Slide 1: Jacinth – Ambrosia Site Visit
For personal use only Iluka Resources Limited Jacinth – Ambrosia Site Visit 24 April 2009
Slide 2: Disclaimer – Forward Looking Statements
For personal use only Disclaimer – Forward Looking Statements This presentation contains forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of minerals. Forward-looking statements include those containing such words as a
Slide 3: Jacinth-Ambrosia's Positioning in Portfolio
For personal use only Jacinth-Ambrosia’s Positioning in Portfolio • Pivotal new source of global zircon supply • High quality, long life source of production ¾ >40% of Iluka’s total zircon production post 2011 ¾ Estimated 1st quartile revenue : cash cost ratio positioning in the industry ¾ Attractiv
Slide 4: Group Production by Product
Group Production by Product For personal use only Indicative Structure Z/R/SR Production by Product 2008 2010 - 2013f Zircon Rutile Synthetic Rutile Progressive move to higher margin products and production sources 1.1 million tonnes 1.3 million tonnes Production estimates only. Actual production wi
Slide 5: Product Market Application
For personal use only Product Market Application • Premium grade zircon ¾ Suitable for ceramics market ¾ Application for casting, zirconia & foundry applications • Rutile ¾ Low in sulphur and phosphorous ¾ Well suited to welding application • Chloride grade ilmenite ¾ Test work to determine suitabil
Slide 6: Summary Physical Characteristics
Summary Physical Characteristics For personal use only Jacinth - Ambrosia Mineral Resources 9.5 million tonnes of HM Ore Reserves 6.4 million tonnes of HM Avg Ore Reserve HM Grade 6.5% Avg HM Assemblage 50% zircon 28% ilmenite 5% rutile Planned Commencement First half 2010 Expected Capex $420 millio
Slide 7: Resources & Reserves
Resources & Reserves For personal use only Eucla Basin Total (includes Tripitaka) 7
Slide 8: Assemblage Characteristics
For personal use only Assemblage Characteristics 3.00 Iluka Jacinth-Ambrosia 2.50 2.00 Zircon to titanium tioxide ratio 1.50 1.00 Namakw a Australian Zircon Gunson Resources Iluka Mid West Iluka Virginia Iluka Murray Basin 0.50 DuPont CRL Ticor SA RBM BeMax Tiw est JV MDL Grande Cote Tiomin Iluka So
Slide 9: Regional Geology
For personal use only Regional Geology 9
Slide 10: Tenement Location Plan
For personal use only Tenement Location Plan Mojave Current Exploration Focus 10
Slide 11: Exploration Drilling
For personal use only Exploration Drilling • Field camps are located outside of the Reserve • Crews of 4 flown by helicopter to and from the drill rig each day • Drilling is conducted using track mounted drill rigs • Initial drill traverses as widely spaced at 10 to 20km. • Follow-up drilling conduc
Slide 12: Exploration in 2009
For personal use only Exploration in 2009 • Exploration Tenements and applications cover ~49,000 sqkm • The area around Mojave and Oolabinna traverse is the main area of focus in 2009 • Follow up drilling of wide spread heavy mineral anomalism which was announced in late 2008 • Exploration into new
Slide 13: Scope of Project
Development Overview For personal use only Scope of Project 13
Slide 14: For personal use only
For personal use only Development Overview 14
Slide 15: Mining
Development Overview For personal use only Mining • Two contiguous deposits • Located within Yellabinna and Nullabor Regional reserves • Total area disturbed by mining and infrastructure – 610 hectares • Top soil to be stripped and stockpiled for use in rehabilitation • Native Vegetation Plan to gui
Slide 16: Mine Plan
Development Overview For personal use only Mine Plan Mining Method • Conventional dry mining in large open pit • Overburden removal by scraper • Dozer trap mining Physical Properties • 900m wide by 5 km long • Free running, fine grained sand • Low in moisture • No groundwater • Average overburden ~8
Slide 17: Mining
Development Overview For personal use only Mining 17
Slide 18: Dozer Trap (CRL example)
Development Overview For personal use only Dozer Trap (CRL example) • Ore pushed by dozer into mobile mining unit plant (dozer trap) • Slurry pumped to wet concentrator plant 18
Slide 19: Test Pit
For personal use only Test Pit • Test pit successfully excavated • 200 thousand cubic metres • Confirms assumptions regarding trafficability and geotechnical characteristics of overburden and ore 19
Slide 20: Processing
Development Overview For personal use only Processing • On site processing of ore into a Heavy Mineral Concentrate (“HMC”) • Utilisation of wet concentrator plant relocated from USA • Total estimated production of 6 million tonnes of HMC: ¾ ~2.8 million tonnes of zircon ¾ ~1.5 million tonnes of ilme
Slide 21: Wet Concentrator Plant
Development Overview For personal use only Wet Concentrator Plant MC2 concentrator relocated from Georgia • Refurbishment complete • Being transported and erected on site • Capacity ~1000t per hour of sand feed • Capacity to produce 120t Heavy Mineral Concentrate per hour 21
Slide 22: Wet Concentrator Plant
Development Overview For personal use only Wet Concentrator Plant 22
Slide 23: Water
Development Overview For personal use only Water • Hyper saline water to be drawn from paleochannel • Paleochannel aquifer is distinct from Eucla Basin ¾ remote from Nullabor Cave system • No groundwater dependent ecosystems associated with J-A water supply source • Bore field to be established appr
Slide 24: Site Infrastructure
Development Overview For personal use only Site Infrastructure • Accommodation village: ¾ designed to accommodate 160 persons ¾ fly-in-fly-out from Ceduna / Adelaide ¾ limited drive-in-drive-out from Ceduna • Water: ¾ potable water produced by reverse osmosis plant using hypersaline water • Unsealed
Slide 25: Transportation
Development Overview For personal use only Transportation • HMC transported 270km by road to Port Thevenard • Portion of Ooldea Rd upgraded to high quality unsealed • New 40km section to connect Ooldea Rd to Eyre Highway • B -Triple 96 tonnes trucks, approx. 18 per day • 40,000 tonnes storage facili
Slide 26: Final Processing
Development Overview For personal use only Final Processing • Product processed at Iluka MSP at Narngulu, Western Australia • Requires upgrade at the Narngulu plant • Shuttle vessel transportation • Handy size ships: ¾ payload approx. 25,000 tonnes ¾ 16 days round trip 26
Slide 27: Final Processing – Narngulu, Western Australia
Development Overview For personal use only Final Processing – Narngulu, Western Australia 27
Slide 28: Processing Stream Narngulu, Western Australia
Project Development For personal use only Processing Stream Narngulu, Western Australia Shipped from S.A. to Geraldton then road to Narngulu MAGNETIC SEPARATION ILMENITE MAGNETIC LEUCOXENE NON MAGNETIC ELECTROSTATIC SEPARATION NON CONDUCTIVE ILMENITE WET GRAVITY Narngulu Stockpile SEPARATION LEUCOXE
Slide 29: Financial Characteristics – Cash Cost Commentary
Financial Characteristics Cash Cost Commentary For personal use only • Iluka’s Group cash costs of production ¾ 2008: $325.70/tonne of saleable product (includes upgraded ilmenite) • Jacinth-Ambrosia unit cash costs of production in initial years expected to be materially in line with, to higher tha
Slide 30: Financial Characteristics – Superior Assemblage Characteristics
Financial Characteristics For personal use only Superior Assemblage Characteritics Translate into Higher R:CC or Margins Composition of Product Stream % Zircon Rutile SR Ilmenite Other Jacinth-Ambrosia (initial years) 61 6 0 33 0 Z:R ratio ~10:1 Z:I ratio ~1.8:1 Iluka Group - 2008 17 8 18 56 1 Z:R r
Slide 31: Financial Characteristics – Non Cash Costs
Financial Characteristics For personal use only Non Cash Costs Non Cash Costs • Depreciation - straight line over life of mine (10 years current estimate) • Sustaining capex - average $3m - $5m per year over life of project • Mine move from Jacinth to Ambrosia in ~2017 will entail additional capital
Slide 32: Project Schedule – Key Approvals
Project Schedule For personal use only Key Approvals Milestone Approval date Status Board approval May 2008 Approved Ooldea Rd & Cultural track approval June 2008 Approved Granting of MLs & MPLs July 2008 Approved Early works MARP approval Aug 2008 Approved Construction MARP approval (mine site and
Slide 33: Project Schedule – Development Status
Project Schedule For personal use only Development Status Construction • Main Pipeline complete • Ooldea Road works well advanced • Site civil works well advanced • Village facilities nearing completion • Test Pit complete Project Expenditure • Commitments to date (end March) -$188 million • Project
Slide 34: Project Risks and Risk Mitigation
For personal use only Project Risks and Risk Mitigation Risk Mitigation Strategy Delayed regulator approvals Joint task group with “case manager” Technical risks Extensive test work program Relocating proven WCP Processing through existing MSP Remote site risks - Safety Intensive safety management p
Slide 35: Summary
For personal use only Summary • First development in the highly prospective Eucla Basin • Major new, high quality source of global supply • Project execution on schedule and within budget • Flexibility in terms of ramp up option if required • Economic characteristics a key component of transformatio