Grange Resources Limited · ASX:GRR
Grange Resources — AMEC National Mining Congress 2007
35 slides from Grange Resources's conference presentation, Jun 7, 2007
Slide 1: Stock Exchange Announcement: Investor Presentation
7“, GRANGE NF RESOURCES LIMITED ABN 80 009 132 405 STOCK EXCHANGE ANNOUNCEMENT INVESTOR PRESENTATION 7 June 2007 Grange Resources Limited ("Grange") provides the attached presentation which is to be delivered today at the 2007 Association of Mining and Exploration Companies Inc (AMEC) National Minin
Slide 2: Southdown Magnetite and Kemaman Pellet Project
(ON, GRANGE LY, RESOURCES LIMITED Southdown Magnetite and Kemaman Pellet Project An advanced Iron Ore Project for the Direct Reduction and Blast Furnace Pellet Market “AMEC Mining Congress - June 2007 Grange Resources Limited (GRR) Level 11, 200 St Georges Terrace Perth, WA 6000, Australia Phone +61
Slide 3: Contents
Contents eat: Grange Resources Limited
Slide 4: Grange Overview
Grange Overview Board of Directors Anthony Bohnenn Non Executive Chairman Geoff Wedlock Managing Director Alex Nutter Technical Director Richard Krasnoff Non Executive Director Hans-Rudolf Moser Non Executive Director ASX Code: Shares on Issue: Share price as at 6 June 2007: 104,675,599 $2.12 Market
Slide 5: Contents
Contents | Economics in
Slide 6: Project Highlights
Project Highlights a a 1 ee 7 lala 7 es ( ae 7 al 77 market Grange acquired project in November 2003 and has im expended A$27M on evaluation and feasibility since > GRANGE acquisition.
Slide 7: Project Overview
inca iis alesis KS Project Overview Dual Location —o SSS Sse } | Southdown OSMIPA « Open pit mine Snes « Magnetite concentrate production (3.4 - 6.6mtpa) « Slurry pipeline 90kms from mine to existing Albany Port SSS SSS SSS SSS SSS > Kemaman « Pellet production 3.5 - 6.8mtpa « Deep water, capesize p
Slide 8: Southdown Magnetite Deposit
=> ae = c oo - i oo .. Vn L i / . - ie a oe i S Al ] SOUTHDOWN ey MAGNETITE DEPOSIT | a cc io > i a. Le i A ioe a Cae ee a ey i i ; et it oe. / i i a oy) : . a» - ? : a a [ i | ca = oe i iD ; . oi | a i ca os 3S 7 oy : a a i SN o _ - L / iil ‘il Gi Se il ae il rs id i Nas a ig ig ihe = a _ Rae = a E
Slide 9: Project Location - Kemaman
Project Location - Kemaman » PORT OF KEMAMAN IS LOCATED ON EAST COAST OF MALAYSIA » PROJECT SITE IS LOCATED WITHIN TELUK KALONG INDUSTRIAL ESTATE ft - — | io Le ee TALS ie Rei K ) " oa : au EGASTEEL | ae +.SMT DRI PLANT x yy Boe S . 4
Slide 10: Contents
Contents Economics Partners and Funding Ls GRANGE 7S AESRURCES LWeEED
Slide 11: Freehold land subject to option to purchase agreement
- Freehold land subject to option te purchase agreement akm
Slide 12: Southdown Resource
Southdown Resource Annual production of 3.5 - 6.6Mtpa magnetite concentrate = ~25 year mine life ‘Grange Drilling 5.7km Strike Grange Drilling 5.95km Strike. JORC Portman JORG Indicated @ Inferred Drilling on 2km Strike indicated 42TNt ; 37% @ Indicated Magnetite 347Mt 37% Magnetite 1987 Jan-06 Aug-
Slide 13: ii oie
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Slide 14: Contents
Contents Economics Partners and Funding Ls GRANGE 7S AESRURCES LWeEED
Slide 15: Project Infrastructure — Southdown & Albany
Project Infrastructure — Southdown & Albany All key infrastructure in place or well advanced Pit dewatering, site water harvesting, retreating Albany waste water Griffin, Wesfarmers, Alinta (coal and natural gas potentially augmented by biomass and wind power) lV] » Western Power Networks Transmissi
Slide 16: Slurry pipeline and power route
MUJA POWER STATION Kojonup i Pipetine Route Proposed 220Kv Transmission Line Existing 132Kv Transmission Line Proposed 132/220Kv Transmission Line (alignment not yet defined) Slurry Pipeline « Optimal transport method « Finalising easements with landowners Power « Western Power Networks 220kv line f
Slide 17: Albany port development
Li i L i ee Concentrate Storage Shed & Channel to be dredged and widened Proposed Berth 7 (170,000 DWT vessels) Existing Berth 6 (woodchips export) TE Mh) il « Work advancing on port design and pre-development engineering « Heads of Agreement signed with Albany Port Authority for Port ™™ GRANGE <5 d
Slide 18: Project Infrastructure - Kemaman
ALA ee ee ee ee eee Project Infrastructure - Kemaman All key infrastructure in place IV] Deep Water Port » ror Wharf at Remanen (West Wharf) Suitable for Capesize vessels IV] » Conveyor corridor between Port and pellet plant lV] Power, Gas & » Power — TNB (substation immediately next to site) Gas —
Slide 19: Kemaman site map
ee ee ee y \ > » South —— China LAND HELD AY : ROAD BUILDER (mM) Sea HOLDINGS BHD MS TANJUNG Conveyor Nea Corridor 2 A ; KEMAMAN PORT ? } Liquid chemical berth f LPG vw an ; BUKIT Breakwater Nc PEJAIAT > TANJUNG - 3 Z ~~ SULONG i ana
Slide 20: Future wharf
FUTURE WHARF | o) | y a | | oN a | a 2 y a | | y y | | | y 7) | | y y 7) | | y y o) a 0) y 7) | | oN o| | | 2 y a | | y y 7) | 0) y SSS IGE ware ie SOS SSS SRS
Slide 21: Contents
Contents The Southdown and Kemaman P Economics Partners and Funding
Slide 22: Proximity to Customers
Proximity to Customers @ Perwaja Steel @ Amsteel @ Krakatau Steel @ Megasteel © Qasco © Hadeed @ Various Various i China Steel Corp. Malaysia Malaysia Indonesia Malaysia Qatar Saudi Arabia UAE India Taiwan Hi Bluescope Steel Ltd Australia Sth Korea Hi Japanese Steel Mills Japan China
Slide 23: Proximity to key markets
ee ee silicate aaa siti a ee + Close to key markets hence reduced shipping costs + Panamax size vessels can economically deliver smaller quantities ports not able to handle capesize vessels + The close proximity to key consumers reduces working capital costs for customers ad AESOURCES LIWET ET
Slide 24: Grange Pellets — Competitive Advantage
Grange Pellets — Competitive Advantage Grange can produce both BF and DR Grade pellets which are comparable in quality and have significant freight advantages over the current pellet supply. =» DR Grade (67.4% Fe) = Extremely Low Phosphorus Levels (< 0.005%) = Low Freight Costs =» Small Quantities c
Slide 25: Phosphorus Content
Phosphorus Content * Increasing demand for low phosphorus pellets to offset high phosphorus DSO (Direct Shipping Ore) ores from the Pilbara. * Grange’s pellets have extremely low phosphorus content. 0.12 Future Pilbara \ Kemaman Nibrasco Samarco Y andi HGF (Malaysia) Canada) (Brazil) (Brazil) (Austr
Slide 26: Demand for DR Pellets
Demand for DR Pellets DR pellet demand is projected to increase significantly in SE Asia and the Gulf Region DR Pellet Demand - Target Market GSE Asia @ Gulf 2005 2008 SE Asia = Perwaja Steel = Mega Steel = Krakatau Steel Gulf Region = Hadeed = Qasco Shadeed AlL-Tuwairgi Others Drivers of increasing
Slide 27: Contents
Contents The Southdown and Kemaman P Economics Partners and Funding
Slide 28: Operating and Capital Costs
Operating and Capital Costs Operating & Capital Costs US$ Project costs are well understood and are the product of a detailed feasibility study (Note: Costs below are as at December 2006, currently being updated to June 2007) Potential to reduce stripping ratio - and lower mining cost Operating Cost
Slide 29: Cost Competitiveness
Cost Competitiveness CIF Cash Cost of Grange Pellets is competitive with other profitable suppliers CIF Cash Cost Comparison Freight to Asian buyers (USS$/t) # Conc Freight (US$/t) w FOB Cost (US$/t) CVRD Samarco Essar Kemaman Tubarao (Braal) (India) (Malaysia)* (Brazil) * Excludes credit for Malays
Slide 30: Project Economics
Project Economics Grange can supply regional customers at a price competitive to South American supply under all likely scenarios - and be profitable 2010 Start Up Pricing Scenario Pricing Scenario 2007 2007 2007 (% change in HG Fines Price) +10% ~ 10% <a s, CVRD Price CVRD DR Pellets (FOB Brazil) U
Slide 31: Contents
Contents Economics Partners and Funding ZEN, GRANGE 7S WNSCURGES OORT TS
Slide 32: Partners - Sojitz
Partners - Sojitz Sojitz entered into a binding Joint Venture Implementation Agreement on 31 May 2007 to become a 30% partner in the project. Sojitz is a recognised leader in the iron ore pellet sector and will provide a significant boost to completing the project and moving towards our goal of prod
Slide 33: Partners & Funding
Partners & Funding « Grange, together with Sojitz, is currently working with a number of parties with the aim of attracting a further strategic partner to the Joint Venture. + Grange expects to retain between 40% and 50% equity in the project. * Grange and Sojitz will work on completing pre-commitme
Slide 34: Contents
Contents The Southdown and Kemaman P Economics
Slide 35: Project Status
Project Status The Southdown & Kemaman projects are well advanced with feasibility complete, most infrastructure in place and approvals in progress. Item Feasibility Study Status Expected Timing Kemaman Environmental Approval Kemaman Investment Incentives NININ Southdown Environmental Approval In pr
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