Slide 1: Investor Site Visit – Wonderkop Smelter
INVESTOR SITE VISIT – WONDERKOP SMELTER 6 MAY 2016 Presented by Zanele Matlala (CEO) and Amanda Magro (Wonderkop – General Works Manager) Presented by Zanele Matlala (CEO) and Kajal Bissessor (FD)
Slide 2: Legal notice/disclaimer
Legal notice/disclaimer This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by Merafe Resource
Slide 3: Programme
PROGRAMME 1. Depart Lanseria 08h30 2. Arrive Wonderkop Smelter 10h30 3. Welcome by CEO, Zanele Matlala 4. Presentation and Safety Video by Amanda Magro 5. Guests Change in Safety Apparel 6. Site Visit 11h00 7. Lunch 13h00 8. Depart for Lanseria 14h15 3 Merafe Resources Ltd | Investor Presentation –
Slide 4: Table of Contents
TABLE OF CONTENTS 1. Overview of the Glencore – Merafe Venture 2. Historical projects 3. Challenges facing the SA Ferrochrome Industry 4. Comparison of Smelting Technologies 5. Our Marketing Agents Offering 6. Labour Relations 7. Overview of the Wonderkop Smelter and Bokamoso Pelletising and Sinteri
Slide 5: Glencore – Merafe Chrome Venture
Glencore – Merafe Chrome Venture Smelters Ports Mines Lydenburg ❶ Maputo ● Kroondal ❻ Design Capacity: 396kt FeCr Richards Bay ● Processing Capacity: 1,730kt Furnaces: 3 Premus and 1 semi- Durban ● Production Capacity: 967kt closed conventional Waterval West ❼ Lion Ferrochrome (I & II) ❷ Processing
Slide 6: Diversified Operations
Diversified Operations • Geographically – 22 furnaces – 8 mines (ore and quartzite) – 9 UG2 concentrator plants Long term contracts • Technologically – Conventional Process, Semi-Closed 13 of the 22 furnaces are conventional/semi-closed technology Ore and reductants are fed cold with minimum p
Slide 7: Historic Projects Delivered on Time and on Budget
Historic Projects Delivered on Time and on Budget 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Commissioning of Merger to form Glencore- Commissioning of Boshoek smelter Merafe Chrome Venture Lion I smelter Commissioning of Acquired interest in Bokamoso Pelletiser Wonderkop smelter and related
Slide 8: Growth Through Innovation
Growth Through Innovation • Significant investments over the past decade to address: – Power efficiency – Power constraints – Ore efficiency – Process efficiency – Escalating costs • Lion phases 1 and 2 – Development of the Premus Technology • Bokamoso Pelletising Plant: Western limb, Wonderkop • Ts
Slide 9: Challenges Facing the South African Ferrochrome Industry
Challenges Facing the South African Ferrochrome Industry Glencore – Merafe Difference SA Ferrochrome Challenge The Glencore – Merafe Difference Rapidly escalating power costs Growth Through Innovation • Lion I & II, Lydenburg: Premus technology • All other plants: Sintered pelletising technology
Slide 10: Comparison of Smelting Technologies
Comparison of Smelting Technologies Premus technology provides a significant advantage Chrome Recovery for Available Technologies MWh per tonne for Available Technologies 95 6 90 90 88 5 4.4 MWh per tonne alloy 4.1 85 4 3.5 % 80 77 3 2.4 75 2 70 68 1 65 0 Con Outk DC Arc Premus Con Outk DC Arc Premu
Slide 11: Our Marketing Agents Superior Offering
Our Marketing Agents Superior Offering • Logistics – Glencore has dedicated logistic teams in all major offices Direct relationships with shipping lines, port agents and port authorities worldwide Personnel available on site at load and discharge ports – Logistics solutions ensure smooth, uninte
Slide 12: Labour Relations
Labour Relations • Sound Labour Relations – Employee Share Ownership Plan agreed with Unions – Competitive Salary Structure Home ownership incentivised No hostels Full pension contribution from company Full medical aid from company • Low level of migrant labour • Corporate Social Investment
Slide 13: Wonderkop Smelter
WONDERKOP SMELTER “The home of modern, cost effective charge chrome production” The plant is in the Bojanala District of the North West Province, South Africa. It is one of the lowest cost producers of ferrochrome in the world. Wonderkop which consists of a sinter plan and smelter plant is close to
Slide 14: Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
14 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 15: Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
15 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 16: Aerial Overview
Aerial Overview Bokamoso – Sinter Plant Aquarius Smelter Plant 16 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 17: Smelter Overview
Smelter Overview 17 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 18: Overview
Overview • Six Furnaces 553,000 tonnes of ferrochrome per annum (incl. Metal Extraction Plant) – 270 MVA installed furnace Capacity (semi-closed submerged arc) – Normal Grade Product (>50%Cr) – Alternative Grade Product (<50%Cr) • Agglomeration Capacity 1,200,000 tonnes per annum – Bokamoso Sinter P
Slide 19: History
History 2007 Bokamoso Sinter Plant commissioned (August 2007) 2004 Pelletising North Plant commissioned 2003 Second Alloy Metal Extraction Plant commissioned Furnace 5 and 6 commissioned (July 2001) 2001 ISO 14001 certification 2000 Block Plant commissioned ISO 9001 certification (May 1999) 1999 Pel
Slide 20: Smelter Operation – Process Flow
Smelter Operation – Process Flow RM RM MIXING COARSER ORE, REDUCTANTS & FLUXES BUNKERS RM RECEIPTS & HANDLING FINE ORE F1 & F2 F3 & F4 PELLETIZING SLAG & METAL METAL SEGREGATION TAPPING (DUAL PER PRODUCT TYPE, METAL INGOT SKIMMER) F5 & F6 CRUSHING & SCREENING COOLING & BREAKING TRANSIT SLAG DUMP REC
Slide 21: Production Input and Output
Production Input and ENERGY (excl aux) • ESKOM Output 3.5 MWh • Dolomite FLUX • Quartz BOKAMOSO SINTER PLANT 0.436 t • Limestone REDUCTANTS • ESKOM 0.68 t ORE FEED: ORE • Pellets • UG2 2.20 t • LG6 Met Grade Concentrate • Other Ore Cr – 47- 49% Si – 3.0-7.0% S – <0.050% 1 250˚C Sinter Steel Belt FUR
Slide 22: Bokamoso
Bokamoso • Bokamoso means “the future” in Tswana (one of South Africa’s 11 official languages) • The plant has a design capacity of 1.2 million tonnes of pellets per annum and consists of two similar production lines Bokamoso has produced 7,981,055 tonnes of sintered pellets for the period Aug 2007
Slide 23: Aerial View – Bokamoso Sinter Plant
Aerial View – Bokamoso Sinter Plant 23 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 24: Sinter Plant – Process Flow
Sinter Plant – Process Flow GRINDING SLURRY BENTONITE ANTHRACITE RAW MATERIAL DAY BINS CERAMIC HANDLING BALL MILL MIXING TANK FILTERS PELLETISING ROLLER MIXER DRUM SCREEN FEED BINS SHUTTLE FEEDER & BURNERS ROLLER FEEDER PRODUCT BINS SCREENS BOTTOM PELLETS STEEL BELT SINTERING FURNACE BOTTOM PELLETS
Slide 25: Sinter Plant – Raw Material Flow
Sinter Plant – Raw Material Flow 25 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 26: Metal Extraction Plant – Process Flow
Metal Extraction Plant – Process Flow 26 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 27: Our Team
Our Team • Competitive • Positive • Team Players • Passionate • Entrepreneurial Culture • Ownership • Committed 27 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016
Slide 28: Thank you for your attendance!
Thank you for your attendance! 28 Merafe Resources Ltd | Investor Presentation – Wonderkop Site Visit 6 May 2016