australia china resources symposium adelaide
TRANSCRIPT
Mining & Infrastructure Investment opportuni4es on the Braemar Iron Forma4on
Australia China Resources Symposium, Adelaide 11 July 2012
Andrew WoskeG Managing Director, Minotaur Explora4on Ltd (ASX: MEP)
This presenta,on has been prepared by the management of Minotaur Explora,on Limited (MEP) for the general benefit of analysts and industry and does not cons,tute specific advice to any par,cular party or persons. Informa,on herein is based on publicly available informa,on, internally developed data and other sources. Where an opinion, projec,on or forward looking statement is expressed in this presenta,on, it is based on the assump,ons and limita,ons men,oned herein and is an expression of present opinion only. No warran,es or representa,ons are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the informa,on. MEP specifically disclaims and excludes all liability (to the extent permiHed by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connec,on with the informa,on, its accuracy, completeness or by reason of reliance by any person on any of it. Where MEP expresses or implies an expecta,on or belief as to the success of future explora,on and the economic viability of future project evalua,ons, such expecta,on or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertain,es and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, explora,on success, metal price vola,lity, changes to current mineral resource es,mates or targets, changes to assump,ons for capital and opera,ng costs as well as poli,cal and opera,onal risks and government regulatory outcomes. MEP disclaims any obliga,on to advise any person if it or they become aware of any inaccuracy in or omission from any forecast or to update such forecast.
The following presentation is a visualisation of possible infrastructure solutions to support potential future iron ore mine developments. Locations nominated for the
provision of infrastructure facilities are for illustration purposes only and should not be considered viable technical, economic, environmental, social or State solutions for any
future requirements
Cautionary Statements
Braemar Iron Formation: Location
2 new maps to be inserted here
1. The Braemar Iron Formation: Australia’s next big Iron ore province 2. Mining development scenarios 3. Infrastructure investment opportunities:
§ Concentrate transfer – Rail and Slurry Pipeline § Port & Sea Freight
4. a Mining Investment opportunity § Muster Dam Magnetite Project
Braemar Iron Formation: The Investment background
Braemar Iron: Australia’s next big Iron province
The Braemar Iron Formation is a regionally extensive sequence of magnetised sedimentary siltstones, with pervasive beds of magnetite mineralisation, often up to 300m thick, stretching over 200km, as shown in red on the Total Magnetic Image below.
400km
The Braemar Iron Forma4on has poten4al for an "Explora(on Target” of 25 – 50 billion tonnes of the magne4te form of iron The term "Explora(on Target” should not be misconstrued as an es4mate of Mineral Resources and Reserves as defined by the JORC Code (2004), and the term
has not been used in that context. It is uncertain if further explora4on will result in the determina4on of a Mineral Resource. Refer Cl 18 of the JORC Code (2004).
Braemar Iron: the potential mining scale
² around 5 large open cut mines
² each mining 50 – 100 million tonnes of ore p.a. and each beneficiating 10 – 20 Mtpa of iron concentrate, exceptionally low in impurities
² for total annualised output of ~50 - 100 Mtpa of blast furnace quality concentrates grading 65% - 70% Fe
² and with a foreseeable 100 year life of mining across the Braemar Iron Formation
Braemar Iron: Transporting iron products to Port
๏ Rail:
• Main continental E-W standard gauge rail line runs right through the Braemar Iron Formation
• Deposits are a 150km - 300km rail trip to Port Pirie where a Pellet Plant could be established
• existing spare rail line capacity of 10Mtpa
• For 25Mtpa haul capacity, need;
• line duplication to provide sufficient train paths beyond 10Mtpa
• 9 train sets each comprising 5 x 4,000hp Traction locomotives & 162 wagons
• 1990 train trips per year
• 5 hour load/unload turnaround time (max)
Braemar Iron: Concentrate transfer to Port
๏ Slurry Pipeline: • Slurry transfer is a cost effective alternative
to rail haulage for a long-term mining project
• Slurry transfer can be used for concentrate movements from mine to port
• we envisage a 300km long buried pipeline to a Pellet plant near Port Pirie or 380km to a deep water port location
• 25Mtpa requires a 600mm diameter Concentrate delivery pipe + Return Water Line
• Example: ✴ Minas Rio iron project, Brazil; 600mm
diameter pipeline is 522km long, to transport 24.5Mtpa of concentrate
• 2-3 intermediate Pump Stations • Port Dewatering station & Concentrate
storage • both rail and slurry line solutions could be
used to transport >25Mtpa of concentrate
Slurry loading via a floa4ng Stockpile vessel Photo courtesy Royal Resources Ltd
Braemar Iron: Port for bulk loading of iron products
ª Minimum 50Mtpa port capacity
ª up to 250 ships loaded per year
ª 6,000tph loading rate
ª 320m long, double sided berth
ª 20m draft accessible in Spencer Gulf
ª Need new deep water port in Spencer Gulf, south of Port Pirie
ª jetty length ~3km
ª Capital cost around $750 million
Biggest challenge to development of new mines is lack of bulk handling port infrastructure: • Port Adelaide: capacity is only 1.7Mtpa • Port Pirie: capacity expanding to 8Mtpa, but has very shallow dra^ • Port Bonython (proposed): sub-‐op4mal; extra rail distance incurs addi4onal haulage charges
Mines on the Braemar need to berth 200,000 DWT ‘Cape Size’ vessels to export iron concentrates & Pellets:
Braemar Iron: Sea Freight 5,300 nautical miles
Braemar Iron: Infrastructure Investment scenarios
Item Scale Capital Cost A$ million
Power & Transmission 500MW $2,250
Desalina4on Water 50Gl/year $500
Slurry Pipelines 25Mtpa $650
Rail expansion to 25Mtpa 380km $750
Locomo4ves & Wagons 9 train sets hauling 25Mtpa
$550
Port for 200,000 DWT 50Mt $750
Pellet Plant 10Mt $1,250
Total Capital Investments ±$6,650
Mining Investment opportunity at Muster Dam
on the Braemar Iron Forma4on
1,500,000,000 tonne JORC resource contains 225 Mt of 70% Fe in concentrate
Muster Dam, South Australia
Mutooroo Pastoral Sta4on is 500km from Adelaide
Muster Dam – 6.2km Strike length
Open Pit for 10Mtpa Concentrate over 20+ years Final Pit dimensions:
Length = 5,700m Width = 730m – 975m Depth = 320m
Muster Dam Section schematic
!
Muster Dam Development Schedule Ac(vity 2011 2012 2013 2014 2015 2016
Resource Defini(on
Scoping Study
PermiIng
Feasibility
Financing
Construc(on
Commissioning
Muster Dam Magnetite 1.5 billion tonne JORC resource contains 225 Mt of 70% Fe in concentrate,
not including Hema4te component which is 35% of the Fe mineralisa4on
JORC Estimate Concentrate Properties JORC
Category Billion
tonnes§ Magnetite DTR %
Fe% Al2O3 % P2O5 % S % SiO2 % LOI %
Inferred 1.5 15.2 69.8 0.4 0.002 0.002 2.8 -3.3
Target for Blast Furnace Pellet fines >60 1.0 -‐ 1.5 <0.03% P <0.01 <5.5 -‐2 to -‐4
§ Average Density 2.96t/m3 "DTR% (Mass Recovery)
= Wt Magne4te (g) / Wt Head (g)
EXPLORATION TARGET⌘: addi,onal 2.2 – 4.2 billion tonnes @ 15% – 18% DTR ⌘Refer earlier Cau4onary Statement
Muster Dam
Mining Investment opportunity at Muster Dam
Andrew WoskeG Managing Director, Minotaur Explora4on Ltd (ASX: MEP)
Interested? Please see me at the Minotaur Explora4on Trading Table