Australian Silica Quartz Group Limited · ASX:ASQ
Australian Silica Quartz — Bauxite Resources — Shareholder Meeting (November 2008)
20 slides from Australian Silica Quartz's shareholder meeting presentation, Nov 21, 2008
Slide 1: Bauxite Resources Limited
BAUXITE RESOURCES LIMITED BAUXITE RESOURCES LIMITED ABN 72 119 699 982 Registered Office: Postal Address: 3/159 Adelaide Terrace PO Box 6664 East Perth WA 6004 East Perth WA 6892 Telephone: (08) 9221 5019 Facsimile: (08) 9221 4385 Website: www.bauxiteresources.com.au
Slide 2: The Perth Team
BAUXITE RESOURCES LIMITED The Perth Team (Left to right) Executive Chairman Managing Director Marketing & Logistics Manager Geologist, Richard Millington and Luke Atkins Dan Tenardi Chester Chen Exploration Manager Peter Bleakley Project Infrastructure Manager Public Affairs & Environment Manager Of
Slide 3: Board Members and Management Team
BAUXITE RESOURCES LIMITED Board Members Management Team Daniel Tenardi – Managing Director Peter Bleakley – Chief Exploration Manager • Experienced mining executive (40 years) • Experienced geologist • 15 years bauxite mining and refinery experience • Exploration manager Luke Atkins – Executive Chai
Slide 4: Management Philosophy
BAUXITE RESOURCES LIMITED Management Philosophy Our Vision: “To be a sustainable generator of economic and social prosperity to all stakeholders through the responsible development of resources.” Our Mission: “To be a significant bauxite miner and alumina/aluminium producer.”
Slide 5: Resources
BAUXITE RESOURCES LIMITED Resources Darling Range Project: • Currently have 55 tenements • Three (3) are granted • The tenements cover an area of 11,000 square kilometres (km²) of extensive bauxite rich laterites. Kimberley Project: • Currently have 3 Exploration Licenses • Covering approximately 1,
Slide 6: Darling Range tenements Google Earth image
Google Earth image showing areas covered by BRL’s Darling Range tenements (in application yellow, granted red)
Slide 7: Kimberley tenements Google Earth image
Google Earth image showing areas covered by BRL’s Kimberley tenements
Slide 8: The Project
BAUXITE RESOURCES LIMITED The Project Stage 1 : The exportation of bauxite (DSO) to customers at a rate of 3Mt per annum Stage 2 : 1. Carry out a feasibility study to construct and operate an alumina refinery with an ultimate output capacity of 800,000 tonne per annum. 2. Conduct a feasibility study
Slide 9: Mining Methodology
BAUXITE RESOURCES LIMITED Mining Methodology • Grade control drilling will be carried out on a 25m x 25m pattern. • Topsoil containing seed bearing material is removed and stockpiled ready for rehabilitation of the mined out pit. • Overburden is removed and stockpiled ready for rehabilitation. • Min
Slide 10: Mining Methodology
BAUXITE RESOURCES LIMITED Mining Methodology • Mined ore is stockpiled behind mining prior to loading onto roadtrains for delivery to the rail siding. • When the pit is mined out, mining faces are contoured using dozers leaving gentle undulations. Overburden and topsoil is returned and the whole are
Slide 11: Mining Methodology
BAUXITE RESOURCES LIMITED Mining Methodology BRL will use surface mining machines thereby eliminating drill and blast operations and significantly reducing fixed plant processing. Not only is the surface miner environmentally friendly, but it creates a flat mining floor that requires minimal road ma
Slide 12: Advantages of Darling Range Bauxite
BAUXITE RESOURCES LIMITED Advantages of Darling Range Bauxite Darling Range bauxite containing 32% extractible alumina (Al₂0₃) has a typical usage rate of feed and reagents as described in the chart below. Input Unit Rate Bauxite Tonne 3.5 Na0H (Caustic Soda) Kilogram 50 Ca0 (Lime) Kilogram 50 Flocc
Slide 13: Darling Range advantages
BAUXITE RESOURCES LIMITED • Lowest quartile alumina refinery cost producers in the world • Largest bauxite producing region in the world • 3 of the Darling Range refineries are in the worlds top 5 most cost efficient refineries • Low impurities associated with ore material - very low reactive silica
Slide 14: Darling Range refinery operating costs
BAUXITE RESOURCES LIMITED Darling Range European as high Refineries Operating as US$449 Costs Pinjarra - US$132 Wagerup - US$135 Worsley - US$135 Kwinana - US$158 Darling Range
Slide 15: Refinery Production Cost Comparison
BAUXITE RESOURCES LIMITED Refinery Production Cost Comparison 500 450 400 Production Cost per Tonne 350 300 250 (US$) 200 150 100 50 0 Selected Refineries
Slide 16: Aluminium Consumption in China
BAUXITE RESOURCES LIMITED Aluminium Consumption in China • The early stages of the surge in aluminium consumption in China was driven by infrastructure expenditure. • Although infrastructure will continue to drive aluminium consumption in China, urbanisation and new consumption habits among the Chin
Slide 17: Global Aluminium Consumption
BAUXITE RESOURCES LIMITED Global Aluminium Consumption Global Aluminium Consumption 2007 2018 1% 1% 1% 1% 4% 3% 4% 3% 4% China 4% 30% North America Europe 41% 16% 15% Asia Latin America Africa Middle East Oceania 16% 22% 20% CIS 14% MetalBulletin Research
Slide 18: Smelting Capacity 2007-2018
BAUXITE RESOURCES LIMITED Smelting Capacity 2007 - 2018 70 60 Supply Gap (15Mt) 50 Base Demand Mt 40 30 20 10 0 07 08 09 10 11 12 13 14 15 16 17 18 Year • Predicted growth demand for aluminium has identified a supply gap of 15Mt. • Bauxite Resources takes a long term view in planning it’s Projects a
Slide 19: Summary
BAUXITE RESOURCES LIMITED Summary BUSINESS CASE Direct Shipping Ore (DSO) – Stage 1 - Business case supported by increased bauxite demand - China to exhaust its local bauxite reserves in 10 years - Bauxite price reported - CIF Qingdao A$107 per tonne (further price increases forecast) Energy Sup
Slide 20: Thank You for your attendance
BAUXITE RESOURCES LIMITED Thank You for your attendance 21 November 2008
Bauxite Resources — Shareholder Meeting (November 2008) on 6ix