Iluka Resources Limited · ASX:ILU
Iluka Resources — Technical Presentation (August 2012)
53 slides from Iluka Resources's technical presentation, Aug 1, 2012
Slide 1: Murray Basin Institutional Site Visit
Iluka Resources Limited Murray Basin Institutional Site Visit Woornack, Rownack, Pirro Deposits, Hamilton Mineral Separation Plant Hosted by Steve Wickham, General Manager, Australian Operations 31 July, 1 August 2012
Slide 2: Australian Operations Overview
Australian Operations Overview
Slide 3: Australian Operations Overview
Australian Operations Overview Murray Basin, Victoria • Major rutile and zircon production province • Separation plant - Hamilton • One operating mine - WRP • Basin economic life to 2023+ • Additional deposits - Balranald (PFS), Euston and others Western Australia • Processing hub for Jacinth-Ambros
Slide 4: Australian Operations Safety Performance
Australian Operations Safety Performance Stretch Target – 9.3 4 Stretch Target – 34.8
Slide 5: Safe Production Leadership
Safe Production Leadership Our Game Plan Values ACE Leadership Achieving Extraordinary Performance Far Edge of Chaos Extraordinary Leadership • Values Agreement • Relationships • Information • Trust and Support • Identity and Purpose • Accountability • Customer focus Mechanistic Management Close Clo
Slide 6: Australian Operations Integration
Australian Operations Integration 6
Slide 7: Eucla Basin, South Australia
Eucla Basin, South Australia Production (kt) 2011 Zircon 314 Rutile 56 Ilmenite 174 Investment ~$390m Sonoran 7
Slide 8: Jacinth-Ambrosia - Scope of Operation
Jacinth-Ambrosia - Scope of Operation • Current mine life 2020+ JA Mine • HMC production capability -120tph • Extendable post 2025 via satellite deposits • Accommodation village - 160 persons • 900m wide by 5 km long • Water transported from borefield 32 km to site • Flexible mine path - HM grade ap
Slide 9: Mine Path Flexibility
Mine Path Flexibility Flexibility to change ore mining schedule to align with market conditions Ability to alter mine plan to mine through different Options Indicative HMC (ktpa) HM grades of the deposit, thereby modifying production levels 1 620 3 547 Mining currently occurring through low grade pa
Slide 10: Mid West Operations, Western Australia
Mid West Operations, Western Australia Eneabba Mining Operation • 278km north of Perth, 149km south of Geraldton • Current mine life 2014+ (proved reserves) • Total Reserves (including Cataby) 13.3Mt of HM, containing: 54% Ilmenite, 16% rutile + zircon Narngulu Processing Operations • Located
Slide 11: Mid West - Scope of Operation
Mid West - Scope of Operation Eneabba Eneabba • Current mine life 2014+ (plans to extend for ~10 years) • Mining rate 1500tph+ • Wet concentrator capability 1200tph+ • HMC production capability 120tph • Provides ilmenite feed for SREP grade SR (140ktpa) • 25ktpa of natural rutile (95%TiO2) • Gas fir
Slide 12: Scope of Operations - Western Australia
Scope of Operations - Western Australia Narngulu Narngulu SR Narngulu Mineral Separation Plant • SR3 and SR4 kilns • Largest zircon production facility globally • SR4 currently idle since 2008 • Current operating life 2020+ • 100ktpa SREP SR capacity (SR3 only) • Treatment rate 1.2Mtpa HMC (expandab
Slide 13: South West Operations – Western Australia
South West Operations – Western Australia Production (kt) 2011 Zircon 10 Synthetic Rutile 195 Ilmenite 80 HMC 106 Investment SR2 maintenance outage $27m Tutunup South $30 13
Slide 14: South West - Scope of Operation
South West - Scope of Operation Tutunup South Screen plant, Concentrator and Office compound Tutunup South JA Mine • Current mine life 2016; Tutunup expected to follow • Site 1km wide by 3.5km long • Mining unit capability - 270tph Screen plant, Concentrator and Office compound • Wet concentrator ca
Slide 15: South West - Scope of Operation
South West - Scope of Operation North Capel North Capel • Separation mill and 2 synthetic rutile kilns • SR2 is currently in operation • SR1 idled June 2009, planned restart Q4 2012 • Finished product is trucked 35km to Port • ~ 300kt of iron concentrate being exported • 160 Iluka employees 15
Slide 16: Murray Basin Overview
ILUKA Murray Basin Overview 16
Slide 17: Murray Basin
Murray Basin Production (kt) 2011 (3 mines, 2 concentrators – 1 of each from May 2012) Zircon 218 Rutile 225 Ilmenite upgradeable 99 X Investment Stage 2 (northern Murray $240m Port Basin) Mine Mineral separation plant Proposed mine site Heavy mineral deposit Iluka Tenements Mine Mineininrehabilitat
Slide 18: Woornack, Rownack, Pirro Deposits (WRP)
Woornack, Rownack, Pirro Deposits (WRP) Location • 130km from Mildura • 25km from Ouyen • 450km NW of Melbourne by road Ownership • Land – approx. 40% Iluka & 60% private landowners and State Government Mine site • Straddles the Calder Highway • 3 deposits to be mined, 6 pits in total 18
Slide 19: Northern Murray Basin Deposits, Victoria
Northern Murray Basin Deposits, Victoria Kulwin commenced mining June 2009 /completed June 2012 Mine Length Average width Average ore (km) (m) thickness (m) Woornack 16.5 115 – 130 5-6 Rownack 8 50 - 85 2-4 Pirro 10.5 70 – 90 4-5 Woornack, Rownack, and Pirro mine (WRP) mining commenced Oct 2011 19
Slide 20: WRP Site
WRP Site Looking South June 2012 Pirro Pit Woornack Pit TSF MUP & ROM Concentrator & office complex Site access road Calder Highway 20
Slide 21: Safety Performance
Safety Performance ILUKA OL ——— Lost Time Injuries and Frequency Rate Department: Kulwin Mining and Processing MBS2 22.22 29 Total Recordable Injury Frequency Rate Department: Kulwin Mining and Processing MBS2 Area: Northern Murray Basin Mining Department: Kulwin Mining and Processing MBS2 4 July 20
Slide 22: WRP Labour Distribution and Diversity
WRP Labour Distribution and Diversity • Full time employees at WRP - 179 (Iluka 66, Watpac 113) • Indigenous employees - 5 (3 apprentices) • Female employees - 14 (8% of workforce) 22
Slide 23: WRP Timeline
WRP Timeline 2008, Nov EES approved 2010, Mar Mining Licence gained 2011, Sep Clearing & grubbing of vegetation commenced 2011, Oct Top & sub soil stripping for mining commenced 2011, Oct Commencement of overburden mining in Pirro pit 2012, Jan Mining commenced in Woornack pit 2012, Feb Mining & sto
Slide 24: WRP - Successful Project Start-up
WRP - Successful Project Start-up • Development capital $96 million (Budget $99.2m) • Expected mine life 1st half 2015 • Average HMC Production ~ 490ktpa • Annual production ~ 170kt rutile / ~ 110kt zircon / ~ 80kt ilmenite • WRP also produces significant volumes of additional less altered primary (
Slide 25: WRP Scope of Operation
WRP Scope of Operation • Three WRP deposits to be mined WRP Processing Facility & TSF • Average dewatering rate of 18 ML/d (5 to 36ML/d) • Mining unit plant out of pit: 500tph • Wet concentrator: 250tph • HMC production: 60tph • Water transported from GWM pipeline to site 7km • Mains power • HMC tra
Slide 26: Non Magnetic Heavy Mineral Concentrate (HMC)
Tailings Storage Facility (TSF) Non Magnetic Heavy Mineral Concentrate (HMC)
Slide 27: Operations - Mining
Operations - Mining • Mine 3.5 million tonnes of ore and 8.81 million cubic metres of waste per annum • Strip ratio - 9.4 • Scrapers on waste removal and truck and digger fleet primarily on ore • Planned area disturbed by mining and infrastructure – 1,330ha (incl. 205ha of native vegetation) • Lengt
Slide 28: Operations – Blending Ore
Operations – Blending Ore Pirro ore Woornack West Pirro ore Mining Unit Plant Woornack East • Ore mined in discreet 100m long in pit blocks and sent to ROM as a specific parcel • Single Pirro stockpile (lower HM & higher clay) & two Woornack stockpiles (higher HM & lower clay) • Ore loaded into mini
Slide 29: Operations - Processing
Operations - Processing MU18- Mining Unit Plant Apron Drum Scrubber Feeder Trommel ROM Grizzly Feed Hopper Wet Concentrator Plant WHIMS PCP WCP Thickener Building Mining Building Building Contractor HMC stocks Workshop MU10 29
Slide 30: Operational Performance: Concentrator Utilisation
Operational Performance Concentrator run time WRP Concentrator Utilisation 100% 80% Utilisation % 60% 40% Actual Utilisation 20% Planned Utilisation 0% 01- 08- 15- 22- 29- 05- 12- 19- 26- 03- May- May- May- May- May- Jun- Jun- Jun- Jun- Jul- 12 12 12 12 12 12 12 12 12 12 Date 30
Slide 31: Groundwater Dewatering and Infiltration
Groundwater Dewatering and Infiltration • 28% of mined material below water table • 244 dewatering bores to be installed during life of project • Average bore depth 50m • On average 25 bores active at any one time • Groundwater hyper saline with pH of 3.8 • Surplus water pumped to Pirro pit for infi
Slide 32: Murray Basin Indicative Cash Costs of Production
Murray Basin Indicative Cash Costs of Production Approximate annual total Murray Basin cash costs of production (WRP & Hamilton MSP) ~ $160 million p.a. 32
Slide 33: Murray Basin Exploration
ILUKA Murray Basin Exploration 33
Slide 34: Murray Basin 2012 Exploration Focus
Murray Basin 2012 Exploration Focus • Discovery of economically recoverable HM strandlines • Shallow depths and closer to existing projects / infrastructure • Around existing resources to define remaining potential e.g. Balranald/Nepean, Douglas district • Investigating option value with WIM deposit
Slide 35: Focus Areas – Greenfields
Focus Areas – Greenfields Gold Fields JV Shallower portions of NBM and new tenements Western Basin Goschen WIM Central Basin S.A and VIC. Southern Basin Balmoral and Douglas region Gippsland Basin Otway Basin 35
Slide 36: Focus Areas – Brownfields
Focus Areas – Brownfields Penarie (West B/Nepean) Kulwin / WRP Douglas district 36
Slide 37: Exploration Rehabilitation
Exploration Rehabilitation • Drilling completed at West Balranald in conservation reserve in 2009 • Rehab photos taken late 2011 showing abundant regrowth of native vegetation 37
Slide 38: Murray Basin Mineral Separation Plant - Hamilton
Murray Basin Mineral Separation Plant - Hamilton 38
Slide 39: Hamilton MSP – Scope of Operation
Hamilton MSP – Scope of Operation • Plant designed for 30 year life • Plant capacity 700 ktpa • Production – Zircon – ~220 ktpa – Rutile – ~ 225 ktpa – Saleable Ilmenite – ~100 ktpa • 185 ML per annum of reclaimed water used (rather than potable water) • Operations – 80 employees (residential) • 40
Slide 40: Hamilton MSP – Scope of Operation
Hamilton MSP – Scope of Operation • HMC delivered from northern Murray Basin via train • Finished product trucked to Portland for export • Capacity to process J-A as a blend with MB HMC • HMC delivered to Hamilton via rail (8 hour one way travel) • Finish product transported by truck 90 km to Portla
Slide 41: MSP Separation Process
MSP Separation Process • MSP separates minerals based on differences in physical properties – Zircon (non-conductor non-magnetic) – Rutile (conductor non-magnetic) – Leucoxene (conductor non-magnetic ) – Cassiterite (conductor non-magnetic) – Ilmenite (conductor magnetic) – Monazite (non-conductor m
Slide 42: MSP – Electrostatic and Magnetic Separation
MSP – Electrostatic and Magnetic Separation • Wet processes include screening, attritioning, gravity concentration, elutriation and filtering • Dry processes include drying, electrostatic separation (on the basis of susceptibility to conductivity) • Magnetic separation (separates on basis of suscept
Slide 43: Operations – Separation
Operations – Separation HM C • Hamilton MSP is divided into seven circuits T a ils FPC • Gravity, electrostatic and S lim e s magnetic separations are repeated throughout the plant to achieve quality targets M o na PDC Ilm e nit e NC Cond ZPC RWC T in Z T a ils ZWC NC Cond Z M a gs ZCC RCC Z irc o n
Slide 44: Finished Products
Finished Products • Finished products from Hamilton MSP: – zircon premium – zircon standard – rutile 95 – rutile 92 – upgradeable ilmenite – tin 44
Slide 45: Product recoveries: Operational Performance
100 50 55 60 65 70 75 80 85 90 95 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Product recoveries Mar-11 Jun-11 Sep-11 Dec-11 Rutile Recovery Mar-12 Jun-12 Sep-12 Operational Performance Dec-12 100 50 55 60 65 70 75 80 85 90 95 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Zircon Recovery Mar
Slide 46: Production Flexibility Example: Hamilton MSP Capacity
Production Flexibility Example: Hamilton MSP Capacity • Potential to add J-A HMC to feed blend to fill zircon circuit capacity Hamilton MSP Capacity 800 700 Rutile capacity 600 J-A Supplemental feed 500 Kt pa 400 300 Move to a single MB concentrator 200 Balranald move 100 0 2011 2012 2013 2014 2015
Slide 47: Supplementary Slides
ILUKA Supplementary Slides 47
Slide 48: Murray Basin – Ore Reserves
Murray Basin – Ore Reserves MURRAY BASIN ORE RESERVE BREAKDOWN BY JORC CATEGORY AT DECEMBER 31 2011 Summary of Ore Reserves(1,2,3) for Murray Basin HM Assemblage (4) Ore In Situ HM HM Ilmenite Zircon Rutile Ore Reserve Region Tonnes Tonnes Grade Grade Grade Grade Category Millions Millions (%) (%) (
Slide 49: Murray Basin – Mineral Resources
Murray Basin – Mineral Resources MURRAY BASIN MINERAL RESOURCE BREAKDOWN BY JORC CATEGORY AT DECEMBER 31 2011 Summary of Mineral Resources(1,2,3) for Murray Basin HM Assemblage (4) Material In Situ HM HM Ilmenite Zircon Rutile Mineral Resource Region Tonnes Tonnes Grade Grade Grade Grade Category Mi
Slide 50: WRP – Ore Reserves
WRP – Ore Reserves WRP PROJECT ORE RESERVE BREAKDOWN BY DEPOSIT AND JORC CATEGORY AT 31 DECEMBER 2011 Summary of Ore Reserves(1,2,3) for WRP Project HM Assemblage (4) Ore InSitu Ilmenite Zircon Rutile Ore Reserve HM Clay District Deposit Tonnes HMTonnes Grade Grade Grade Category Grade (%) Grade (%)
Slide 51: WRP – Mineral Resources
WRP – Mineral Resources WRP PROJECT MINERAL RESOURCE BREAKDOWN BY DEPOSIT AND JORC CATEGORY AT 31 DECEMBER 2011 Summary of Mineral Resources(1,2,3) for WRP Project HM Assemblage (4) Mineral Material InSitu Ilmenite Zircon Rutile HM Clay District Deposit Resource Tonnes HMTonnes Grade Grade Grade Gra
Slide 52: 2011 Physical & Financial Summary – Murray Basin
2011 Physical & Financial Summary – Murray Basin 52
Slide 53: Iluka Resources Limited
Iluka Resources Limited For further information, please contact: Robert Porter General Manager, Investor Relations robert.porter@iluka.com +61 3 9600 0807 / +61 (0) 407 391 829 www.iluka.com
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