Anglo American plc · LSE:AAL
Anglo American — Namdeb — Corporate Update (March 2006)
61 slides from Anglo American's corporate update, Mar 29, 2006
Slide 1: Namdeb Operations
On Diamonds We Build Namdeb Operations 29 March 2006 Presented by: Chris Sivertsen General Manager NAMDEB O N D IAMONDS WE B UILD
Slide 2: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredg
Slide 3: What is Namdeb? A collection of Mines
On Diamonds We Build What is Namdeb? A collection of Mines ETOSHA PAN Republic of Northern Areas SPERRGEBIET Pocket Beaches Mining Orange River Area 1 Mines Atlantic 1 NAMDEB O N D IAMONDS WE B UILD
Slide 4: What is Namdeb? A World Class Placer deposit
On Diamonds We Build What is Namdeb? … on a World Class Placer deposit NAMDEB O N D IAMONDS WE B UILD
Slide 5: Where did the diamonds come from?
On Diamonds We Build Where did the diamonds come from? JOHANNESBURG VAAL VAAL UPINGTON ORANGE ORANGE KIMBERLEY ORANJEMUND OO RRA ANN GG EE NAMDEB O N D IAMONDS WE B UILD
Slide 6: History
On Diamonds We Build History • First Diamond found in 1908 by Zacharias Lewala • Extensive Mining by 1912, around Luderitz • CDM formed in 1920 • Focus around Oranjemund from 1934 • Marine Mining first tested in 1960 • Namdeb created in 1994 • Over 80 million carats produced to date NAMDEB O N D IAM
Slide 7: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY , HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dred
Slide 8: Safety
On Diamonds We Build Safety 2005 ACHIEVEMENTS • 4 Million Fatality Free Man Shifts reached • 30% Reduction in Minor Injuries against 2004 • Retained triple NOSCAR status • Lowest ever LTI Severity rate NOSA NAMIBIA AWARDS • All 3 operations placed on the International top 100 list for world class SH
Slide 9: Safety - 20% reduction in lost time injuries
On Diamonds We Build Safety - 2 20% REDUCTION IN LOST TIME INJURIES 35 30 29 25 20 15 14 15 9 8 10 10 7 8 5 3 7 1 1 1 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 LTI LTI Target 2005 NAMDEB Fatalities O N D IAMONDS WE B UILD
Slide 10: Safety – Reduction in Lost Time Injury Frequency Rate
On Diamonds We Build Safety – 3 Reduction in Lost Time Injury Frequency Rate 0.70 0.60 0.60 0.50 0.40 0.35 0.30 0.32 0.23 0.23 0.20 0.20 0.20 0.18 0.10 0.07 0.17 GROUP AVERAGE 2005 = 0.22 0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 L.T.I.F.R. Target 2005 NAMDEB O N D IAMONDS WE B UILD
Slide 11: AIDS related deaths (ART benefit)
On Diamonds We Build AIDS RELATED DEATHS (ART benefit) 163 Employees and/or Life Partners now on ART 8 7 Namdeb Hospital 6 5 4 Deaths 3 2 1 0 2002 2003 2004 2005 NAMDEB O N D IAMONDS WE B UILD
Slide 12: Environmental
On Diamonds We Build Environmental ISO 14001 Audits – Namdeb to be recommended for certification to new ISO 14001: 2004 version Simplified Environmental Management System Pilot Study – Pocket Beaches site 2,3 and 4 selected Rehabilitation and Closure – Draft plans for Orange River Mines and Pocket B
Slide 13: Environmental - Skilpadberg Rehabilitation Trial
Environmental - 2 Skilpadberg Rehabilitation Trial On Diamonds We Build before after NAMDEB O N D IAMONDS WE B UILD
Slide 14: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredg
Slide 15: SBP Revenue Analysis by Area
On Diamonds We Build SBP Revenue Analysis by Area 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2006 2007 2008 2009 2010 MA1 excl MDP Marine Dredge Orange River Northern Areas Beach & Marine Midwater Atlantic 1 NAMDEB O N D IAMONDS WE B UILD
Slide 16: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredg
Slide 17: Production – Trend
On Diamonds We Build Production – Trend Namdeb Carat Production 2500.0 2000.0 Atlantic1 Midwater Carats '000 1500.0 Beach & Marine Northern Areas Orange River 1000.0 Marine Dredge MA1 excl MDP 500.0 0.0 08 09 10 02 03 04 05 06 07 99 00 01 NAMDEB 20 20 20 20 20 20 20 20 19 20 20 20 O N D IAMONDS WE B
Slide 18: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredging Proj
Slide 19: Continuous Improvement
On Diamonds We Build Continuous Improvement Longer life U 70 to U 90 accreted 1.3 m tons & 65 000 cts Total mineable accreted 2.4m tons & 115 000 cts 3 Plant Accreted Beaches NAMDEB O N D IAMONDS WE B UILD
Slide 20: Continuous Improvement - Plant Turnaround Strategy
On Diamonds We Build Continuous Improvement - 2 2 Plant Turnaround Strategy – Configure Process for Maximum Recovery – Optimise Plant Flow Sheet – Minimise Working Cost – Maintain a Skilled & Motivated Team NAMDEB O N D IAMONDS WE B UILD
Slide 21: Continuous Improvement - Elizabeth Bay Mine Reconciled MCF
On Diamonds We Build Continuous Improvement - 3 Elizabeth Bay Mine Reconciled MCF 1.40 Focus group initiated 1.20 1.00 0.80 0.60 0.40 Mine Call Factor Focus Group 0.20 0.00 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 NAMDEB O N D IAMONDS WE B UILD
Slide 22: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredg
Slide 23: Strategic Business Planning
Strategic Business Planning JUNE 2005 SBP PRODUCTION PROFILE On Diamonds We Build 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2 Plant Dump 3 Plant 3 Plant Dump 4 Plant 4 Plant Dump PTF PTF Dump Dredge RTR Pocket Beaches Marine Dredge Daberas Sendelings EBay Fluvia
Slide 24: Declining Land Resource
On Diamonds We Build Declining Land Resource June 2004 SBP Carat Profile Blue Sky 2200 Most Likely 2000 Base Case 1800 Carat Production ('000) 1600 30.7 1400 20.5 1200 1000 16.1 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Years NAMDEB O
Slide 25: Where are our Projects?
On Diamonds We Build Where are our Projects? Elizabeth Bay DOUGLAS BAY MINING LICENCE Pocket Beaches LÜDERITZ ELIZABETH BAY MINE ELIZABETH BAY MINING LICENCE Sendelingsdrift BOGENFELS MINING LICENCE Bogenfels Arch Inshore Projects MINING Dump Retreatment AREA No1 MINING Sendelingsdrif ER LICENCE ORA
Slide 26: Average Stone Size varies
Average Stone Size varies 0.25 On Diamonds We Build HOTTENTOTS BAY 0.15 0.25 0.1 .. .. 0.3 LUDERITZ 0.2 Elizabeth Bay 0.4 0.4 0.4 Chameis 0.5 0.6 1.0 - 2.0 0.8 ORANJEMUND 1.0 NAMDEB O N D IAMONDS WE B UILD
Slide 27: Where do we focus?
On Diamonds We Build Where do we focus? Bubble Size Represent Capital Investment (N$) AMV 2 Do it ! Invest to reduce risk Reward Sendelings Off-Beach System AMV 3 WOMS(Dredge2) Share? Park Risk NAMDEB O N D IAMONDS WE B UILD
Slide 28: Historical Recoveries from Land and Sea
On Diamonds We Build Historical Recoveries from Land and Sea TOTAL CARATS MINED SPERRGEBIET & COAST 1908 - 2003 LAND 70.4 m SEA 8.2 m SEA PRODUCTION 1962 - 2003 Atlantic 1 5.8 m MDC Namdeb 1.7 m Midwater 0.8 m NAMDEB O N D IAMONDS WE B UILD
Slide 29: Focus moving from Land to the Sea
On Diamonds We Build Focus moving from Land to the Sea June 2004 SBP Carat Profile Base Case 2200 2000 Land Marine 1800 Carat Production ('000) 1600 1400 1200 June 2004 SBP Carat Profile 1000 Most Likely 800 2200 2000 Land 600 Marine 400 Carat Production ('000) 1800 200 1600 0 1400 2004 2005 2006 20
Slide 30: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredg
Slide 31: Sampling & Prospecting
On Diamonds We Build Sampling & Prospecting EXPENDITURE – 1994 TO 2005 Today’s Money LAND SEA 250 200 N$ MILLION 150 100 50 0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 NAMDEB O N D IAMONDS WE B UILD
Slide 32: Sampling linked to SBP
Sampling linked to SBP JUNE 2005 SBP PRODUCTION PROFILE On Diamonds We Build 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2 Plant Dump 3 Plant 3 Plant Dump 4 Plant BG36 4 Plant Dump PTF DUMPS PTF Dump Dredge RTR WALL OT Pocket Beaches A L FO VI Marine Dredge FLU Da
Slide 33: Sendelingsdrif Bulk Sample (2007)
On Diamonds We Build Sendelingsdrif Bulk Sample (2007) * INDICATED RESOURCE * * 315 000 cts * * INFERRED RESOURCE * 2006 Sample pits 100 000 cts * * * * NAMDEB O N D IAMONDS WE B UILD
Slide 34: Pocket Beach Site Extension
On Diamonds We Build Pocket Beach Site 2 Extension Mega trench complete • Theft during treatment Drilling confirms gravels extension • Cementation in west to south and west Resource extension confirmed north and south NAMDEB O N D IAMONDS WE B UILD
Slide 35: Sampling linked to SBP
On Diamonds We Build Sampling linked to SBP - 2 JUNE 2005 SBP PRODUCTION PROFILE 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2 Plant Dump 3 Plant 0.3 0 0.85 0.61 0.56 0.69 0.23 Resource Estimation 3 Plant Dump 4 Plant 0 0.36 1.24 0.56 1.97 0.12 0 (Geostatistical A
Slide 36: Agenda
On Diamonds We Build Agenda 1. WHAT IS NAMDEB? • Location • Deposit • History 2. SAFETY, HEALTH and ENVIRONMENTAL 3. FINANCIAL TRENDS 4. PRODUCTION 5. CONTINUOUS IMPROVEMENT 6. STRATEGIC BUSINESS PLAN 7. EXPLORATION and SAMPLING 8. STRATEGIC PROJECTS • Capital program • Pocket Beaches • Marine Dredg
Slide 37: Strategic Projects: Capital Program 2006
On Diamonds We Build Strategic Projects CAPITAL PROGRAM FOR 2006 IS N$956m Exploration, 45 Inshore, 21 Strategic Projects, 12 No. 3 Plant Upgrade, 93 Other, 50 Atlantic 1 Dredging Trial, Geological 400 Sampling Recovery, 28 Accommodation Upgrade, 35 ORBIT, 21 Pocket Beaches, 136 Earthmoving, 115 NAM
Slide 38: Pocket Beaches site map
SITE 11 & 12 On Diamonds We Build Bogenfels Arch DREIMASTER BAY LUDERITZ BUNTFELDSCHUH ORANJEMUND Plum Pudding Island Sinclair BAKERS BAY Seal Colony CAMP Island Roast Beef Islets DERNBERG AT LA GREEN PRECIPICE NT NORTH ROCK SITE 3 & 4 IC Plant 1 Location Site 2 SOUTH ROCK SITE 2 Chamais Gate OC 2 3
Slide 39: Pocket Beaches Site – new concept
On Diamonds We Build Pocket Beaches Site 2 – new concept NAMDEB O N D IAMONDS WE B UILD
Slide 40: Site Project Concept
Site 11 & 12 - Project Concept Cut-off Wall On Diamonds We Build Stripping : 21.5 million tons 5 Gravel 10 15 : 1.1 million tons 2.5 2.5 2.5 Carats : 365 000 5 5 2.5 2.5 5 7.5 10 0 C 2.5 2.5 0 0 B 7.5 5 2.5 2.5 5 10 2.5 7.5 10 0 7.5 A 5 0 7.5 2.5 5 0 7.5 2.5 2.5 2.5 2.5 0 10 5 7.5 7.5 5 2.5 0 0 5 F
Slide 41: PBA Phase – Major Risks
PBA Phase 2 – Major Risks • Cut-off Wall Integrity ! On Diamonds We Build • Security when mining & treating high ! grade material • Dredge water supply ! • Duration of pond dewatering ! • Environmental & Stakeholder Issues ! • Project timing ! - 3rd Party Audits - Testwork - Prototype Equipment (SWI
Slide 42: Marine Dredging Project
On Diamonds We Build Marine Dredging Project OBJECTIVES • Evaluate the potential to economically extract lower grade marine resources with TSHD technology. ( ≤ 0.1 ct/m2) • High mining rates (Target > 900m2/hr) • Carat Production from January 2007 • Lower capital / high working cost operation • Expa
Slide 43: The concept
On Diamonds We Build The concept NAMDEB O N D IAMONDS WE B UILD
Slide 44: How?
On Diamonds We Build How? NAMDEB O N D IAMONDS WE B UILD
Slide 45: The Pipeline
On Diamonds We Build The Pipeline NAMDEB O N D IAMONDS WE B UILD
Slide 46: Pumping!!!
On Diamonds We Build Pumping!!! NAMDEB O N D IAMONDS WE B UILD
Slide 47: Survey during dredging operations
SURVEY DURING DREDGING OPERATIONS On Diamonds We Build BEFORE DREDGING AFTER DREDGING MINING AREA NAMDEB O N D IAMONDS WE B UILD
Slide 48: Environmental (8%)
On Diamonds We Build Environmental (8%) All marine life: • Baseline surveys done • Monitoring will continue for 14 months Overflow monitoring • Overflow appears very clean • Monitor samples taken Sea overflow Land overflow NAMDEB O N D IAMONDS WE B UILD
Slide 49: Atlantic Trial Results
On Diamonds We Build Atlantic 1 Trial RESULTS • Mining Rate – 7 weeks of dredging completed – 1 086 000 m2 mined – Average 920 m2 / hr • Depletion – Initial test panel depletion low ( < 60%) – Draghead changes made – Additional mining and sampling – Significant improvement ( 75%) NAMDEB O N D IAMOND
Slide 50: Atlantic Trial
Atlantic 1 Trial P1D06 depletion 75% On Diamonds We Build 87% 65% 82% 64% NAMDEB O N D IAMONDS WE B UILD
Slide 51: Elizabeth Bay Project: N$ million
On Diamonds We Build Elizabeth Bay Project: N$ 450 million New Primary Liberation Area with water-flush primary crusher New Secondary Liberation Building, with secondary crushers, tertiary crushers and New Sea Water Intake mills. system, new CCR, new fine tailings disposal system, new workshop, new
Slide 52: A World Class Plant with a long future
On Diamonds We Build A World Class Plant with a long future NAMDEB O N D IAMONDS WE B UILD
Slide 53: Key Statistics of a fast track project
On Diamonds We Build Key Statistics of a fast track project • Project feasibility launched: October 2001 • Project approval: March 2003 • Construction began: September 2003 • Construction completed: November 2004 • Ramp-up slower than expected – Series 3 • Construction Contractors were 84% Namibian
Slide 54: Inshore Project - Area of interest
On Diamonds We Build Inshore Project - Area of interest R&D Project NAMDEB O N D IAMONDS WE B UILD
Slide 55: We have come a long way!
On Diamonds We Build We have come a long way! Attempts in the 1980’s NAMDEB O N D IAMONDS WE B UILD
Slide 56: The Jet Rig
On Diamonds We Build The Jet Rig NAMDEB O N D IAMONDS WE B UILD
Slide 57: The Jet Rig
On Diamonds We Build The Jet Rig - 2 NAMDEB O N D IAMONDS WE B UILD
Slide 58: The Seawalker
On Diamonds We Build The Seawalker NAMDEB O N D IAMONDS WE B UILD
Slide 59: Gully Mining Machine Prototype
On Diamonds We Build Gully Mining Machine Prototype NAMDEB O N D IAMONDS WE B UILD
Slide 60: We are changing our paradigms
On Diamonds We Build We are changing our paradigms . . . NAMDEB O N D IAMONDS WE B UILD
Slide 61: Thank you!
On Diamonds We Build Thank you ! NAMDEB O N D IAMONDS WE B UILD