Consumption Tonnes FeNb (millions tonnes) Steel 95000 1500 85000 1400 75000 1300 65000 1200 55000 1100 45000 1000 35000 FeNb 900 25000 800 Crude Steel 15000 700 5000 600 82 84 86 88 90 92 94 96 98 00 02 04 06 08 Nb Actuals: Compilation (by IAMGOLD) of Export data and Brazilian consump
Slide 16: World FeNb Usage Intensity
16 World FeNb Usage Intensity g FeNb/t steel (millions tonnes) Steel 70 1450 65g/t 62g/t 65 1350 60 57g/t 1250 FeNb Intensity 55 1150 50 Steel Production 1050 45 950 40 35 850 30 750 2000 2001 2002 2003 2004 2005 2006 2007 2008 Nb Actuals: Compilation (by IAMGOLD) of Export data and Brazilian consum
Slide 17: World FeNb Consumption Breakdown per Region
17 World FeNb Consumption Breakdown per Region 1997 2008 (25 kt FeNb) (87 kt FeNb) Other 10% NAFTA Other 26% 15% China NAFTA 3% 30% China 23% Japan 22% EU 30% Japan EU 11% 30% 1. Compilation (by IAMGOLD) of Export data and Brazilian consumption
Slide 18: World Consumption Forecast (FeNb)
18 World Consumption Forecast (FeNb) Tonnes FeNb (millions tonnes) Steel Forecasts 1600 145000 1500 2010 : Growth 15 % 125000 1400 20% reduction 105000 Consumption 1300 1200 85000 1100 FeNb 65000 Consumption 1000 900 45000 82-93 : Growth 0.2% 800 25000 Crude Steel 700 Production 5000 600 82 84 86 88
Slide 19: Forecast World Consumption / Capacity
19 Forecast World Consumption / Capacity Tonnes Forecasts 180,000 160,000 140,000 Production Capacity 120,000 100,000 FeNb 80,000 Consumption 60,000 40,000 20,000 0 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 1. IAMGOLD estimates
Slide 20: Supply
20 Supply CBMM is increasing its production to meet short terms demand Staged Investment program announced to move capacity to 150,000 tpa by 2013 has been put on hold Additional capacity expected once market conditions improve, limited to 150,000 tpa Future investments (> 150,000 tpa) by CBMM
Slide 21: Demand
21 Demand Demand is driven by increase in intensity, and growth in steel production. Intensity: production of higher value added steels (~67% of growth), especially China Steel: new steel capacity in developing countries (~33% of growth) FeNb demand has grown by 17% since 2002. Pipeline steels
Slide 22: Market Highlights
22 Market Highlights CBMM initiated prices increases USD 19/kg Nb Q1 2007 USD 22-24/kg Nb Q2 2007 Prices peak at $US 40/kg Nb in Q4 2008 to settle between $37–$40 in Q2 2009 FeNb is still a Value Added input Total raw material cost of FeNb to steel producers is much less than extra value of
Slide 23: Ferroniobium Future Prices
23 Ferroniobium Future Prices FeNb prices are expected to continue to increase over the next 3 to 4 yrs. Cost of investments required to maintain the supply in balance with demand, and by the desire of CBMM to increase income. It is expected that CBMM will further increase prices once market con
Slide 24: Niobec Operation
Niobec Mine Analysts’ Visit NIOBEC OPERATION
Slide 25: Niobec Mineralogy
25 NIOBEC MINERALOGY Group Components % Weight Carbonates Dolomie, Calcite 64.9 Ankerite, Siderite Silicates Zircon, Biotite, Chlorite 21.1 Na, K ,Feldspaths Pyroxenes, Nephelin Phosphates Apatite 6.8 Niobium Oxides Pyrochlore 1.1 Columbite Other Oxides Magnetite, Hematite 1.7 Rutile, Ilmenite Sulph
Slide 26: Niobec Reserve & Resources
26 NIOBEC RESERVE & RESOURCES December 31, 2007 December 31, 2008 Niobec Contained Contained Ore Tonnes Grade Ore Tonnes Grade 100% ( ‘000 t) (% Nb2O5 ) Nb2O5 ( ‘000 t) (% Nb2O5 ) Nb2O5 (‘000 t) (‘000 t) Reserves Proven 10,176 0.62 63.1 11,367 0.58 66.0 Probable 6,213 0.62 38.5 12,133 0.59 71.8 Tota
Slide 27: Reserves/Resources by Mine Level
27 Reserves/Resources by Mine Level Reserves/resources Hoisted production Dec. 2007 Dec. 2008 Act. 2008 Bud. 2009 Block 997 1,405 146 259 1 0.53% 0.51% 0.58% 0.51% 3.03 kg/t 2.91 kg/t 3.38 kg/t 2.94 kg/t Block 2,196 3,203 438 425 2 0.61% 0.56% 0,64% 0.64% 3.53 kg/t 3.20 kg/t 3.80 kg/t 3.52 kg/t Bloc
Slide 28: Exploration
28 Exploration Est. Spend Year Targets / Comments (‘000 $CAD) • 50% Infill Levels 4, 5, 6 2009 $291k • 50% Explore Below Level 6 • 35% Infill/Explore Level 4, 5, 6 2010 $865k • 65% Explore Below Block 6 • 100% Infill Blocks 4, 5, & 6 2011 $315k • Exploration to be determined • 100% Infill Blocks 4,
Slide 29: Exploration within Lower Block
29 Exploration within Lower Block
Slide 30: Underground Operations
30 Underground Operations EMPLOYEES: 110 CURRENT MINING METHOD – Longhole Open Stoping – 45 m x 25 m x 90 m – Drilling 6.5” – No backfill PRODUCTION – Active Levels 600, 1,000 and 1,450 – 5,040 t/d (7 days/week) – Highly mechanized – Scooptrams 7.3 and 12 yd3 – Trucks 26 tonnes RAMP – 2.5 km SHAFT –
Slide 31: Concentrator
Concentrator 31 Silo 600T Employees: 58 Silo A 1400T Silo B 1400T Recovery Nb2O5 = 60% OK- 50 OK-50 Crushing Grinding Carbonate flotation Scavenger Rods Balls Tailing Screening Balls 1st Cleaner Tailing Scavenger 2" Pyrite 10" Desliming 4" Conditioners Tailing 2nd Cleaner Dewatering 10" Sulfide 1 Ma
Slide 32: Convertor Plant
Convertor Plant 32 Employees: 24 Aluminothermic Reaction Feed Material: 6,400 kg Batch • Niobium concentrate • Aluminum • Iron • Sodium nitrate • Recycled fines Products • Ferroniobium: 2,300 kg (66% Nb, 34% Fe) • Slag: 4,100 kg (Returned Underground)
Slide 33: Niobec Market
33 Niobec Market
Slide 34: Paste Backfill Project
Niobec Mine Analysts’ Visit PASTE BACKFILL PROJECT
Slide 35: Paste Backfill Project
35 Paste Backfill Project • Upper levels of the Niobec mine (Levels 1, 2, & 3) are mined using longhole open stoping without backfill. • Ore grade rock is permanently left behind as both vertical and horizontal pillars to support open voids 4 block, extraction has been ~50% of total ore • In upper g
Slide 36: Backfill Plant (view plan)
36 Backfill Plant (view plan)
Slide 37: Paste Backfill Economic Analysis
37 Paste Backfill Economic Analysis • Differential IRR of Fill vs. No Fill case is 16%; NPV8 is $76 M US • Economic justification comes from extended mine Life • Lower Block Reserves + Resources increase to 42 Mt from 24 Mt • No additional development required • Analysis Based on Lower Block (Levels
Slide 38: Paste Backfill Economics
38 Paste Backfill Economics Differential IRR vs. Nb Price (with backfill vs. without backfill) 40% 28% 31% 30% 23% 16% 20% 10% 2% 0% $15 $20 $25 $30 $35 $40 Nb Price ($US/kg) (US$ 000)
Slide 39: Mill Expansion Project
Niobec Mine Analysts’ Visit MILL EXPANSION PROJECT
Slide 40: Mill Expansion Project
40 Mill Expansion Project • Niobec average mill throughput is currently 210 tonnes per hour. • Change out and repowering of the Niobec hoist in 2007-08 has a designed average hoisting capacity of about 260 tonnes per hour. • With the move to the lower block of the mine, it will be possible to increa
Slide 41: Mill Expansion (view plan)
41 Mill Expansion (view plan)
Slide 42: Mill Expansion Economic Analysis
42 Mill Expansion Economic Analysis • Differential IRR of Expanded vs. No Expansion case is 33%; NPV8 is $51 M US • Economic justification comes from increased Ferroniobium production in near term • Assume same reserve base, therefore shorter mine life • Production increase assumed for 13 years only
Slide 43: Mill Expansion Economics
43 Mill Expansion Economics Differential IRR vs. Nb Price IRR (with backfill vs. without backfill) 70% 80% 60% 49% 60% 36% 40% 23% 20% 8% 0% $15 $20 $25 $30 $35 $40 Nb Price ($US/kg) Project Sensitivity on Differential NPV (@8%) (US$ 000) 150,000 Nb price (Base Case US$25/kg) 100,000 Exchange (Base
Slide 44: Safety Talk for Visitors
Niobec Mine Analysts’ Visit SAFETY TALK FOR VISITORS
Slide 45: End of Presentation
Niobec Mine Analysts’ Visit END OF PRESENTATION
Slide 46: IAMGOLD Head Office
IAMGOLD Head Office 401 Bay Street, Suite 3200, PO Box 153 GORDON STOTHART Toronto, Ontario, Canada M5H 2Y4 Chief Operating Officer T 416 360 4710 F 416 360 4750 T 416 933 5772 F 416 360 4750 W www.iamgold.com E info@iamgold.com E gstothart@iamgold.com