Slide 1: Jacinth–Ambrosia Site Visit
For personal use only Iluka Resources Limited Jacinth–Ambrosia Site Visit 26 November 2009 Breakfast Briefing – Adelaide
Slide 2: Disclaimer – Forward Looking Statements
Disclaimer – Forward Looking Statements For personal use only 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: Introductory Comments
For personal use only Introductory Comments David Robb, Managing Director Jacinth-Ambrosia’s Context in Iluka’s Portfolio
Slide 4: Jacinth-Ambrosia Positioning in Portfolio
Jacinth-Ambrosia Positioning in Portfolio For personal use only • Pivotal new source of global zircon supply - constitutes ~ 25% of global zircon supply - largest new zircon source since Eneabba, WA • High quality, long life source of production - high revenue per tonne - estimated 1st quartile reve
Slide 5: Summary Physical Characteristics
Summary Physical Characteristics Jacinth - Ambrosia For personal use only Mineral Resources 9.5 million tonnes of HM HM Reserve 6.4 million tonnes of HM Avg Reserve HM Grade 6.5% Avg HM Assemblage 50% zircon 28% ilmenite 5% rutile Development Capex <$390 million (original budget $420 million) Expect
Slide 6: Assemblage Characteristics
Assemblage Characteristics Globally Highest Zircon Assemblage Mineral Sands Deposit For personal use only 3.00 Iluka Jacinth-Ambrosia 2.50 2.00 Zircon to titanium tioxide ratio 1.50 1.00 Namakw a A ustralian Zircon Gunson Resources Iluka Mid West Iluka V irginia Iluka Murray Basin 0.50 DuPont CRL Ti
Slide 7: 2011-2013 Asset Configuration
2011-2013 Asset Configuration Expected Asset Configuration For personal use only 1 Expected to complete 2011 with Douglas MUP/WCP decommissioned/redeployed 2 Expected to complete 2013 with Concord MUP/WCP decommissioned/redeployed 7 3 Potential mine development, subject to Board approval. Indicative
Slide 8: Major Producers – Zircon Production
Major Producers – Zircon Production For personal use only Zircon produced (ktpa) 2002 2003 2004 2005 2006 2007 2008 RBM 300.3 235.3 219.6 234.2 237.7 239.4 240.0 Namakwa 106.3 93.3 119.1 128.6 128.1 114.5 130.0 KZN - 48.1 49.3 47.0 49.9 34.3 34.0 Iluka MW 130.0 245.7 238.5 203.9 244.6 197.2 167.8 Il
Slide 9: Mineral Sands Supply
Mineral Sands Supply Main Characteristics For personal use only • Limited new, high quality supply (ex Iluka’s Inducement of New Supply Project Ranking by NPV – Illustrative Inducement Analysis projects) • Resources projects frequently late/take time to meet production expectations Rutile Price (% C
Slide 10: Industry Zircon:TiO2 Ratio
Industry Zircon:TiO2 Ratio Despite Advent of Jacinth-Ambrosia, Industry Z:TiO2 Ratio Remains Stable For personal use only mt of TiO2 or Zircon Ratio t Zircon/t TiO2 7.0 0.35 TiO2 Historical Supply Zircon Historical Supply 6.0 0.3 Zircon/TiO2 Ratio All 5.0 Feedstock Producers 0.25 (including J-A) 4.0
Slide 11: Zircon Demand
Zircon Demand Demand Influenced Predominantly by Developing/Urbanising Economies For personal use only China’s Urban Residential Floorspace Global Zircon Consumption CAGR since 1990 is 3.4% while China’s CAGR is 17.2% • China used 2.8 bn sqm of tiles in 2008 • Future growth in China’s urban floorspa
Slide 12: Mineral Sands Price Relativity
Mineral Sands Price Relativity Historical Pricing of Various Commodities For personal use only Mineral sands has not seen comparable price appreciation compared with infrastructure stage commodities. Similar factors are at work – resource scarcity, strong demand from developing economies and, in the
Slide 13: Product Attributes and End Applications
For personal use only Product Attributes and End Applications Victor Hugo General Manager, Product and Technical Development
Slide 14: Product Market Application
Product Market Application For personal use only • Premium grade zircon - low impurity levels suitable for ceramics market - similar to Eneabba quality for ceramics use, which will not be available end 2010 - application for casting, zirconium chemicals and zirconia applications - • Rutile - low in
Slide 15: Production and Financial Components
For personal use only Production and Financial Components Robert Porter General Manager, Investor Relations
Slide 16: Jacinth-Ambrosia Production and Financial Characteristics
Jacinth-Ambrosia Production and Financial Characteristics For personal use only • Operating mines will produce HMC - includes mining, separation and transportation costs to mineral separation plant • Final product processing of HMC will occur at one or more mineral separation plants (Narngulu or Ham
Slide 17: Production & Financial Characteristics
Production & Financial Characteristics Indicative Figures Based on Targeted Production & Current Planning Assumptions, Subject to Ramp Up and Operational Experience For personal use only All Figures are Approximate Annual Data Ore Mined million tonnes 8.7 Ore Grade % 7.7 VHM Grade% 7.0 HMC produced
Slide 18: Production and Financial Components
Production and Financial Components Indicative Figures Based on Targeted Production & Current Planning Assumptions, Subject to Ramp Up and Operational Experience For personal use only • Cash production costs to produce HMC include mining, separation and transportation costs of HMC from Port Thevenar
Slide 19: Project Overview
For personal use only Project Overview Hans Umlauff General Manager, South Australian Development
Slide 20: Jacinth-Ambrosia Project Objectives
Jacinth-Ambrosia Project Objectives For personal use only 1. Safety -There is nothing more important 2. Urgency - Every day counts 3. Building a Business - Not just a project 4. Cost Minimisation - Fitness for purpose 5. Licence to operate - Build trust and respect 20
Slide 21: Jacinth-Ambrosia Location
Jacinth-Ambrosia Location For personal use only 21
Slide 22: Regional Location
For personal use only Regional Location 22
Slide 23: Project Planning & Execution
Project Planning & Execution For personal use only • Integrated project team – Iluka & Parsons Brinckerhoff • Assembled for completion of DFS and Execution phase • Project team co-located, best person for job • Key Iluka appointments include: - Project Manager - Operations Manager - EH&S Manager - P
Slide 24: Project and Operations Overview
For personal use only Project and Operations Overview Closing Slide Allen Cauvin, Project Manager Andrew Whatham, Operations Manager Closing Statement
Slide 25: Scope of Project
Scope of Project For personal use only • Accommodation village - designed to accommodate 160 persons (~ 300 construction) • Water - Water transported from borefield to site 32 km in GRP - potable water produced by reverse osmosis plant • Unsealed airfield - fly-in-fly-out from Ceduna / Adelaide • Di
Slide 26: Water Pipeline
For personal use only Water Pipeline 3
Slide 27: Village and Airstrip
Village and Airstrip For personal use only 4
Slide 28: Process Plant Site Area
Process Plant Site Area For personal use only 5
Slide 29: Operational Overview
Operational Overview Mining For personal use only • Two contiguous deposits • Located within Yellabinna and Nullabor Regional reserves • First mining on mixed use reserves in South Australia • Initial mining of Jacinth with mine mining unit plant move to Ambrosia planned in 2017 • Total area disturb
Slide 30: Resources & Reserves
Resources & Reserves Eucla Basin Total (includes Tripitaka) For personal use only The statement of Mineral Resources and Ore Reserves presented in this Briefing has been produced in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves, December 2004 (the JORC Cod
Slide 31: Development Overview
Development Overview For personal use only 8
Slide 32: Operational Overview – Mine Plan
Operational Overview Mine Plan For personal use only Mining Method • Conventional dry mining in large open pit • Overburden removal by truck and excavator • Dozer trap mining • Mining unit plant in pit Physical Properties • 900m wide by 5 km long • Free running, fine grained sand • Low in moisture;
Slide 33: Jacinth-Ambrosia Test Pit
Jacinth-Ambrosia Test Pit For personal use only • Test pit successfully completed in Dec- Feb 2009 • 200 thousand cubic metres excavated • Purpose to test geotechnical characteristics of overburden and ore • Confirmed assumptions regarding trafficability and geotechnical characteristics (stability o
Slide 34: Project Overview – Mining Contractor
Project Overview Mining Contactor For personal use only • Exact Mining appointed in Mid 2009 - 5 year contract • Mining fleet to include: - 1200 Hitachi Excavator - 4 x 777 Caterpillar Haul trucks - 3 x D10 Dozers - 16H Grader - 345 Caterpillar Excavator - 773 Water Cart • Predominantly fixed rate c
Slide 35: Project Overview – Dozer Trap
Project Overview Dozer Trap For personal use only • Ore pushed by dozer into mobile mining unit plant (dozer trap) • MUP capacity – Up to 1400 tph • Slurry (-10 mm) pumped to wet concentrator plant • Secondary screening at concentrator (-2 mm) 12
Slide 36: Mining Approach – Initial Phase
Mining Approach – Initial Phase For personal use only • Mining starts at the North of the main creek line around the middle of the deposit • Opportunity to move further north to lower grade or progress into Southern Jacinth sooner for higher grade • Readily achievable with minimal additional cost 13
Slide 37: Project Overview – Processing
Project Overview Processing For personal use only • On site processing of ore into a Heavy Mineral Concentrate (“HMC”) • Utilisation of wet concentrator plant relocated from USA • Ore slurry sent by pipeline to WCP - current distance of 1 km, extending to 7 kms for Ambrosia • WCP capacity of 1000 to
Slide 38: Project Overview – Wet Concentrator Plant
Project Overview Wet Concentrator Plant For personal use only • Fit for purpose – 5 years old, concentrator relocated from Georgia • Utilisation in keeping with equipment re-use & risk mitigation • Capex saving of approx $30 million • Onsite storage capacity for HMC of 50,000 tonnes 15
Slide 39: Project Overview – Water
Project Overview Water For personal use only • Hyper saline water drawn from paleochannel • Bore field 34 kms from process plant • Paleochannel aquifer is distinct from Eucla Basin - remote from Nullabor Cave system • No groundwater dependent ecosystems associated with J-A water supply source • ~ 7
Slide 40: Project Overview – Transportation
Project Overview Transportation For personal use only • 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 • Transport provider – Kalari 17
Slide 41: Project Overview – Transportation
Project Overview Transportation For personal use only • Long term contractual arrangement to utilise ABB ship loading facilities at Port of Thevernard • 40,000 tonnes storage facility at Port Thevenard • Time charter shuttle vessel established - payload of 25,000 tonnes - 16 day round trip to Gerlad
Slide 42: Project Overview – Site Infrastructure
Project Overview Site Infrastructure For personal use only • Accommodation village: − accommodates 160 persons − Pool − Tennis courts • Unsealed airfield • Electrical demand between 6.8 MW and 9.4 MW • Diesel fuel supply – Build Own Operate (“BOO”) Power Station 19
Slide 43: Human Resources
Human Resources For personal use only • 100 operational personnel on site • Fly-in-fly-out from Ceduna / Adelaide • Roster - 8 days on 6 days off for fixed plant operators and Professionals - 2 weeks on 1 week off for Mining Contractor • Employment policy - Employee collective agreement established
Slide 44: Final Processing – Narngulu, Western Australia
Project Overview Final Processing – Narngulu, Western Australia For personal use only 21
Slide 45: Project Overview – Final Processing
Project Overview Final Processing For personal use only • Product processed at Iluka MSP at Narngulu, Western Australia • Construction of new plant & equipment to transfer HMC from ships, reclaim from stockpile and wash saline residue from surface • Existing MSP restored to dual train configuration
Slide 46: Wash Plant Building
Wash Plant Building For personal use only 23
Slide 47: SP Bins Conveyors and Trommel
SP Bins Conveyors and Trommel For personal use only 24
Slide 48: For further information, contact
For personal use only Iluka Resources Limited For further information, contact: Robert Porter, General Manager, Investor Relations robert.porter@iluka.com +61 8 93604751 Iluka’s website www.iluka.com