Iluka Resources Limited · ASX:ILU
Iluka Resources — South Australian Resources & Energy Investment Conference 2011
19 slides from Iluka Resources's conference presentation, May 2, 2011
Slide 1: Iluka Resources Limited
Iluka Resources Limited South Australian Resources & Energy Investment Conference 2 May 2011 Steven Wickham General Manager, Australian Operations
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: Contents
Contents • Iluka and Mineral Sands Sector Overview • SA Exploration & Jacinth Ambrosia (J-A) Operation • Eucla Basin Importance & Iluka’s Commitment to SA 3
Slide 4: Iluka and Mineral Sands Sector Overview
Iluka and Mineral Sands Sector Overview Eucla JABasin Camp 4
Slide 5: Iluka Resources: Overview and Investment Proposition
Iluka Resources Overview and Investment Proposition Market capitalisation ~A$5.5 billion (418.7 million shares on issue) Industry Sector Materials (minerals sands exploration, project development, mineral processing and marketing; iron ore royalty deriving from BHP Billiton’s Mining Area C, Western
Slide 6: Industry Structure and Participants
Industry Structure and Participants Relative Industry and Geography Supply Consolidation Zircon Titanium Including: Including: Indonesia, 6% China, 12% China, 5% Norway, 7% Vietnam, 3% Ukraine, 7% India, 2% India, 4% Major Producers Vietnam, 4% Major Producing Countries 6 Source: TZMI and Iluka
Slide 7: Major Zircon / Titanium Dioxide Markets
Major Zircon / Titanium Dioxide Markets Zircon Opacity (whiteness) high refractive index (zircon refracts and reflects white light well) OPACIFIER IN CERAMICS Resistant floor & wall tiles | sanitary ware water, chemical and abrasion resistance of glazes due to hardness table ware of zircon ZIRCONIA
Slide 8: Zircon: Favourable Market Conditions
Zircon Favourable Market Conditions • Global consumption in 2010 estimated at 1.3 million tonnes; demand higher • China the major global zircon consumer, imports running at above pre GEC levels at ~595k • Since May 2010, Iluka unable to satisfy customers’ full demand - allocating volumes • Global ce
Slide 9: High Grade Titanium Dioxide
High Grade Titanium Dioxide Emerging Market Dynamics also Favourable • Demand recovery for high grade titanium dioxide feedstocks WA Synthetic Rutile Kiln • Evidence of insufficient high quality industry supply • 2011 1st year of unconstrained contract price negotiations unable to fully meet all c
Slide 10: Operational and Exploration Overview
Operational and Exploration Overview JA Processing Facility Drill Rig 10
Slide 11: Iluka's Australian Operations
Iluka’s Australian Operations Darwin Murray Basin, Victoria / NSW • major rutile and zircon production province • mineral separation plant - Hamilton • economic life to 2023+ Northern Territory Queensland Eucla Basin, South Australia Western Australia • globally significant zircon production source
Slide 12: JA - Scope of Operation
JA - Scope of Operation JA Processing Facility • Current mine life +2020 • 900m wide by 5 km long • Low in moisture; no groundwater • Overburden minimal - Strip ratio 0.5:1 • Ore at average thickness of 20 metres • Mining unit plant in pit - 1400tph • Wet Concentrator – 1000tph • HMC production – 12
Slide 13: JA Timeline & Contribution of SA Government
JA Timeline & Contribution of SA Government Timeline: Contribution of SA Government: • Jacinth discovery Sept 2004 • Premier & Ministers provided personal support • DFS study commenced June 2007 • Government agencies coordinated support through Case Managers • DFS completed 2008 • Solutions to chall
Slide 14: Exploration Overview
Exploration Overview • Searching for large, long life, high quality deposits • Implementing a two stage, green and brown fields exploration strategy • Exploration from 2004 to 2011 >$30M committed to date and ~337,000 metres drilled • Five mineral resources* delineated (14 Mt HM) & four other (non J
Slide 15: Geophysics – Radiometrics Expanding the search space
Geophysics – Radiometrics Expanding the search space • 8,200km2 airborne survey over the next 4 months • High resolution magnetic and radiometric data • Flying at 20m height with 100m line spacing • Four times resolution of government data • Planned completion end Q2, 2011 • A potentially useful too
Slide 16: Eucla Basin Importance & Iluka's Commitment to SA
Eucla Basin Importance & Iluka’s Commitment to SA LOCATION PLAN Transcontinental Railway Immarna Map Area Area of Focus 2010 Jacinth & Ambrosia Typhoon Mojave Ceduna Port SA JA Camp and Air Field !( Legend ± Mineral Occurrences Ooldea_Range Tripitaka 0 30 km Barton_Range Iluka Tenements Eyre Highway
Slide 17: Jacinth-Ambrosia Positioning in Iluka Portfolio
Jacinth-Ambrosia Positioning in Iluka Portfolio JA Mine • Pivotal new source of global zircon supply constitutes ~ 20% - 25% of global zircon supply largest new zircon source since Eneabba, WA • Consolidates Iluka’s position as largest global supplier of zircon • High quality, long life source o
Slide 18: Iluka's Commitment to South Australia
Iluka’s Commitment to South Australia • Two members of Iluka’s executive group located in Adelaide • Eucla Basin exploration team based in South Australia • Eucla Basin tenements Iluka’s largest and most prospective exploration land holding (50,000 sq km) • Eucla Basin will constitute the major prop
Slide 19: For further information, contact: Dr Robert Porter
For further information, contact: Dr Robert Porter General Manager, Investor Relations + 61 3 9600 0807; + 61 (0) 407 391 829 [email protected] www.iluka.com 19
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