material characterisation by modern mineralogysaemc.com.au/archive/2014/14ehrig.pdf ·...

34
Olympic Dam 11 th SA Exploration and Mining Conference Kathy Ehrig Principal Geometallurgist 5 th December 2014

Upload: others

Post on 05-Mar-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam11th SA Exploration and Mining Conference

Kathy EhrigPrincipal Geometallurgist5th December 2014

Page 2: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Disclaimer

Slide 2

Forward-looking statements This release contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of certain operations or facilities (including associated costs); anticipated production or construction commencement dates; capital costs and scheduling; operating costs and shortages of materials and skilled employees; anticipated productive lives of projects, mines and facilities; provisions and contingent liabilities; tax and regulatory developments. Forward-looking statements can be identified by the use of terminology such as ‘intend’, ‘aim’, ‘project’, ‘anticipate’, ‘estimate’, ‘plan’, ‘believe’, ‘expect’, ‘may’, ‘should’, ‘will’, ‘continue’, ‘annualised’ or similar words. These statements discuss future expectations concerning the results of operations or financial condition, or provide other forward-looking statements. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this release. Readers are cautioned not to put undue reliance on forward-looking statements. For example, our future revenues from our operations, projects or mines described in this release will be based, in part, upon the market price of the minerals, metals or petroleum produced, which may vary significantly from current levels. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing operations. Other factors that may affect the actual construction or production commencement dates, costs or production output and anticipated lives of operations, mines or facilities include our ability to profitably produce and transport the minerals, petroleum and/or metals extracted to applicable markets; the impact of foreign currency exchange rates on the market prices of the minerals, petroleum or metals we produce; activities of government authorities in some of the countries where we are exploring or developing these projects, facilities or mines, including increases in taxes, changes in environmental and other regulations and political uncertainty; labour unrest; and other factors identified in the risk factors discussed in BHP Billiton’s filings with the U.S. Securities and Exchange Commission (the “SEC”) (including in Annual Reports on Form 20-F) which are available on the SEC’s website at www.sec.gov. Except as required by applicable regulations or by law, the Group does not undertake any obligation to publicly update or review any forward-looking statements, whether as a result of new information or future events. Non-IFRS financial information BHP Billiton results are reported under International Financial Reporting Standards (IFRS) including Underlying EBIT and Underlying EBITDA which are used to measure segment performance. This release may also include certain non-IFRS measures including Underlying attributable profit, Underlying basic earnings per share, Underlying EBITDA interest coverage, Adjusted effective tax rate, Underlying EBIT margin, Underlying EBITDA margin, Underlying return on capital, Free cash flow, Net debt and Net operating assets. These measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication of or alternative to an IFRS measure of profitability, financial performance or liquidity. No offer of securities Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities or securities in the new company to be created by the proposed demerger (NewCo) in any jurisdiction. Reliance on third-party information The views expressed in this release contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This release should not be relied upon as a recommendation or forecast by BHP Billiton.

Slide 2Olympic Dam – SA Explorers and Mining Conference, 5th December 2014

Page 3: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Statement of JORC resources

Slide 3

Mineral Resources

The information in this presentation that relates to the FY2014 Mineral Resources (inclusive of Ore Reserves) was reported by the Company in compliance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012’ (‘The JORC Code 2012 Edition’) in the 2014 BHP Billiton Annual Report on 25 September 2014.

All reports are available to view on http://www.bhpbilliton.com.

Mineral Resources are reported by S. O’Connell (MAusIMM) – Olympic Dam, L. Soto (MAusIMM), M Cortes (MAusIMM, both employed at Minera Escondida Limitada) – Escondida, Pampa Escondida, Pinta Verde, R. Turner (MAusIMM, employed by Golder Associates) – Chimborazo, M. Tapia (MAusIMM) - Cerro Colorado and Spence – combined as Pampa Norte, L. Canchis(MAusIMM, employed by Minera Antamina SA) - Antamina,

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements.

The above-mentioned persons are full-time employees of BHP Billiton, unless otherwise stated, and have the required qualifications and experience to qualify as Competent Persons for Mineral Resources under the 2012 edition of the JORC Code. The compilers verify that this presentation is based on and fairly reflects the Mineral Resources information in the supporting documentation and agree with the form and context of the information presented.

Slide 3Olympic Dam – SA Explorers and Mining Conference, 5th December 2014

Page 4: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Mineral Inventory Classifications

Slide 4

Mineral ResourcesTable 1

DepositMeasured Resource

(Mt)

Indicated Resource

(Mt)

Inferred Resource

(Mt)

FY14 ROMproduction

(Mt)

Resource Life3

(Years)BHP Billiton interest (%)

Copper

Escondida1 5,750 @0.65% Cu

4,070 @0.53% Cu

16,400 @ 0.48% Cu 148 >100 57.5

Pampa Norte2 860 @0.6% Cu

1,130 @0.48% Cu

1,100 @0.40% Cu 52 59 100

Olympic Dam

1,270 @0.95% Cu,

0.29kg/t U3O3,0.4g/t Au,

2g/t Ag

4,680 @0.78% Cu,

0.24kg/t U3O3,0.32g/t Au, 2g/t

Ag

3,890 @0.72% Cu,

0.25kg/t U3O3,0.24g/t Au,

1g/t Ag

11 >100 100

Antamina

[email protected]% Cu,10g/t Ag,0.6% Zn

[email protected]% Cu,10g/t Ag,0.7% Zn

[email protected]% Cu,10g/t Ag,0.6% Zn

45 46 33.8

1. Escondida includes Escondida, Pampa Escondida, Pinta Verde, and Chimborazo.2. Pampa Norte is the sum total of Spence and Cerro Colorado. 3. Resource life is estimated from the FY14 classified Mineral Resources divided by the FY14 production rate on a 100% basis.

Slide 4Olympic Dam – SA Explorers and Mining Conference, 5th December 2014

Page 5: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Contents

Slide 5

About BHP Billiton

BHP Billiton Copper Business

Olympic Dam Operation

Olympic Dam Geology Research Projects

Olympic Dam – SA Explorers and Mining Conference, 5th December 2014

Page 6: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

About BHP Billiton

Slide 6Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Whenan Shaft, Olympic Dam• We are a leading global resources company.

• Our purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources.

• We have a global footprint – 130 locations in 21 countries.

• Our strategy is to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market.

• Our strategy delivers more predictable business performance over time.

• In FY2014 our workforce comprised over 47,000 employees and 76,700 contractors.

Page 7: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

A diversified global portfolio

Slide 7Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Iron OreOne of the world’s leading iron ore

producers.

CopperOne of the world’s premier

producers of copper, silver, lead and uranium, and a leading

producer of zinc.

Aluminium, Manganese and Nickel

One of the world’s largest integrated producers of aluminium,

nickel and manganese ore and alloy.

CoalThe world’s largest supplier of

seaborne metallurgical coal and one of the world’s largest producers

and marketers of export energy coal.

Petroleum and PotashConventional and unconventional

oil and gas operations and a potash development project.

Petroleum and PotashCopperIron OreCoalAluminum, Manganese and NickelOffices

Coal

Page 8: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Copper Business: a simple portfolio of unrivalled quality

Slide 8Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

100+

Pampa Norte

100+

45+

Escondida

Antamina

Olympic Dam

Singapore(Marketing Hub)

Santiago

Resolution

55+

Source: Resource life is estimated from the mineral resource divided by the FY14 production rate on a 100% basis. A breakdown of Mineral Resource by category is provided in Table 1, slide 4.

100+

Operations

Offices

Resource life1

(years)

Development option

Page 9: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam: a world class deposit

Slide 9Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

0

20

40

60

80

100

120

140

160

Esc

ondi

da

# A

ndin

a

# E

l Ten

ient

e

# C

huqu

icam

ata

OLY

MP

IC D

AM

Col

lahu

asi

Gra

sber

g

Oyu

Tol

goi

Can

anea

Peb

ble

0

500

1,000

1,500

2,000

2,500

OLY

MP

IC D

AM

Alu

m S

hale

(S

wed

en)

Elk

on

Imou

rare

n

Kva

nefje

ld (R

EE

)

Hus

ab

McA

rthur

Riv

er

Inka

i

Letlh

akan

e

Cig

ar L

ake

0

50

100

150

200

250

300

Witw

ater

sran

d C

amp

Gra

sber

g (C

oppe

r)

OLY

MP

IC D

AM

Peb

ble

(Cop

per)

Ker

r-S

ulph

uret

s

Mur

unta

u

Suk

hoi L

og

Nat

alka

Lihi

r

New

mon

t - N

evad

a

Million tonnes CopperThousand tonnes U3O8

Chart depicts contained metal. Sources: Company Annual Reports, press releases and International Atomic Energy Agency (as at September 2014). Witwatersrand figure is BHP Billiton estimate and is approx imate only. # Based on Codelco reported figures at 0.2% Cu cut-off grade. BHP Billiton Mineral Resources for Olympic Dam and Escondida district (includes Pampa, Pinta Verde and Chimborazo) are on a 100% basis. The FY2014 Mineral Resource information for Olympic Dam and Escondida district on this slide is ex tracted from the report entitled BHP Billiton Annual Report 2014 published on 25 September 2014. The report can be viewed at www.bhpbilliton.com. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and contex t in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. A complete breakdown by Resource classification is provided on slide 4, table 1.

Million oz Gold

Page 10: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

The Basalt Alteration Model (pre-1975)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 10

gravity pr fo ile

m nag etic p lrofi e

LINEAMENTOBSERVED AT

SURFACEPresent surface

HOST ROCKSreduced - facies

fine - grainedlaminated sediments

PRECIPITATIONOF COPPER

AS SULPHIDES

TRANSPORT OFCOPPER UP

FAULT STRUCTURE

LEACHINGOF COPPER

SOURCEROCKSoxidisedtholeiiticbasalts

sedimentary basinor half graben

v

v

v

v

vv

v

v v

v v

v v

v v

v

v

v

vv

v

v

v

v

vv

v

v

v

v

v

v v

v

v

v

v v

v

v

v

v

v

v

v

MODEL for FORMATION ofSEDIMENT HOSTED Cu DEPOSITS

MODEL for FORMATION ofSEDIMENT HOSTED Cu DEPOSITS

Page 11: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Gravity and Magnetic Data 1974

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 11

Bouguer Gravity 1974 (BMR) Aeromagnetics 1974 (BMR)

Target Selection:1- Lake Torrens2- Andamooka Opal Field3- Olympic Dam4- Bills Lookout5- Appendicitis Dam (Acropolis)

1- under saline mudflats2- Opal Fields explor restrictions3- shallowest depth to source4- access very difficult5- highest amplitude anomaly

Page 12: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

The Exploration Model pre-1975

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 12

pre-1975 aerial photo

Olympic Dam

TMI CONTOURSBOUGUER GRAVITY CONTOURS

gravity pr fo ile

m nag etic p lrofi e

LINEAMENTOBSERVED AT

SURFACEPresent surface

HOST ROCKSreduced - facies

fine - grainedlaminated sediments

PRECIPITATIONOF COPPER

AS SULPHIDES

TRANSPORT OFCOPPER UP

FAULT STRUCTURE

LEACHINGOF COPPER

SOURCEROCKSoxidisedtholeiiticbasalts

sedimentary basinor half graben

v

v

v

v

vv

v

v v

v v

v v

v v

v

v

v

vv

v

v

v

v

vv

v

v

v

v

v

v v

v

v

v

v v

v

v

v

v

v

v

v

MODEL for FORMATION ofSEDIMENT HOSTED Cu DEPOSITS

MODEL for FORMATION ofSEDIMENT HOSTED Cu DEPOSITS

Page 13: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam Discovery (RD1 – RD10)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 13

Drill Start Date

Depth (metres) Cu (wt%) U3O8 (ppm)

Au (ppm) Ag (ppm)

RD1 Jun 1975 353-391 (38m) 1.05 70 0.27 3.5

RD3 Oct 1975 barren

RD4 Dec 1975 barren

RD5 Jan 1976 364-456 (92m) 0.93 30 0.06 2.6

RD6 Mar 1976 barren

RD7 May 1976 barren

RD8 Jun 1976 356-370 (14m) 1.10 80 0.32 2.2

RD9 Aug 1976 low grade

RD10 Sep 1976 344-518 (174m) 2.03 620 0.66 3.0

Mineralised Intersections (>1% Cu, +10m thickness)1

Olympic Dam

13

4 6

95

8

7

101. these holes are incorporated into the FY14 resource estimate

pre-1975 aerial photo TMI CONTOURSBOUGUER GRAVITY CONTOURSRD1 – RD10

Page 14: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam Discovery (RD11 – RD19)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 14

Mineralised Intersections (>1% Cu, +10m thickness)1

Olympic Dam

13

141211

15

18

17

Drill Start Date

Depth (metres) Cu (wt%)

U3O8 (ppm)

Au (ppm) Ag (ppm)

RD1 Jun 1975 353-391 (38m) 1.05 70 0.27 3.5

RD10 Sep 1976 344-518 (174m) 2.03 620 0.66 3.0

RD11 Jan 1977 330-454 (124m)495-610 (115m)

1.071.14

370500

0.360.43

1.73.6

RD12 Feb 1977 370-380 (10m)454-542 (88m)

2.131.00

430320

0.280.22

5.42.2

RD13 Mar 1977 328-380 (52m)432-454 (22m)

2.061.11

510280

0.460.65

4.34.1

RD14 Apr 1977 360-620 (260m) 1.02 270 0.21 1.6

RD15 Jun 1977 barren

RD16/W1 Jul 1977 458-469 (11m)666-868 (202m)

1.141.23

50270

0.130.42

6.44.9

RD17 Aug 1977 327-401 (74m)556-580 (24m)

1.320.47

420340

0.390.48

3.00.7

RD18 Sep 1977 454-460 (6m)518-590 (72m)

0.022.58

20590

3.190.81

1.08.5

RD19 Oct 1977 392-422 (30m)423-436 (13m)595-620 (25m)684-773 (89m)830-864 (34m)

0.041.010.032.650.69

404030

410360

1.599.281.340.340.39

1.09.31.19.11.6

19

1. these holes are incorporated into the FY14 resource estimate

pre-1975 aerial photo TMI CONTOURSBOUGUER GRAVITY CONTOURSRD11 – RD19

16

Page 15: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam Resource Outline and Operations Footprint

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 15

Olympic Dam

2014 image pre-1975 aerial photo RESOURCE OULINERD11 – RD19RD1, RD10, RD19

RESOURCE OULINERD1, RD10

Olympic Dam

Page 16: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Layout of Current Operation

Slide 16Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

RD10

Whenan Shaft

decline

core yard

Clark Shaft

decline 2

Backfill Quarry

Backfill Plant

SX

ROM stockpilesSvedala

Fuller

ANI

flotation

tails leach

CCDs

surge bins

conc leach

smelter 1

smelter 2

acid plant

anodes

concpond

PM refinery

ER refinery

EW refinery

EW slag

FF slag

recycle yard

EW slag

raise bore

raise bores

raise bore

raise bore

raise bore

raise bore

raise bore

raise bore

raise bores

raise bores

raise bore

raise bore

Robinson Shaft

raise bore

Page 17: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Resource drilling → Resource estimation

Slide 17Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Cu wt %

0.0-0.1

0.1-0.3

0.3-1.0

>1.0

Page 18: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Simplified Underground Operation Process Flow Diagram

Slide 18Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 19: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Design, schedule, develop, drill, blast and haul

Slide 19Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Development Drilling Production Drilling Blasting

Load and HaulGrizzlies/CrushingRail Haulage

Page 20: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Ore hoisting, conveying and ROM stacking

Slide 20Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Whenan Shaft

ROM Stacker

Clark Shaft

Page 21: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Backfilling mined stopes

Slide 21Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Quarry

CAF Plant

In-pit Crushing

Page 22: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

FY14 Production Stopes

Slide 22Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 23: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam Mineralogy

• Complex breccia textures, yet relatively simple mineralogy • Wide spectrum of mineral mixtures Þ many ‘ore types’

Sub-Econ Minerals(may be deleterious) Gangue MineralsEconomic Minerals

Olympic Dam ‘Ores’>90 minerals

(but 15 process critical minerals)

Cu-Sulphides (py-cp-bn-cc)(concentrate quality)

uranium minerals(uranium recovery)

Au-Ag

Co-, Zn-, Mo-, REE-,As-, Se-, Bi-, Te-, Sb-, Pb-

bearing minerals(concentrate and cathode quality)

Hematite grinding

Quartz grinding

Sericite slimes

K-feldsparChlorite acid, gelling

Siderite acid, gelling

FluoriteBarite+etc

Slide 23Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 24: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Simplified Ore Processing Flow Diagram

Mining Stockpile Grinding Sulphide Flotation

Concentrate Leach

Tailings Leach

SmeltingCu-anode

ElectrolyticRefining

Electrowinning

SlimesTreatment

Cu-U SXCounter Current

Decantation

EWCathode UOC

ERCathode

AuAg

U precip/calcination

Flot

atio

n Ta

iling

s

Slide 24Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 25: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Concentrator (grinding, flotation, concentrate leach)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 25

Grinding (~10 Mtpa)• Purpose: liberate sulphides from gangue minerals• Product: ore with a P80 ~ 75mm from a feed F80 ~135mm• 3 autogenous mills

Flotation (~520k tonnes concper annum)• Purpose: separate sulphides from gangue minerals• Product: sulphide mineral concentrate• Recovery to concentrate: Cu ~90%, U ~15%, Au-Ag ~70%,

~80% sulphide minerals, ~20% gangue (operating target)

Concentrate Leach (~460k tonnes per annum)• Purpose: to reduce fluorine and uranium content• Product: leached sulphide concentrate• Slightly upgrade the % sulphides via hematite dissolution

Page 26: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Hydromet (tailings leach, CCD, SX and UOC production)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 26

Tailings leach (~9.5M tonnes leached per annum)• Purpose: leach U from float tailings, also partially leach Cu• Products: leach residues and Cu-U acidic liquors

Counter current decantation (~53% solids)• Purpose: separate leach residues from Cu-U bearing liquors• Products: washed leach residues and Cu-U bearing liquors

Solvent extraction / Cu EW• Purpose: separate Cu- from U-bearing liquors• Products: EW Cu cathode and Cu raffinate

U SX / UOC production• Purpose: separate U from Cu raffinate liquors• Products: UOC concentrate and depleted metal liquor

Page 27: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Smelter (FF/EF, anode refining and acid production)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 27

Single stage flash smelting (~460ktpa leached concentarte)• Purpose: primary separation of Cu (blister), Fe (slag), S

(acid)• Products: blister Cu, FF slag, off-gases

Dust handling• Purpose: recover Cu from reaction shaft ‘dust’ and manage

radionuclide balance in smelter• Products: Cu-sulphates and Cu-oxides for bleeding back

into concentrate leach

Electric furnace• Purpose: clean up FF slag• Products: Cu blister and EF slag (remilling-flotation)

Anode refining (~15% more tonnes than Cu ER production)• Purpose: remove O and S from Cu blister• Products: Cu anode for ER (99.9% Cu)

Acid production from met gas and sulphur imports• Purpose: recover SO2 and clean off-gas• Products: sulphuric acid for tailings/concentrate leach

Page 28: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Refinery (electrorefining and precious metal refining)

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 28

Copper electrorefining (FY14 ~173k ER cathode)• Purpose: separate Cu from cathode deleterious elements,

produce a 99.999% Cu product• Products: ER copper cathode and PM-bearing refinery

slimes

Precious metal refining• Purpose: recover precious metals from the refinery slimes• Products: Au and Ag bullion

Page 29: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam Products – FY14*

Ag 972 koz

Cu 184.4 kt

Au 121.3 koz

UOC 4.0 kt

* BHP Billiton Production Report for the Year Ended 30 June 2014http://www.bhpbilliton.com/home/investors/reports/Documents/2014/BHPBillitonAnnualReport2014.pdf

Slide 29Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 30: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam Historical Cu Grades and Tonnes Milled

Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014 Slide 30

Olympic Dam Milestones1975 Discovered by WMC

1979 Joint venture with BP1982 Indenture Agreement with SA Government

Whenan Shaft completed

1983 EIS approved - 150,000 tpaCu 1988 Production began - 45,000 tpa Cu & 800 tpa U

1992 First Au and Ag1992 Optimisation # 1 - 66,000 tpa Cu & 1500 tpa U

1995 Optimisation # 2 - 84,000 tpa Cu & 1500 tpa U1997 EIS approved for 350 ktpa Cu

Construction for 200 ktpa Cu2000 OEP major expansion completed

2005 BHP Billiton Acquisition2006-9 Expansion Studies and EIS submission

2010 Major repairs to Clark hoist2011 Historical record FY hoist and milling performance

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

FY89

FY91

FY93

FY95

FY97

FY99

FY01

FY03

FY05

FY07

FY09

FY11

FY13

Mill

Fee

d C

u gr

ade

(wt%

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

FY89

FY91

FY93

FY95

FY97

FY99

FY01

FY03

FY05

FY07

FY09

FY11

FY13

Tonn

es (M

tpa)

mill

ed

Sources: Annual Production Report, BHP Billiton

Page 31: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Debottlenecking Olympic Dam Capacity to 235ktpa

Mined stopesPlanned stopesODP1 starter pit initial location South Mining Area (SMA)

~ 70% of Resource

• We plan to increase copper production capacity at Olympic Dam by ~50 ktpa1 from FY18

– expanding mine footprint into Southern Mine Area to access higher grade ore and increase total ore hoisted to 11 Mtpa

– grades will recover to >2.2% by FY20

– enables full utilisation of the bottleneck at the smelter and refinery

• Increased volumes and additional cost savings will place Olympic Dam in the first to second quartile of the C1 cost curve

• Requires US$200 million of surface debottlenecking capital and the acceleration of long-term drilling plans and mine development

• Underground mine development is currently in execution

1. Excludes potential impact of Olympic Dam 21 Mtpa Underground Expansion

North Mining Area (NMA)~ 30% of Resource

Olympic Dam Resource

Slide 31Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 32: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Olympic Dam 21 Mtpa Underground Expansion

Heap leaching test columns, Olympic Dam

• We are evaluating a low-risk, capital efficient underground expansion at Olympic Dam

– supported by current stoping mining method with significantly smaller footprint than prior open-cut design

– increase ore hoisted capacity to 21 Mtpa

– will include a heap leach stream operating in parallel with current concentrator and uranium leach plants

– modular development path will be value accretive at each incremental stage

• Technology is a key enabler of improved capital efficiency

– our heap leach test program is delivering promising results, significantly improved economics

• Potential to deliver over 450 ktpa1 of copper from FY24 with a first quartile C1 cost position post by-product credits

• Maintains longer-term optionality for open pit development

• Progressing to pre-feasibility in CY15, subject to approval

1. 750 ktpa on a copper equivalent basis (including, gold, silver and uranium by products), subject to BHP Billiton Board approval.

Slide 32Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 33: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that

Current Geological Research Projects

Geological Survey of South Australia• HyLogger (SWIR and TIR)

– OD cross section from RDG through mineralisation– Oak Dam cross section: 5 diamond holes– Wirrda Well: 9 holes along a pseudo-section

SA Mining and Petroleum Centre of Excellence• Trace element deportment in Fe-oxides (IMER, Ciobanu)• Notification of funding request outcomes - very soon

University of Adelaide• PhD projects (Cook, Ciobanu, Pring, Foden)

– Uranium mineralogy – Edeltraud Macmillan– REE-U and albitisation - Alkis Kontonikas-Charos– Geochemical signatures of apatite – Sasha Krneta– Fe isotopes – Christine Wawryk

University of Tasmania – CODES (Vadim Kamenetsky, Jocelyn McPhie and Maya Kamenetsky)

• PhD projects – Mafic magmatism at OD – Qiuyue Huang– Carbonates at OD – Olga Apukhtina– Bedded sedimentary facies at OD – Alex Cherry

• Dating of mineralising events at OD– Extensive LA-ICPMS dating of hydrothermal minerals –

Sebastien Meffre, Jay Thompson, Paul Olin– Sm-Nd and Rb-Sr dating – Roland Maas (Univ of Melb)– 235U/238U and Pb isotopes – Maria Kirchenbaur

(Universität zu Köln)– Zircon trace element chemistry – Elena Belousova

(Macquarie University)

University of Tasmania – CODES (Cook et al.)• ARC ITRHub: The Mining Value Chain

Slide 33Olympic Dam – 11th SA Explorers and Mining Conference, 5th December 2014

Page 34: Material Characterisation by Modern Mineralogysaemc.com.au/archive/2014/14ehrig.pdf · 2014-12-07 · (MAusIMM, employed by Minera AntaminaSA) - Antamina, The Company confirms that