Merafe Resources Limited · JSE:MRF
Merafe Resources — Corporate Update (November 2008)
32 slides from Merafe Resources's corporate update, Nov 26, 2008
Slide 1: Lion Ferrochrome Welcomes Merafe Resources Investors
Lion Ferrochrome Welcomes Merafe Resources Investors Limpopo, South Africa 26 November, 2008
Slide 2: Disclaimer
Disclaimer The views expressed in this presentation/document contain information obtained from publicly available sources that have not been independently verified. Xstrata makes no representations, or express or implied warranty as to the accuracy, completeness or reliability of the information, no
Slide 3: Xstrata - Merafe PSV production capacity of ca. 1.9 Mt ferrochrome
Xstrata - Merafe PSV production capacity of ca. 1.9 Mt ferrochrome (post-Lion) Messina Thohoyandou Wonderkop Windhoek Giyani Moz. Design Capacity 510 Kt FeCr Botswana Slag Recovery 30.0 Kt FeCr LIMPOPO PROVINCE Pietersburg Gaborone Lebowakgomo Employees 750 Nylstroom Siyabuswa Rustenburg Mmabatho Pr
Slide 4: Project Synopsis
Project Synopsis Largest single-phased ferrochrome expansion in the world Description 360ktpa Greenfield ferrochrome production Rationale Lowest cost (opex and capex) ferrochrome expansion Capex ZAR1,670 million including the Helena Mine Technology Premus (Xstrata proprietary) Location Steelpoort, L
Slide 5: Lion addresses ALL the key challenges facing SA Ferrochrome
Lion addresses ALL the key challenges facing SA Ferrochrome Escalating energy costs Lowest specific energy consumption ca. 37% better than nearest rival Increased fine ore 750,000 tonnes pelletising capacity Skills shortages In-house training centre established Lagging logistics Proximity to Maputo
Slide 6: Sustainable competitive advantage
Sustainable competitive advantage Close to 100% scale-up of Lydenburg operation 100% low-silicon production • Key source of competitiveness • Xstrata proprietary technology • Difficult to emulate and/or retrofit • High-skill level required for operation
Slide 7: Premus is the superior technology choice
Premus is the superior technology choice Chrome operations have access to a suite of technologies Conventional Process 13 of the 20 furnaces in the PSV are conventional furnaces Lowest capital cost per ton of alloy Outokumpu Process (Bokamoso) Basis for the 2 Boshoek Chrome furnaces Acco
Slide 8: Efficient use of energy is a key source of competitive advantage
Efficient use of energy is a key source of competitive advantage Lion will place the PSV in a sustained cost leadership position Specific Energy Consumption (MWh/T) Energy Cost/ Ton Alloy (Indexed) 1.3 5 Lowest energy cost per ton Xstrata is a signatory of the 4.8 1.24 DME’s Energy Efficiency accord
Slide 9: Premus delivers competitive chrome recovery and coke consumption
Premus delivers competitive chrome recovery and coke consumption Lion uses anthracite from Xstrata’s own captive mine Chrome Recovery Coke Consumption 70% 60% 60% 60% 50% Consumption/t 40% 30% 20% 20% 10% 0 0% C onventional Outokumpu DC Arc Premus
Slide 10: Fairly complex process
Fairly complex process SCREENING RAW MATERIALS PELLETIZING BENTONITE DRYING MILLING ANTHRACITE ORE HOT GAS MIXING BATCHING COAL ROASTING LUMP MILLING REDUCTANTS USABLE OFF GAS CHAR, COKE, ANTHRACITE PRE-HEATING FLUXES BATCHING Complicated Hot loading GAS SCRUBBING system GRANULATION SLAG LUMPY CRUSH
Slide 11: The construction phase
….The construction phase 8,700 tonnes steel 60,000 cubic meters concrete 29 kilometers pipe work 2,800 contractors on site (peak) 6 million man-hours LTIFR of 1.33 One Project Management Team!
Slide 12: Xstrata unique project management approach
Xstrata unique project management approach Entire project managed by in-house project management team Wherever possible, fabrication, erection and civil work conducted in-house Team has an exemplary track record and have managed all of Xstrata Alloys’ major projects, including the Wonderkop smelter,
Slide 13: Construction photo 28/10/2004
es ae 28/10/2004
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Slide 15: Construction photo 28/1/2005
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Slide 16: Construction photo 15/4/2005
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Slide 17: Construction photo 17/5/2005
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Slide 19: Construction photo 07/9/2005
07/9/2005
Slide 20: Construction photo 03/10/2005
03/10/2005
Slide 21: Construction photo November 2005
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Slide 22: Construction photo 16/01/2006
16/01/2006
Slide 23: Construction photo 26/4/2006
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Slide 24: Construction photo 28/7/2006
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Slide 25: Construction photo 28/7/2006
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Slide 27: HSEC: Current Strategies and Operational Performance
HSEC Current Strategies and Operational Performance
Slide 28: Safety Management Plan
Safety Management Plan Cardinal Rules Safety system scorecard weekly on leading indicators MSO appointed per department Standards made known by MSO and via scorecard Preshift Meetings with scheduled safety topics Re-enforced safe behavior positively via scratchies Train individuals on safety by rota
Slide 29: Current Safety Performance
Current Safety Performance 2007/2008 18 Month Running LTIFR Linear (LTIFR) 6 5 4 3 2 1 0 ay ay g ct n n ov ch ch ril ril M b M b pt l ec 07 Ja 6 Ju Au Ju Ja Fe Fe O Ap Ap 0 Se M M N ar ar D n- - ec D
Slide 30: Skills and community development integral to sustainability
Skills and community development integral to sustainability Community forum for 18 communities established A skills development centre has been established, which facilitates the following • A venue and resource to develop the skills of the local communities. • To ensure a continuous availability of
Slide 31: Other SHEQC points
Other SHEQC points Health • Continued push on Wellness Campaign Environmental • Managed via E-Scorecard which is aligned to ISO 14000 Quality • Managed via the Q-scorecard that is aligned to ISO 9002:2000 Community • Various projects via CSD sponsorship • Over 59% BEE spend • Creation of BEE partner
Slide 32: Focus on Product Quality-SPC
Focus on Product Quality-SPC Si Control An example of Statistical Process Control results (SD=0.3) 3 .5 3 UL 2 .5 2 LL 1 .5 1 0.5 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76