Kumba Iron Ore Limited · JSE:KIO
Kumba Iron Ore — Investor Presentation (March 2006)
17 slides from Kumba Iron Ore's investor presentation, Mar 30, 2006
Slide 1: Presentation to Analysts
Presentation to Analysts 30 March 2006 1
Slide 2: Agenda
Agenda 1.1.Kumba KumbaIron IronOre Oreoverview overview 2.2.Sishen SishenMine Mineoverview overview 2
Slide 3: Kumba Iron Ore Overview
Kumba Iron Ore Overview ¾ Kumba Iron Ore, a USD2.26bn equity value company ¾ Operating assets comprise mines at Sishen & Thabazimbi ¾ Mines produce 31mtpa of iron ore Iron Ore Business’s ¾ Combined resources exceed 2 billion tonnes Vision: of high-quality iron ore ¾ Leading lump ore producer “To gro
Slide 4: Business Strategy
Business Strategy Strategic Intent Grow business & enhance shareholder value by outperforming the cost of the capital invested in the business on a sustainable basis regardless of economic and market conditions Cost efficiency Preferred Growth Sustainable supplier Development Reduce or Grow contain
Slide 5: Cost Efficiency Strategy
Cost Efficiency Strategy Production of Final Product 35 92% ¾ Improvement culture embedded through rigorous top down 30 2.5 target setting and bottom up problem solving. 2.5 90% 2.4 2.4 ¾ Optimisation and de-bottlenecking increased production by 25 88% 10% over the last four years. 20 ¾ Sishen’s str
Slide 6: Cost Efficiency Strategy
Cost Efficiency Strategy Labour Productivity 8.000 ¾ Development of distinctive competencies. 7.600 ¾ Creating high performance culture. ¾ Improved labour productivity. t'000 7.200 7.827 7.494 6.800 7.070 7.006 6.400 Profitability - EBIT (US$m) FY2001/02 FY2002/03 FY 2004 FY 2005 $1,200 50% 42% Annu
Slide 7: Preferred Supplier Strategy
Preferred Supplier Strategy United Kingdom Korea France Austria 5% Japan Germany 23% Italy Romania Korea Japan W Europe China China 35% 35% Other 2% South Africa Kumba capacity – 31.3 mtpa ¾ Balanced geographical spread. Domestic - 9.2 mtpa Exports - 22.1 mtpa ¾ Improving the customer value proposit
Slide 8: Growth Strategy: Pipeline of 13 projects
Growth Strategy Ideas Potential MRM Pre- Independent feasibility SEP 2 Approve reviews Phase 2 C-Material Technical SEP 2 +20Mt Implement Optimization Feasibility Mining review Phase 1 Phoenix 11Mt to 3Mt 15Mt ZRP 1.5Mt Sishen Short Sishen SEP South term South SEP 1A 10Mt Phase 1 Initiatives Phase 2
Slide 9: Growth Strategy
Growth Strategy Project Status Capex (real $m) Sishen Expansion Project (SEP): Brownfield Construction underway. Full production $559m expansion of Sishen producing 10Mtpa of iron ore expected in 2009 Sishen South Project: Greenfield project in the Scoped in two phases, Ph1 to start $162m (Ph1) Nort
Slide 10: Iron Ore Growth Profile
Growth Strategy 100 90 80 Faleme 70 Pellets Pre-Feasibility: 27.9 Mtpa Production (Mtpa) 60 SEP 2 Phase 1 Phoenix 50 SEP 1A Feasibility: 9.0 Mtpa Sishen South Ph 2 40 Sishen South Ph 1 SEP 1 Thabazimbi 30 Scoped: 42 Mtpa 20 Sishen 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total pro
Slide 11: Export Channel Expansion
Growth Strategy Export Channel Expansion 100 ¾ Saldanha port expansion plan approved to 41 mtpa (KIO = 35 mtpa) A 2nd wagon tippler installed (2005) 80 3 New stacker reclaimers commissioned (2005) 60 2 New ship loaders commissioned Mtpa (2004) Stockpile area increased (2005) 40 ¾ Sishen Sald
Slide 12: Safety & Sustainable Development
Safety & Sustainable Development Lost Time Injury Frequency Rate (LTIFR) 0.9 0.8 ¾Continuous improvement of safety, 0.7 health and environmental performance and SHE management systems as an 0.6 integral part of its commitment to 0.5 sustainable development. 0.85 0.4 ¾ Responsible corporate citizensh
Slide 13: Sishen Iron Ore Mine
Sishen Iron Ore Mine Mineral Resource* (Mt) Ore Reserve (Mt) ¾ World class single open-pit mine ¾ Leading high-grade lump ore producer Inferred 182 ¾ Current LOM 23 years Indicated 701 Probable 294 Measured 1572 Proven 727 Total 2455** Total 1021 *Mineral resources includes ore reserve **Includes 46
Slide 14: Sishen Iron Ore Mine: Mining Process
MINING SishenPROCESS Iron Ore Mine (Continued) PRODUCTION DRILLS BLASTING P&H 2300 XPB AND DEMAG 285 AND P&H 2300 ROPE SHOVEL 485 HYDRAULIC SHOVELS UNITS UNITS DRILL HOLES 2 X 485 AND 1 X 285 BE 49 R (ROTARY) = 7 310 MM P&H 120 (ROTARY) = 1 15.5 M UNITS 8X9 GRID 8 P&H 2300 XPB UNITS CAT 994 C and 99
Slide 15: Sishen Iron Ore Mine: Beneficiation Process
Sishen Iron Ore Mine (Continued) PRIMARY & TERTIARY SECONDAR Crusher Washing & Up Current Fine Coarse Medium Coarse Y Crusher Screening Classifier Cyclone Cyclone Drum Drum DRS IN-PIT Screening Crusher Quaternary Quaternary Screening Crushing Blending beds Final Products Lump DRS DR C.S. Fine 15,2 M
Slide 16: Sishen Iron Ore Mine: Distribution Process
Sishen Iron Ore Mine (Continued) Sishen Saldanha Rail Length: 861 km Sishen Mine No. wagons per train: 216 Trains per week: 29 Nett load per wagon: 100t and 85t 861 km Nett load per train: 21,600t No. locomotives per train: 2 Electric, 3 Diesel Type of locomotives: GEC (50 kV 3 680 kW) Traveling tim
Slide 17: Conclusion
Conclusion ¾ Global demand for iron ore remains high, increasingly so for lump ore ¾ Kumba Iron Ore is a reliable supplier of high quality lump ore with a strong brand & reputation underpinned by stable operational assets and a skilled workforce ¾ Kumba Iron Ore’s expansion plans and projects are we