Slide 1: Tenke Fungurume Project Update
Tenke Fungurume Project Update
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward- looking statements are
Slide 3: Tenke Fungurume
Tenke Fungurume “…one of the largest/highest grade undeveloped copper/cobalt resources in the world today”
Slide 4: Ownership and Funding
Ownership and Funding • 24.75% Tenke • 17.5% Gecamines • 57.75% Freeport – operator • 70:30 Freeport/Lundin funding obligations
Slide 5: A World Class Copper District
A World Class Copper District Less than half the concessions explored Airstrip Goma Fwalu Kwatebala Deposit Known copper mineralization Deposits Deposits Tenke Village Fungurume Village Rail Line (to Kolwezi) TFM Camp Pumpi High Voltage Power Line Deposits
Slide 6: Development and Exploration Priorities
Development and Exploration priorities 1 2007 New Drill Targets 2007 2007 planned drill oxide holes target zone 8 Ditoma Mine Series outcrop 1 Mt 7% Cu Drill hole Sefu 3 Mt 2% Cu Initial Plant Site Fwaulu 1 Kwatebala 2 Shinkusu Mwandinkomba 3 4 Mt 4% Cu 4 Mt 2.5% Cu Fungurume Tenke Goma Dipeta Syncl
Slide 7: Copper Clearings
Copper Clearings Fungurume outcrops Tenke outcrops
Slide 8: Mineral Resources
Mineral Resources Measured and Indicated: 235 million tonnes 3.01% copper / 0.31% cobalt Inferred: 264 million tonnes 2.60% copper / 0.19% cobalt Resources do not include last 20 months of drilling *NI 43-101 June 2006, Mintec and Nilsson Mine Services
Slide 9: Mine Plan and Resource Expansion
Mine Plan and Resource Expansion • 40 year mine plan • Kwatebala, Fwaulu and Goma deposits developed first • Open pit - over all strip ratio 3.1:1 • First 10 years grade 4.57% copper and 0.37% cobalt • Prove up new high grade for expansions with aggressive drilling program > 50,000 m/year
Slide 10: Development Plans
Development Plans •Initial phase – 115,000 tpa Cu cathode / 8,000 tpa cobalt •Construction in progress – direct cost $US900 million •Production 1st half 2009 •Cash costs (US $0.19) /lb cu incl. US $10/lb cobalt credit •Objective to expand to + 400,000 tpa copper
Slide 11: Typical Katangan Series (Kwatebala Deposit)
Typical Katangan Series (Kwatebala Deposit) South North SDB - Upper Ore Body RSC - Middle Ore Body RSF - Lower Ore Body
Slide 12: Mining method
Mining method Mining machine – training underway with prestripping
Slide 13: Process
Process Copper/ Cobalt Ore From Mine Grinding Whole Ore Agitated Leaching Tailings Thickening and First and Second Neutralization - Counter Current Stage Impurity Residue to Decantation Removal disposal Cobalt Hydroxide Intermediate Solvent Extraction Precipitation product to Market Copper cathode t
Slide 14: Regional Infrastructure
Regional Infrastructure Construction Airstrip Plant Village Access Road Waste Dump Tailings Pond 220 KV Power Line Fwalu Pits Kwatebala SNEL Pit Power Substation TFM Camp Goma Pits SNCC Railway 150 KV Power Line National Road Each grid line = 2km 14
Slide 15: DRC's Latent Power Supply
DRC’s Latent Power Supply • Four hydro generating plants • Surplus power being exported at low rates • Investing in reliability • Restarting latent capacity
Slide 16: Transportation
Transportation A key issue … • Currently + 200,000 tpa freight south from Katanga with minimal backhaul • Tenke - 125,000 tpa product down, 130,000 tpa consumables up • Local roads being upgraded by mining companies • Rail improvements critical to expansion plans
Slide 17: Location and Transport Options
Sen i; 2776km View} Me ‘e, 67 Durban 3496 km Dar Es > > Salaam 5 2414 km 2>== Road Option ~~ Rail Option Location and Transport Options Oy
Slide 18: Corporate Social Responsibility
Corporate Social Responsibility Tenke Fungurume • Equator Principles training programs • Voluntary Principles - Security and Human Rights • Applicable IFC guidelines • Freeport/Phelps Dodge corporate standards • Extractive Industries Transparency Initiative • TFM social programs managed by NGO’s
Slide 19: Social Key Issues
Social Key Issues • Involuntary Displacement/Resettlement • Community Development Community meeting in Mulumbu • Employment/Economic Opportunities • Social programs managed by NGO’s • Review of contracts
Slide 20: TFM Social Programs
TFM Social Programs
Slide 21: TFM Social Programs
TFM Social Programs • +30 community water wells • Oxen, seed and agricultural programs • Malarial abatement • New medical clinic • Three schools now in operation • +20 micro enterprise programs functioning • Training and offshore education for Congolese
Slide 22: Environmental Key Issues
Environmental Key Issues • Biodiversity/Cu-Co Flora • Environmental Management Plan • Maintaining high standards
Slide 23: Current Activities
Current Activities • Design 60%, Procurement 75% complete • Construction 15% complete • Civil works well advanced, concrete started, platework started, some steel on site • Continuous miner training, pre-stripping • Half the drill rigs on new areas
Slide 24: Construction Progress
Construction Progress
Slide 25: Construction Progress
Construction Progress
Slide 26: Construction Progress
Construction Progress
Slide 27: Trends in the DRC
Trends in the DRC …the majority of DRC’ s important copper assets advancing with high industry standards
Slide 28: For the DRC
For the DRC •More than 50% of the cash flow Freeport/ DRC Govt goes to the DRC and Gecamines Lundin 40% 49% •Including power, rail and other indirect revenues, more than 60 % of the value of Tenke Fungurume accretes to the DRC •Tenke Fungurume will contribute significantly to the economy and rebuild
Slide 29: For Lundin Mining Shareholders
For Lundin Mining Shareholders 24.75% of world’s largest new copper district Well funded, Strong Project Extraordinary Economics upside potential Low cash costs
Slide 30: Tenke Fungurume
Tenke Fungurume
Slide 31: Thank You