Iron Road Ltd · ASX:IRD
Iron Road — SA Exploration & Mining Conference 2016
30 slides from Iron Road's conference presentation, Dec 2, 2016
Slide 1: Welcome to the SA Exploration & Mining Conference
• Good afternoon Ladies & Gentlemen, it is a pleasure to present here today at the SA Exploration & Mining Conference… and I thank the organisers for the invitation to do so, as well as the generous support of the event sponsors. • Today I will discuss three of several partnerships that Iron Road ha
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This announcement contains certain statements with respect to future matters which may constitute "forward-looking statements". Such statements are only predictions and are. subject to inherent risks and uncertainties which could cause actual values, results, pe
Slide 3: Overview of the Central Eyre Iron Project
Before I talk about partnerships, allow me to give a very brief overview of the Central Eyre Iron Project • The Project is located on the Eyre Peninsula and provides for a complete mine to customer solution. … and consists of three major components, namely: • The mine and beneficiation plant at Warr
Slide 4: Mine, infrastructure corridor and deep sea port components
• The Mine comprises a large open pit, beneficiation plant, integrated waste landform and rail loadout facility • The Infrastructure Corridor comprises ~148km of standard gauge heavy rail and associated services such as power and water. • The deep sea port at Cape Hardy comprises two capesize berths
Slide 5: What makes this magnetite deposit different?
What makes this magnetite deposit so different to any other? • Firstly it is a Magnetite Gneiss, not a Banded Iron Formation as is the case for most magnetite deposits in Western Australia… and there is a lot of it- 3.7Bt in Ore Reserves (or a 4.5Bt Mineral Resource) • Being very coarse-grained it u
Slide 6: Major Project Facilitation and priority project status
The Central Eyre Iron Project: • Enjoys Major Project Facilitation from the Federal Government and is the only project of any kind in SA to do so (reaffirmed last month); • Is listed as a Priority Project for the nation by Infrastructure Australia – the only “Opportunity for growth” Project; and • T
Slide 7: Onto partnerships
Onto partnerships. • Iron Road has studied the CEIP over the past eight years. During this time, we have looked to who might be good partners to assist in the funding, building and operating tasks. • The first project partner I will introduce today is China Railway Group Limited (or CREC). 7
Slide 8: CREC agreement signed in Beijing
• An agreement with CREC was signed in April this year in Beijing that includes a 12 month Project Commercialisation Programme –to enable a Financial Close for CEIP to ultimately be achieved. This programme is progressing very well. • Importantly, pending a positive investment decision, CREC anticip
Slide 9: Iron Road chairman explains vision to dignitaries
• The occasion allowed the Iron Road chairman Dr Peter Cassidy the opportunity to explain Iron Road’s vision to various dignitaries. 9
Slide 10: Why CREC?
Why CREC? • CREC is the 7th largest SOE in China; • the largest infrastructure construction group in Asia; and • the second largest infrastructure construction contractor in the world based on total revenue… equivalent to about 1% of China’s GDP. 10
Slide 11: CREC built Beijing International Terminal 3
Some of you would have seen CREC’s work first hand • CREC designed and built the Beijing International Terminal 3, with a contract value of around USD$4B 11
Slide 12: CREC built the Qinghai-Tibet Railway Line
CREC recently completed construction of the Qinghai-Tibet Railway Line • Almost 2,000km total length, more than half of which is over 4,000m above mean sea level • Contract value about USD$5B 12
Slide 13: CREC built the Hangzhou Bay Bridge
And CREC designed and constructed the Hangzhou Bay Bridge • At 36km, it is the longest Sea Bridge in the world • Contract value of US$1.3B 13
Slide 14: CREC teams in South Australia
As well as having a permanent presence in Iron Road’s Adelaide Office, CREC has sent three specialist teams to South Australia relating specifically to the three major components of the CEIP. • These teams and the Joint Iron Road-CREC development team have acquainted themselves with local businesses
Slide 15: SCT Logistics
• … and SCT Logistics, being a couple of them. 15
Slide 16: Field visits to the proposed mine
• Various teams have conducted in-depth field visits to the proposed mine… 16
Slide 17: Infrastructure corridor
… infrastructure corridor… 17
Slide 18: Port site
oD i @ .. and port site. 18
Slide 19: The 'sleepy lizard trick'
…and when interest starts waning, particularly after lunch, we revert to the ever popular ‘sleepy lizard trick’. Always a sure winner! 19
Slide 20: Second partnership: Shandong Iron & Steel
The second partnership is with Shandong Iron & Steel, or ShanSteel… 20
Slide 21: Tripartite agreement signed in Jinan
A tripartite agreement was signed in Jinan between Iron Road, ShanSteel and CREC in April of this year. • The agreement commits the parties to co-operate and collaborate to enhance the long-term value of the CEIP; and • To evaluate a joint development strategy to advance the Project. 21
Slide 22: 30th anniversary of South Australia-Shandong relationship
The signing coincided with the 30th anniversary of the co-operative relationship between South Australia and its sister province Shandong. • Investment Attraction SA plays an important role in fostering this relationship and does an excellent job. 22
Slide 23: ShanSteel profile
ShanSteel is… • China’s seventh largest steel producer and a producer of iron ore in China and Africa, Shansteel brings both iron ore production and steel making technical expertise to both Iron Road and CREC. 23
Slide 24: Third partnership: Emerald Grain
The third partnership is with Emerald Grain, one of the largest grain marketing and supply chain businesses in Australia. • Emerald is a wholly owned subsidiary of Sumitomo, one of Japan’s most respected companies; • Emerald has an agreement with us to assess opportunities to utilise planned CEIP ra
Slide 25: Grain exports from the Eyre Peninsula
Iron Road operates in an established agricultural region. We have no doubt that the proposed port and rail infrastructure is capable of facilitating a modern, efficient and internationally competitive grain distribution and supply chain network – something the EP sorely needs. • More than 80% of gra
Slide 26: Benefits to regional communities and grain growers
One of Iron Road’s objectives is to bring broad and tangible benefits to the region’s communities and businesses. • Grain Producers SA annual surveys show that the highest priority for the past three years has been ‘Competition in storage and handling’… • … and the number 2 issue this year was ‘Grai
Slide 27: History of Cape Hardy as a deep sea port
However, the attractiveness of Cape Hardy as a deep sea port for the export of grain from the EP is not new and has been a favoured locality for some time. • A ‘Deep Sea Port Committee’ existed from at least 1936 and was disbanded in 1969 when the state government announced that a ‘Super Port’ would
Slide 28: Cape Hardy registration of initial interest
A registration of ‘initial interest’ process for Cape Hardy commences later this month, led by Regional Development Australia (RDAWEP). We want to hear from any individuals or businesses interested in utilising the proposed port for import or export purposes, so that we may engage with all potential
Slide 29: Appendix: CEIP Ore Reserve Summary
Appendix able 1 — CEIP Ore Reserve Summ Al,O; hen Metric Tonnes Fe Resource Classification (Mt) (%) Proved 2,131 15.55 Probable 1,550 14.40 Total 3,681 15.07 N SiO, (%) “53.78 58.58 53.70 (%) 12.85 12.64 12.76 The Ore Reserves estimated for CEIP involving mine planning is based on and fairly represe
Slide 30: Appendix: CEIP Global Mineral Resource
Appendix Table 2 — CEIP Global Mineral Resource - , Tonnes Fe Al,O3 P I (%) (%) Measured 2,222 15.69 53.70 12.84 0.08 4.5 Murphy South/Rob Roy Indicated 474 15.6 53.7 er 0.08 4.5 Inferred 667 16 53 12 0.08 43 Boo-Loo/Dolphin Indicated 796 16.0 53.3 12.2 0.07 06 Inferred 351 17 53 12 0.09 0.7 Total 4