FACING NEW CHALLENGES NIUGINI NICKEL LIMITED 100% SUBSIDIARY OF - - PowerPoint PPT Presentation
FACING NEW CHALLENGES NIUGINI NICKEL LIMITED 100% SUBSIDIARY OF - - PowerPoint PPT Presentation
WOWO GAP NICKEL LATERITE PROJECT EL 1165, EL 1979, EL 1980 FACING NEW CHALLENGES NIUGINI NICKEL LIMITED 100% SUBSIDIARY OF RESOURCE MINING CORPORATION Technical Disclosures and Forward-Looking Disclaimers This presentation has been
This presentation has been prepared by Resource Mining Corporation Limited (“RMC” or the “Company”). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation contains forecasts and forward looking information. Such forecast, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. RMC have not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, RMC make no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation. You should not act or refrain from acting in reliance on this presentation material. This overview of RMC does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investments decision.
Competent Persons Statement: The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based
- n information compiled by Mark Hill, who is a Member of the Australian Institute of Geologists. Mark Hill is a
director of Exman Consultancy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mark Hill consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.
Technical Disclosures and Forward-Looking Disclaimers
Warwick Davies Managing Director Bill Mackenzie NE Chairman Zhang Chi NE Director Mark Hill Exploration Manager Francis Casper Country Supervisor PNG
Str uc tur e
ASX Code RMI Shares currently on issue 2,700M Shares – fully diluted Market Cap A$2.7M Cash (Mar 30 2013) A$2.1M Top 20 shareholders 73.8% Sinom (Hong Kong) Ltd 43%
Boar d & Senior Management Assets
PNG - WOWO Gap – Nickel
WA Tenements
R egister ed Offic e
702 Murray Street West Perth 6065 Western Australia
Corporate Overview
New Challenges for Niugini Nickel
What are they? Commodity Cycle/World Economy
- Depressed nickel prices (Current price US$13,500/tonne(1) vs
US$19,400/tonne 5 years ago)
- Investors risk averse
- Equity raising very difficult for junior explorers
Increasing compliance costs/complexities Meeting growing expectations of all stakeholders Finding additional operational efficiencies Project Development
(1) Kitco historical data
Established mining industry and mining regulations Proximity to Asian markets 35km from potential coastal export site Fixed wing to nearby Embessa or Obea
WOWO Gap – Nickel Laterite Project
- Mineralisation is open to the north and south of current resource model
- Grant of EL 1979 and EL 1980 (neighbouring exploration leases) in 2012
- Ultramafic unit extends into EL1980, possibly EL1979
Significant Exploration Upside
1 2 3 4 5 6 7 8
Global Nickel Oxide Resources
Mt of Contained Metal
125 Mt @ 1.06% Ni and 0.06% Co (JORC
2004)
70% of holes Ni>1% 12 km strike length 570 holes drilled Total contained Ni 1.32 Mt
Source: Intierra RMG and various industry research Reflects 100% of projects
A Globally Significant Nickel Project
Stainless Steel Non‐Ferrous Alloys Alloy Steels Plating Foundry Batteries Other Stainless Steel
- Nickel (Ni) is primarily used for the production of stainless steel (66%) and super
alloys (12%)
- Nickel has many applications within construction, electronics, transport, energy,
medicine, food production and consumer goods
- The factors which make nickel and its alloys valuable commodities include
strength, corrosion resistance, high ductility, good thermal and electric conductivity and catalytic properties
Nickel Uses
- Stainless steel production has a long track record of healthy global growth, ~5.3% pa since 1975
- Much of the growth in the last decade has been driven by China – now ~40% of global demand
- Ongoing urbanisation and population growth, particularly in Asia will underpin long-term demand growth
Global Stainless Steel Production 2012
USA Brazil EU Other Europe Japan
- S. Korea
Taiwan S Africa China India
China
Source: Heinz H. Pariser, June 2013
Stainless Steel Growth
- Nickel is sourced from two primary deposit types, nickel laterite and nickel sulphide
- Nickel sulphides make up 40% of current global production of Ni but only 27% of new global Ni
resources
- Laterites are generally shallow (open pit) and therefore cheaper to mine than sulphides
(underground)
- Iron oxide content associated with laterites present unique opportunities for stainless steel production
- Chinese processors have dramatically increased their demand for laterite ore since 2008 (+380%) for
the manufacture of Nickel pig iron (NPI) which in turn is used for the production of stainless steel
Laterites 73%
Sulphides 27%
Global nickel resources by ore type
Laterites Sulphides 50 100 150 200 250 300 350 400 450 500 2008 2009 2010 2011 2012 2013f
NPI Production in China Kt
Source: Shanghai Tsingshan Mineral Co Ltd, June 2013
Nickel Laterites / Nickel Pig Iron
Traditional stainless steel production
- Pure nickel is melted together with pig iron and/or scrap steel, chromium, manganese and silicon in
an electric furnace to produce various grades of stainless steel Nickel Pig Iron as a precursor to stainless steel production
- Developed in China as a cheaper alternative to using pure nickel
- Utilises laterite nickel ores rather than pure nickel
- Laterite nickel ore is mixed with coking coal and a mixture of fluxes
- Mixture is heated in either a blast furnace or an electric furnace depending on desired grade
- Use of Rotary Kiln Electric Furnaces (RKEF) now driving growth of NPI
- The NPI process short-circuits the typical costly hydrometallurgical route for producing nickel
- NPI contains 4 to 15% nickel. The rest of the metal is pig iron – an important advantage since iron is
also needed to produce stainless steel
- Tsingshan Iron and Steel, “Every Chinese mill’s primary mission: minimise usage of pure nickel and
maximise usage of NPI”
Stainless Steel Production
- The rapid growth in the use of RKEF means the NPI sector is the main supplier of nickel to the
stainless steel market
- Cost of RKEF is ~10% lower than traditional electric furnaces and produces a higher grade
product
- Four Chinese RKEF operators currently trialling new technology that promises to reduce
energy consumption in the RKEF process by a further ~70%
10% 90% RKEF Electric Furnace
2011
40% 60% RKEF Electric Furnace
2012
55% 45% RKEF Electric Furnace
2013f
Increasing Ratio of NPI Production by RKEF (China)
Source: Shanghai Tsingshan Mineral Co Ltd, June 2013
Rotary Kiln-Electric Furnace Growth
- Saprolite is magnesium‐silicate ore with a relatively high Ni content and low cobalt,
iron and moisture content
- Saprolite has traditionally required a different processing route to Limonite
- Value of WOWO Gap saprolite not realised in 2009 PFS as not amenable to High
Pressure Acid Leaching (HPAL)
- WOWO Gap ore is 66% saprolite which is required for the production of high grade
Chinese NPI using RKEF’s – driven by the rising popularity of 300‐series stainless steel
- Opportunity to ship saprolite ore direct to China
- Limonite is effectively a highly weathered low‐grade iron ore with a relatively low
nickel and magnesia content and high cobalt, silica and moisture content
- Certain steel smelters in China blend nickel limonite ore with conventional iron ore to
produce stainless steel feed products
- Limonite can also be used in RKEF’s to produce 200‐series stainless steel
- Additional opportunity to deliver Limonite ore to the recently commissioned Ramu
project in PNG
Saprolite v Limonite
WOWO Gap 3rd party HPAL
Ni‐Co Hydroxide
Chinese RKEF
High grade NPI
Limonite Saprolite Japanese FeNi Smelter
Ferronickel
Chinese Blast Furnaces
Low grade NPI or PI
Next generation on site processing
Saprolite & Limonite in one flowsheet
WOWO Gap Processing Options
NEW CHALLENGE
- Laterite ore used in Chinese NPI originates primarily from Indonesia and the Philippines
- Imports from these countries have grown exponentially since 2008
- Indonesian Government will ban unprocessed Ni ore exports from Jan 2014
- Indonesia represents around half of the current nickel laterite feed source for Chinese SS
producers and is the world’s largest producer in terms of nickel content
- Processed nickel production in Indonesia will not quickly eventuate to fill Chinese supply gap
- New sources of laterite ore will be required – significant opportunity for WOWO Gap Project
Indonesian Supply Gap
Development Options
- Nickel ore to be trucked from WOWO Gap site to coastal export point (~35km)
- A landing barge will transport nickel ore from shore and secured to barge
mounted crane for loading
- Midstream loading ‐ a barge‐mounted crane will be stationed beside an ocean‐
going vessel
- Used successfully in New Caledonia
- Cost effective export solution
Ore to Market: Shipping Opportunities
NEW CHALLENGE
Better define Saprolite/Limonite parameters Scoping study Further resource drilling Definitive Feasibility Study Finance & JV partner Commissioning
WOWO Gap Development Pathway
NEW CHALLENGE
Large, globally significant Nickel laterite JORC resource Rapidly growing demand for nickel laterite ore in China Close to proposed coastal export point proximity of WOWO Gap Project to Asian markets Strong market for WOWO Gap Saprolite – value not accounted for in 2009 PFS Significant exploration upside in adjacent licence areas Highly experienced and innovative team Stable jurisdiction with progressive mining regulations and taxation system Responsible corporate citizen, well regarded in PNG
Investment Opportunity
Thank you
2011 Mineral Resource Estimate (JORC 2004) Mt Nickel (%) Cobalt (%) Indicated 72 1.03 0.07 Inferred 53 1.09 0.06 Total 125 1.06 0.07 Contained Metal (kt) 1,325 83
1. Figures may not add due to rounding 2. Mineral Resources are reported using a cut‐off grade of 0.8% Ni 3. Mineral Resources which are not Ore Reserves do not have demonstrated economic viability