Iluka Resources Limited · ASX:ILU
Iluka Resources — Technical Presentation (December 2017)
29 slides from Iluka Resources's technical presentation, Dec 7, 2017
Slide 1: South West Operations Site Visit
South West Operations Site Visit 7 December 2017
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements This presentation has been prepared by Iluka Resources Limited (Iluka). By accessing/attending this presentation you acknowledge that you have read and understood the following statement. Forward Looking Statements This presentation contains certain statements
Slide 3: Compliance Statement
Compliance Statement Mineral Resources and Ore Reserves Estimates As an Australian company with securities listed on the Australian Securities Exchange (ASX), Iluka is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investo
Slide 4: Iluka Overview
Iluka Overview Values – Commitment, Integrity and Responsibility • Largest global producer of zircon and rutile; major producer of synthetic rutile • Operations assets in Australia and Sierra Leone • Projects in Australia, Sierra Leone and Sri Lanka • Global customer base • Investment in exploration
Slide 5: Iluka’s Mineral Sands Portfolio
Iluka’s Mineral Sands Portfolio PERTH BASIN EUCLA BASIN MURRAY BASIN SIERRA RUTILE VIRGINIA SRI LANKA Western Australia South Australia Victoria / New South Sierra Leone USA Wales Tutunup South mine Jacinth-Ambrosia mine Balranald project Gangama dry mine Mining concluded 2016 Puttalam project Synth
Slide 6: Iluka’s Approach
Iluka’s Approach Create and deliver value for shareholders Flex assets in Preserve and Act counter Disciplined line with market advance growth cyclically where capital allocation conditions opportunities appropriate Jacinth-Ambrosia restart Cataby project Sierra Rutile acquisition Strict financial c
Slide 7: Zircon Applications
Zircon Applications Ceramics Refractory and Foundry Zirconia, Zirconium Chemicals ~50% of demand ~30% of demand and Metal ~20% of demand Zircon is opaque, water, chemical and Zircon is heat/abrasion/chemical resistant Zircon does not absorb neutrons; and is abrasion resistant and non-reactive non-co
Slide 8: Titanium Applications
Titanium Applications Pigment Titanium Metal Welding (flux) ~90% of demand ~6% of demand ~4% of demand Titanium dioxide pigment is opaque, Titanium metal has high strength to Facilitates arc ignition, good slag UV resistant and inert weight ratio, biocompatible and is removal and reduces splatter co
Slide 9: Stages of the Mineral Sands Process
Stages of the Mineral Sands Process Mineral sands ore bodies can consist Mining can involve both dry and wet Heavy mineral concentrate is transported of strand and beach dunal deposits. (dredge and hydraulic) techniques. from mine sites to a mineral separation plant for processing into final product
Slide 10: Long History of Operations in the South West
Long History of Operations in the South West 1956 - South Capel mine 1959 – Yoganup mine 1964 - Capel north mining and processing 1974 - First commercial beneficiated ilmenite plant at South Capel 1987 - Synthetic Rutile kiln 1 (SR1) commissioned at North Capel 1997 - SR2 and North Capel Separation
Slide 11: Current Western Australia Operations
Current Western Australia Operations 11
Slide 12: Tutunup South Mine
Tutunup South Mine • Mining scheduled to complete February 2018 • Site 1km wide by 3.5km long • ~25 employees and ~40 contract workers • 800m2 of wetlands relocated 12
Slide 13: Tutunup South Mine
Tutunup South Mine Screen plant, Concentrator and Office compound • Mining unit capability ~270tph • Average 80,000m3 ore processed per month − ~9% valuable heavy mineral (VHM) • Wet concentrator capability ~200tph • HMC production capability ~50tph − ~86% VHM • North Capel separation mill splits ma
Slide 14: Concentrator Process Flow
Concentrator Process Flow 14
Slide 15: North Capel Processing
North Capel Processing • Separation mill splits magnetic (ilmenite) and non-magnetic (zircon and rutile) material • Two synthetic rutile kilns - SR2 currently in operation, SR1 idled 2009 • ~200ktpa synthetic rutile capacity of SR2 • 6MW waste heat power generation capability • By products generated
Slide 16: Mineral Separation
Mineral Separation MAGNETIC SEPERATION NON MAGNETIC MAGNETIC ELECTROSTATIC SEPERATION RUTILE / LEUCOXENE ZIRCON TAILS ILMENITE 16
Slide 17: Synthetic Rutile Process Flow
Synthetic Rutile Process Flow Ilmenite reduction 17
Slide 18: SR2 Waste Heat Recovery
SR2 Waste Heat Recovery WASTE GAS OUT (254°C) (~185°C) SATURATED STEAM ——p> t — FEED WATER FROM DEAERATOR ECONOMISER BOILER SUPERHEATER (P21.280) «P21.200) (P21.200) SUPERHEATED STEAMTO TURBINE (490°C) WASTE GAS IN (850°) BOILER BYPASS 18
Slide 19: Laboratory and Testing Facility
Laboratory and Testing Facility Laboratory Metallurgical Testing Facility • Chemical analysis – XRF, ICP, wet chemistry • Mining unit processing simulation • Process chemistry • Clay separation & characterisation • Environmental − settling, consolidation, rheology • Mineral Analysis – XRD • Gravity
Slide 20: Port of Bunbury
Port of Bunbury • Finished product is trucked 35km to Port of Bunbury • Storage sheds: 100kt capacity • Export through Port of Bunbury: Load rate 500 -1000tph • Typical shipment capacity: 10-20kt New storage facility based in Picton, located on the Port Access Road Source: Bunbury Mail 20
Slide 21: Sustainable Development
Sustainable Development Iluka’s sustainable development objectives: • high levels of environmental, health and safety performance; • sound planning, control and risk management systems; and • stakeholder relationships which, over time, are mutually beneficial. 21
Slide 22: Sustainable Development Performance
Sustainable Development Performance Employee safety paramount Strong community relations and sustainable environmental development underpin operations Key Performance Indicator 2013 2014 2015 2016 2017 (year to date) Total Recordable Injury Frequency 5.0 0 0 9.3 1.7 Rate (TRIFR) (South West) Iluka’s
Slide 23: South West Rehabilitation
South West Rehabilitation Iluka seeks to achieve best practice environmental outcomes including cost effective rehabilitation success through innovative processes that meet or exceed required closure criteria. Iluka group total rehabilitation spend over past five years is $204 million (to end 2016).
Slide 24: South West Rehabilitation
South West Rehabilitation Former mine site, Wagerup, Western Australia February 2015 October 2017 Iluka group has rehabilitated 3,053 hectares since 2012 (to end 2016) 24
Slide 25: External Recognition – Sustainability Focus
External Recognition – Sustainability Focus Western Australian Department of Mine Regulations and Safety Awards • Safety and Health, Safety and People Category (2017) Victorian Government via Strzelecki Award • Excellence in community engagement (2005) • Excellence in sustainable development (2009)
Slide 26: Cataby Development Plan and Ore Reserve
Cataby Development Plan and Ore Reserve Deposit • 8.5 year mine life based on development plan which is underpinned by 86% Proved Ore Reserve and 14% Probable Ore Reserve. • Two in-pit mobile mining units • 1,100 tph feed rate to wet concentrator plant • Mine life could increase beyond 8.5 years – b
Slide 27: Cataby Project
Cataby Project Schedule 2017 2018 2019 Newman Wet Concentrator Plant (Eneabba) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Engineering Award contracts Construction Pre-strip Commissioning SR Production Note – Timing assumes Q4 2017 Board approval • Major environmental approvals obtained Capital Cost $ million • Inte
Slide 28: Cataby Product Logistics
Cataby Product Logistics Annual Volumes 250km • Located 150km north of Perth, Western Australia 350km • Sustains ~200 ktpa of synthetic rutile (SR) production in South West WA • Average annual production (ktpa, thousand tonnes per annum) – ~200 ktpa SR (annual feed ~330 ktpa chloride ilmenite) – ~50
Slide 29: Notes:
Notes: For more information contact: Adele Stratton, General Manager Finance, Investor Relations and Corporate Affairs adele.stratton@iluka.com +61 8 9360 4631 / +61 (0) 415 999 005 www.iluka.com
Iluka Resources — Technical Presentation (December 2017) on 6ix