Iluka Resources Limited · ASX:ILU
Iluka Resources — Technical Presentation (April 2004)
40 slides from Iluka Resources's technical presentation, April 2004
Slide 1: Iluka USA Operations Investor Site Visit
Iluka USA Operations Investor Site Visit April 2004
Slide 2: Overview of USA operations and customers
1 Overview of USA operations and customers 2 Florida operations 3 Georgia operations 4 Virginia operations 5 Growth opportunities 6 Concluding comments
Slide 3: USA Operations
USA Operations @ Muka sites Major rivers States Virginia - 115 | 1 Processing Plant Georgia - 60 1 Dry Mine - MC2 Florida Jacksonville Office ¢ 35 (Including Exploration 20) ~ Florida GCS - 100 1 Dry Mine - MC1 1 Processing Plant 2 Dry Mines - Old Hickory and Concord |
Slide 4: USA Operations - Introduction
USA Operations - Introduction 4 A period of considerable change: 4 return to profitability 4 major business improvements via MnM program, best practice and continuous improvement initiatives 4 end of dredge mining era in Florida 4 significant new capital investment, Georgia mine, Virginia optimisati
Slide 5: USA operations EH&S performance
USA operations EH&S performance 2002 2003 4 LTIFR 7.0 2.2 4 MTIFR 19.5 4.5 4 >/= Level 3 environmental 4 1 incidents 4 Significant improvement in all aspects of performance 4 Virginia lost time injury free in 2003 4 Recipient of Florida sustainability awards in 2003 4 Continued area of major focus
Slide 6: Americas Sales of Domestic Production - 2004
Americas Sales of Domestic Production - 2004 Americas Sales of Domestic Production - 2004 (USD 96,000,000) Domestic Export Zircon 65000 Mt 30000 Mt Rutile 34000 Mt - Ilmenite 315000 Mt - Leucoxene 17000 Mt -
Slide 7: USA production profile 2000 - 2003
USA production profile 2000 - 2003 300,000 250,000 200,000 k tonnes 150,000 100,000 50,000 0 00 01 02 03 00 01 02 03 00 01 02 03 Zircon Rutile Ilmenite Florida Virginia
Slide 8: USA contribution to Iluka Group production
USA contribution to Iluka Group production Rutile Zircon Ilmenite Virginia Virginia Florida 11% 14% 19% Florida Florida 8% 5% CRL CRL 7% 8% CRL WA WA WA 32% 49% 74% 73% 2003 Group production 2003 Group production 2003 Group production 142,000 tonnes 406,000 tonnes 1,451,000 tonnes
Slide 9: USA investment profile 2000 - 2003
USA investment profile 2000 - 2003 4 Virginia - Old Hickory 4 expansion project - US$32.4 million 2001/02 4 MnM projects - US$1.2 million 2003 4 Florida - Green Cove Springs 4 MC1 relocation - US$3.0 million 2002/03 4 MC1 upgrade - US$4.2 million 2003/04 4 other MnM projects - US$0.2 million 2003 4
Slide 10: USA financial performance 2000 - 2003
USA financial performance 2000 - 2003 A$m 2003 2002 2001 2000 Sales 106.4 105.5 134.4 120.7 EBITDA 13.1 12.1 33.0 32.2 D&A (15.9) (19.6) (23.8) (22.6) Profit (2.8)* (7.5) 9.2 9.6 * Includes impact of H1 2003 stock revaluation
Slide 11: Exploration opportunities
Exploration opportunities 4 Exploration focus is on additional ore near existing mines and discovery of new stand-alone mines 4 Expectation of increasing reserves and resources near existing mines in Virginia, Florida and Georgia to underpin 10 year plan – net increase in reserves in 2003 4 MnM prod
Slide 12: USA Reserves position @ end - 2003
USA Reserves position @ end - 2003 HM Ilmenite Zircon Rutile Ore In situ Grade Grade Grade Grade Reserves MT HM MT % % % % Florida/Georgia Proved 41.40 0.80 1.9 42 13 15 Probable 106.70 3.04 2.8 38 11 10 Total 148.10 3.84 2.6 39 11 11 Virginia Proved 15.30 1.50 9.8 66 18 - Probable 18.53 1.73 9.3 70
Slide 13: USA Resources position @ end - 2003
USA Resources position @ end - 2003 HM Ilmenite Zircon Rutile Material In situ Grade Grade Grade Grade Resources MT HM MT % % % % Florida/Georgia Measured 202.21 5.07 2.5 42 12 12 Indicated 184.48 4.10 2.2 41 12 12 Inferred 152.25 4.23 2.8 46 13 8 Total 538.94 13.40 2.5 43 12 11 Virginia Measured 60
Slide 14: Overview of USA operations and customers
1 Overview of USA operations and customers 2 Florida operations 3 Georgia operations 4 Virginia operations 5 Growth opportunities 6 Concluding comments
Slide 15: Florida
Florida Tallahassee Jacksonville Green Cove Springs Virginia Florida North America Miami Florida
Slide 16: Florida operations – Green Cove Springs
Florida operations – Green Cove Springs
Slide 17: Florida operations history
Florida operations history 4 1966 - Heavy Mineral Deposit discovered 4 1972 - Titanium Enterprises ownership 4 1979 - Titanium Enterprises ceased mining 4 1980 - Associated Minerals ownership 4 1992 - Name change to RGC Mineral Sands 4 1995 - Auxiliary mining commenced 4 1998 - Mobile Concentrator (
Slide 18: Florida operations capacity
Florida operations capacity 4 Dry mining 4 500 tonnes per hour 4 Mobile Concentrator 1 (MC1) 4 feed-rate of 450 tonnes per hour post-upgrade 4 Green Cove Springs dry mill 4 45 tonnes per hour of HMC
Slide 19: Florida operations – key operating challenges
Florida operations – key operating challenges 4 Achieve corporate targets (EH&S, profitability and Returns) 4 Consolidate performance after recent major changes 4 commissioned MC1 after MnM upgrades – February 2004 4 dredge decommissioned March 2004, 35 employees laid off 4 Implement continuous impr
Slide 20: Florida operations – meeting the challenges
Florida operations – meeting the challenges 4 MnM mining operations targets 4 20% reduction in costs and 20% increase in production 4 Results realised to date 4 96% of ideas implemented 4 76% of cost savings targets achieved 4 97% of production enhancements achieved 4 MnM processing targets 4 20% re
Slide 21: Overview of USA operations and customers
1 Overview of USA operations and customers 2 Florida operations 3 Georgia operations 4 Virginia operations 5 Growth opportunities 6 Concluding comments
Slide 22: Georgia operations – Lulaton
Georgia operations – Lulaton
Slide 23: Georgia operations history
Georgia operations history 4 2003 - MC2 permit appeal resolved and construction commenced in July 4 2003 - First modules delivered to site in October 4 2004 - Commissioning began in late December, water circulated through the plant and mining unit 4 2004 - First ore introduced into the system in lat
Slide 24: Georgia operations initial capacity
Georgia operations initial capacity 4 Dry mining rate 4 1,000 tonnes per hour 4 Mobile concentrator 2 (MC2) 4 feed-rate of 1,000 tonnes per hour
Slide 25: Georgia operations – key operating challenges
Georgia operations – key operating challenges 4 Consolidate all aspects of new operations at design rates 4 Achieve corporate targets (E,H & S, profitability and returns) 4 Implement continuous improvement program to improve capital productivity
Slide 26: Overview of USA operations and customers
1 Overview of USA operations and customers 2 Florida operations 3 Georgia operations 4 Virginia operations 5 Growth opportunities 6 Concluding comments
Slide 27: Virginia map
Virginia map Richmond 95 Petersburg 40 Dry Mill 85 Stony Creek Mines & Wet Mills Emporia Brink Deposit Richmond North Carolina Old Hickory VIRGINIA
Slide 28: Virginia operations – Stony Creek
Virginia operations – Stony Creek
Slide 29: Virginia operations history
Virginia operations history 4 1988 - Mineral sands discovered by Virginia state geologist 4 1991 - Completed acquisition of 72 leases 4 1994 - Pilot mine operated for 6 months 4 1995 - Dupont option to purchase ilmenite exercised 4 1996 - RGC Board approval 4 1997 - Old Hickory operations commenced
Slide 30: Virginia operations history
Virginia operations history Extreme Weather Conditions 4Snow 4Floods 4Hurricanes 4Ice storms 4Drought 4Tornados 4Temperature extremes 4 Lowest U+Th in the industry in both TiO2 products and zircon
Slide 31: Virginia operations capacity
Virginia operations capacity 4 Dry mining rate 4 330 tonnes per hour per mining unit 4 Old Hickory concentrator 4 spiral feed rate of 240-250 tonnes per hour after clay and oversize are removed prior to concentrator 4 Concorde concentrator 4 spiral feed rate of 240-250 tonnes per hour after clay and
Slide 32: Virginia operations – key operating challenges
Virginia operations – key operating challenges 4 Achieve Corporate targets ( E,H & S, profitability and returns) 4 Complete current MnM program – almost there 4 Commence continuous improvement program to further reduce costs and improve efficiency. Focus on improving capital productivity by increase
Slide 33: Virginia operations – meeting the challenges
Virginia operations – meeting the challenges 4 MnM mining operations targets 4 20% reduction in costs and 20% increase in production 4 Realised to date 4 82% of ideas implemented 4 86% of cost saving targets achieved 4 production targets achieved 4 MnM processing targets 4 20% reduction in costs and
Slide 34: Overview of USA operations and customers
1 Overview of USA operations and customers 2 Florida operations 3 Georgia operations 4 Virginia operations 5 Growth opportunities 6 Concluding comments
Slide 35: Continuous improvement program
Continuous improvement program CIP 2004 Functional Excellence Programs Cost Reduction 1% of Real Costs Revisit MnM Ideas Brainstorm additional ideas Reduce Equipment Damage Improve ops focus and efficiencies + Challenge/Invigorate Balance Sheet Improved Asset Efficiencies Interrogate Capital Require
Slide 36: Planned future operations
Planned future operations 4 Florida/Georgia Operations 4 MC1 continues at GCS 4 MC2 completes Lulaton, moves to Mission 4 access to other deposits being evaluated 4 Virginia Operations 4 Old Hickory completes, moves to Brink 4 Concord operations continue
Slide 37: Planned future operations
Planned future operations Florida / Georgia Virginia
Slide 38: Overview of USA operations and customers
1 Overview of USA operations and customers 2 Florida operations 3 Georgia operations 4 Virginia operations 5 Growth opportunities 6 Concluding comments
Slide 39: USA profit turnaround – key factors
USA profit turnaround – key factors 4 MnM benefits 4 A$5.8 million in pre-tax benefits from USA cost savings 4 MnM operational efficiencies 4mining – additional 65,000 tonnes of HMC produced 4processing – additional 80,000 tonnes of finished product 4 Relocation of MC1 and final commissioning of exp
Slide 40: USA operations outlook and key challenges
USA operations outlook and key challenges 4 Outlook 4 continuing improvement in EH&S performance 4 return to profitability in 2004 4 new mining operations at Lulaton, closure of the dredge 4 upgraded MC1 operation in Florida 4 first full year of expanded operations in Virginia 4 MnM projects virtual
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