AN EMERGING IRON ORE PRODUCER, UNLOCKING THE VALUE OF SOUTH - - PowerPoint PPT Presentation

Steve Brown - GM Engineering

AN EMERGING IRON ORE PRODUCER, UNLOCKING THE VALUE OF SOUTH AUSTRALIAN IRON ORE

SOUTH AUSTRALIA’S DEVELOPING IRON ORE HUB AUGUST 2011

DISCLAIMER

FORWARD LOOKING STATEMENTS

These materials include forward looking statements. Forward looking statements inherently involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside of the control of, and may be unknown to, the Company. Actual results and developments may vary materially from those expressed in these materials. The types of uncertainties which are relevant to the Company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the Company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Forward looking statements include, but are not limited to, statements concerning Centrex’s planned exploration program, targeted resources, commencement of exporting product and other statements that are not historical facts. When used in this document, the words such as “could”, “target”, “plan”, “estimate”, “intend”, “may”, “aim”, “potential”, “should”, and similar expressions reflected in these forward-looking statements are reasonable, such as statements involving risks and uncertainties and no assurance can be given that actual results be consistent with these forward-looking statements. 2

CENTREX’S SA ASSETS

Centrex holds iron ore rights within 16 exploration licence areas on the Eyre Peninsula including: 5 within the Eyre Iron JV; 1 in the Bungalow JV; 1 covering the Wilgerup project area; 5 in the Western Middlebacks region; and 4 further tenements. These assets are close to the oldest producing iron ore mines in Australia (the Middleback Ranges). CENTREX’S PROJECTS ARE WITHIN CLOSE PROXIMITY OF ITS PROPOSED SHEEP HILL PORT

SHEEP HILL IS WITHIN 100KMS OF BOTH MAGNETITE JVS AND 120KMS FROM WILGERUP.

WESTERN MIDDLEBACKS BUNGALOW JV EYRE IRON JV WILGERUP

EYRE PENINSULA SOUTH AUSTRALIA

TENEMENTS & JOINT VENTURES

CENTREX METALS LIMITED BUNGALOW JOINT VENTURE WISCO JOINT VENTURE

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NEED FOR A DEEP WATER PORT

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PORT LOCATION

THE PROPOSED DEEP WATER PORT SITE WILL BE LOCATED 21 KM NORTH-EAST OF TUMBY BAY, 20 KM SOUTH-WEST OF PORT NEILL AND 70 KM NORTH-EAST OF PORT LINCOLN.

CONTROLLING OUR DESTINY

CAPE VESSEL DIRECT LOADING 20m depth within 500m of the shoreline, with no dredging required LOW CAPEX ~A$180 million capex LARGE CAPACITY Potential multi-user facility with a capacity of 20Mtpa GOVERNMENT SUPPORT Major Project status declared by the SA Government (January 2011). DAC assessment criteria released June 2011. Public Environment Report (PER) Strong support from the District Council of Tumby Bay DEVELOPMENT APPLICATION Preliminary DA with Government for review PROXIMITY TO EXISTING INFRASTRUCTURE Near existing rail and social infrastructure

120 KMS TO WILGERUP < 100 KMS TO BUNGALOW JV 25 KMS TO EYRE IRON JV

6 JANUARY 2011: SHEEP HILL DECLARED AN INFRASTRUCTURE PROPOSAL WARRANTING ‘MAJOR PROJECT’ STATUS BY THE SOUTH AUSTRALIAN PREMIER AND THE DEVELOPMENT AND RESOURCES MINISTER 6

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STAGES OF DEVELOPMENT

SHEEP HILL PORT LAYOUT

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Similar Shiploader & Enclosed Gallery

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Cape Size Vessel

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SHEEP HILL PORT Proposed OWNERS TEAM

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Project Director Centrex Steve Brown Port Operator tba Grain Operator Free Eyre BFS Project Manager Parsons Brinkerhoff Geoff Sampson Environmental Golders Eng Review Team Engineering Design PB Project Controls ( Schedule / docs ) PB

Development Guidelines Released

13 Development Guidelines Released

The South Australian Government’s Development Assessment Commission (DAC) has released guidelines for assessment of the Centrex Metals Port development. The project will be assessed under the terms of a Public Environmental Report (PER). The PER will be the environmental and social impact assessment of the project. This level of assessment was considered appropriate by government given consideration the unique project features including:

• The establishment of a large shipping terminal in a rural coastal

location.

• Potential economic benefits to the region.
• Potential impacts on the surrounding coastal and marine environment

(including from shipping activities in the Spencer Gulf).

• Construction impacts (including noise, dust, odour and vibration).
• Infrastructure requirements on Eyre Peninsula.

The Development Act 1993 requires a PER to be exhibited for at least 30 business days and for a public meeting to be held during this period. Centrex plans to present the results of all studies being prepared for the PER to Port Neill and Tumby Bay communities before the public exhibition period. We will provide more information about this in our next Community Consultation Update. We aim to submit the PER to the Government in December 2011. An updated flowchart with our project schedule is provided here. A copy of the project guidelines can be found on the DAC website (http://dataserver.planning.sa.gov.au/publications/1417p.pdf).

Port Information Days

14 Update on Port Development Information Days, April and June 2011

Centrex Metals Ltd would like to say a big thank you to residents of Port Neill, Tumby Bay and Port Lincoln who took time out to meet members of our project team and learn more about the proposed Port development at our 2011 April and June Information Days and Evenings. More than 250 people attended the sessions, including a school group from Tumby Bay Area School who came prepared with dozens of questions for Centrex’s General Manager Engineering Steve Brown. Your questions are important to us. Enclosed with this newsletter is a Stakeholder Response Report collating all the questions raised during the Information Days and providing responses from Centrex. The Stakeholder Response Report has your questions grouped into categories and, where new information has become available, we have provided the latest information. Some answers are updated from the responses given at our Information Days – this reflects new information that has become available since then. Centrex will conduct a second round of consultation when the Public Environmental Report (PER) (environmental impact assessment) document nears completion. These sessions will update you on the results of environmental and other studies and seek further feedback from community. We will let you know the details closer to the time. In the meantime, community members are welcome to contact Centrex with questions

• r enquiries at any time.

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Previous ENVIRONMENTAL STUDIES

STUDIES COMPLETED SINCE 2008:

TERRESTRIAL ECOLOGY

• Flora and fauna field surveys
• Identified evidence of previous farming

activity

• No endangered species habitat or significant

vegetation

MARINE ECOLOGY

• Benthic (sediment and just below) survey
• Intertidal zone survey
• Water quality assessment
• No significant habitat identified
• Minimal seagrass disturbance expected
• Ballast water impacts to be managed

OCEANOGRAPHIC PROCESSES, WAVE AND WIND STUDY

• Data collected for summer and winter seasons
• Wave interruption effects on coast expected to

be minimal

PRELIMINARY GEOTECHNICAL AND SOIL ASSESSMENT

• Site geology and soli conditions assessed – 32

test pits and 6 boreholes installed on site and along Swaffers Road

• Data shows mostly uniform soil conditions

GOUNDWATER ASSESSMENT

• Depth and quality assessed
• Quality ranges between freshwater to brackish

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Previous ENVIRONMENTAL STUDIES

STUDIES COMPLETED SINCE 2008:

SOCIO-ECONOMIC STUDY

• Field interviews & socio-economic data review

CULTURAL HERITAGE

• Indigenous and non-indigenous heritage –

reviewed existing archival / published information, site walkover and interviews with local residents and historical societies

SEISMIC STUDY

• Sea floor data collected
• Few irregularities in the bedrock observed

VISUAL AMENITY ASSESSMENT

• 3D modelling of site and wharf undertaken

CURRENTLY UNDERWAY

• Surface Water Study
• Noise Study
• Air Quality

Additional Studies

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Sand Dune Study

The sand dunes of Rogers Beach, directly north of the Port site, were the focus of an ecological study in May and June 2011. These areas are outside the Project

• boundary. Centrex undertook the study to establish any

possible impacts the Port may have on this environment. The condition of vegetation in the dune area is natural but has been disturbed by previous activities. Centrex will not disturb this land and will maintain public access to Rogers Beach. Wave and current studies suggest there will be minimal impact upon the formation and structure of the beach due to the Port’s construction and operation. This will be further discussed in the PER.

Purple urchin, July 2011

Further Marine Ecology Survey

Additional marine ecology surveys were undertaken in July 2011. The survey included biological sampling from sub-tidal habitats. Different habitats include rocky reefs, sea grass beds and mid to deep seabed areas. Sediment sampling was also conducted. This survey is part of baseline works to examine the marine ecology inhabiting the proposed site to identify, interpret and mitigate potential impacts the proposed development may have on it.

Lipson Island Ecology Survey

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Updated 29 June 2011

Lipson Island Ecology Survey

The Lipson Island Ecology Study was conducted during May and June 2011. The objective of the study were to:

• Characterise existing land and marine flora and fauna

species and habitat

• Identify potential project constraints; and
• identify interpret and mitigate the potential impacts.

Results showed there were 19 native and 2 introduced bird species on the island, with the Silver Gull being the most common seabird. Imagery captured from the infrared cameras identified Lipson Island as a significant roost. Two species of Cormorant were found to be nesting, roosting and breeding

• n the most northern point of Lipson Island.

The study identified some potential impacts that Port construction and operation may have on the Lipson Island Conservation Park including potential noise and light

• disturbance. By ensuring the appropriate management plans

are in place during construction and operation the potential impact of the proposed development on Lipson Island is not likely to be significant.

CONTACT US

Centrex Metals Limited T +61 8 8100 2200 Jim White - Managing Director Alison Evans - Company Secretary

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