Iluka Resources Limited · ASX:ILU
Iluka Resources — AJM Mineral Sands Conference - Mildura (December 2009)
30 slides from Iluka Resources's conference presentation, December 2009
Slide 1: Iluka Resources Ltd - AJM Mineral Sands Conference, Mildura
Iluka Resources Ltd AJM Mineral Sands Conference - Mildura Peter Beilby, General Manager, Murray Basin December 2009
Slide 2: Disclaimer – Forward Looking Statements
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 anticipate, estimates,
Slide 3: Investment Proposition & Corporate Focus
Investment Proposition & Corporate Focus Principal objective: creation and delivery of shareholder value Focus: • Deliver capital-efficient transformation of asset base • Navigate period of unprecedented demand decline associated with GEC • Reconfigure portfolio to deliver improved financial perform
Slide 4: Overview of Industry Supply Response to GEC
Overview of Industry Supply Response to GEC Main actions: • Iluka - curtailed TiO2 and zircon production - idled 2 of 4 synthetic rutile kilns - approximately 50% of Western Australian production capacity idled - Western Australian workforce reduced from 700 to 400 - expected idling of remaining Ene
Slide 5: Supply
Supply Characteristics of Supply • Limited new, high quality supply • Industry experience is that projects invariably late/take time to meet production expectations • Funding, capital and country risk beset a number of mooted projects • Much of the new capacity is ilmenite and does not compete with
Slide 6: Implications of Iluka's Reconfiguration Activities
Implications of Iluka’s Reconfiguration Activities • Accelerated transition to new, longer life assets of Murray Basin and Eucla Basin • Reduction in number of assets without reduction in processing capacity • Integrated, larger scale asset model now apparent - Jacinth-Ambrosia HMC to Narngulu and H
Slide 7: Transformation of the Portfolio
Transformation of the Portfolio Integrated set of mining, upgrading and processing assets 1 Expected to complete 2011 with Douglas MUP/WCP decommissioned/redeployed 2 Expected to complete 2013 with Concord MUP/WCP decommissioned/redeployed 3 Potential mine development, subject to Board approval. Ind
Slide 8: Transformation of the Portfolio
Transformation of the Portfolio • Major capital expenditure and restructuring substantially complete end 2009 • Two new long life, globally significant production streams constitute majority of production from 2011 − Jacinth-Ambrosia - ~25% of global zircon production - 10 year+ economic life - 50 t
Slide 9: Jacinth-Ambrosia: Eucla Basin Tenement Position
Jacinth-Ambrosia Eucla Basin Tenement Position 9 Source: Iluka
Slide 10: Summary Physical Characteristics
Summary Physical Characteristics Jacinth - Ambrosia 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) Expected Mine Life At least
Slide 11: Village and Airstrip
Village and Airstrip ILUKA
Slide 12: Process Plant Site Area
Process Plant Site Area ILUKA 12
Slide 13: Mining Approach – Initial Phase
Mining Approach – Initial Phase • 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 14: Dozer Trap
Dozer Trap • 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) 14
Slide 15: Processing
Processing • 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 tonnes per hour − rateable to produce up
Slide 16: Wet Concentrator Plant
Wet Concentrator Plant • Fit for purpose – 5 years old, concentrator relocated from Georgia • Utilisation in keeping with equipment re-use and risk mitigation • Capex saving of approx $30 million • Onsite storage capacity for HMC of 50,000 tonnes 16
Slide 17: Transportation
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 • Transport provider – Kalari 17
Slide 18: Final Processing
Final Processing • Product processed at Iluka MSP at Narngulu, Western Australia • Construction of new plant and equipment to transfer HMC from ships, reclaim from stockpile and wash saline residue from surface • Existing MSP restored to dual train configuration by installation of a separation circu
Slide 19: Murray Basin Stage 2
Murray Basin Stage 2 ILUKA eoroken Hill Murray Basin VICTORIA Douglas Mine N Hamitt Ballarat A soo trl] Melbourne Mineral Separation Plant land as 19
Slide 20: Murray Basin Stage 2: Physical Characteristics
Murray Basin Stage 2 Physical Characteristics Mineral Resources 47.8 million tonnes of heavy mineral (HM) Ore Reserves 8.7 million tonnes of HM Average Ore Reserve HM Grade 20.6% Average HM Assemblage 15% rutile 11% zircon Planned Mining and Production Commencement Stage 2 commenced September 2009 E
Slide 21: Murray Basin Stage 2: General Information
Murray Basin Stage 2 General Information • 135 operational staff on site • 85% of employees employed from the local / Mildura region • Drive in/drive out roster: − 4 on, 4 off equivalent for fixed plant operators − 9 on, 5 off or equivalent for professionals − 2 weeks on, 1 week off for Mining Contr
Slide 22: MBS2 Overview
MBS2 Overview i \ 8 Pre-concentrator plant WCP by-products [im WCP feed stury [io Sea Z Mining unit plant eeu Heavy mineral concentrate (HMC) stockpile
Slide 23: Dozer Trap
Dozer Trap • Ore pushed by dozer into mobile mining unit plant (dozer trap) • MUP capacity – Up to 570 tph • Slurry pumped 5 km to Primary Concentrator plant • Mining advances ~20m per day 23
Slide 24: MUP being fed ore by Dozer
MUP being fed ore by Dozer ILUKA
Slide 25: View looking from South end of Pit looking North
View looking from South end of Pit looking North Saline O/B MUP Sand tails 25
Slide 26: View of South end of pit showing backfill
View of South end of pit showing backfill 26
Slide 27: View of PCP, WCP and WHIMS Processing facilities
View of PCP, WCP and WHIMS Processing facilities 27
Slide 28: Concentrate Stockpiles
Concentrate Stockpiles 28
Slide 29: Emerging Characteristics of Iluka
Emerging Characteristics of Iluka • Company/asset base transformation largely complete • Consequently, project execution and balance sheet risk are reducing • Navigating challenging 2009 • Shape of 2010 financial year dependent on pace of global / demand recovery • Financial characteristics of compa
Slide 30: Iluka Resources Limited
Iluka Resources Limited For further information, contact: Robert Porter, General Manager, Investor Relations [email protected] +61 8 93604751 Iluka’s website www.iluka.com 30
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