Arrium Mining GMUSG
Gavin Hobart, General Manager Development
21 August 2013
GMUSG Gavin Hobart, General Manager Development 21 August 2013 - - PowerPoint PPT Presentation
Arrium Mining GMUSG Gavin Hobart, General Manager Development 21 August 2013 This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Arrium and certain plans
Gavin Hobart, General Manager Development
21 August 2013
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This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Arrium and certain plans and objectives of the management of Arrium. Forward-looking statements can generally be identified by the use
and other factors, many of which are outside the control of Arrium, which may cause the actual results or performance of Arrium to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this presentation. Factors that could cause actual results or performance to differ materially include without limitation the following: risks and uncertainties associated with the Australian and global economic environment and capital market conditions, the cyclical nature of the steel industry, the level of activity in the construction, manufacturing, mining, agricultural and automotive industries in Australia and North and South America and, to a lesser extent, the same industries in Asia and New Zealand, mining activity in the Americas, commodity price fluctuations, fluctuations in foreign currency exchange and interest rates, competition, Arrium's relationships with, and the financial condition of, its suppliers and customers, legislative changes, regulatory changes or other changes in the laws which affect Arrium's business, including environmental laws, a carbon tax, proposed mining tax and operational risk. The foregoing list of important factors is not exhaustive. There can be no assurance that actual outcomes will not differ materially from these statements. The information in this presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Paul Leevers, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Leevers is a full-time employee of OneSteel Manufacturing Pty Ltd. Mr Leevers 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'. Mr Leevers consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.
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SOUTHERN IRON EXPLORATION LEASES SOUTHERN IRON REGION MIDDLEBACK RANGES REGION CURRENT IRON ORE OPERATIONS HIGHWAY RAILWAY
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Southern Iron and Whyalla Port expansion projects
Peculiar Knob Mine Site
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Key Milestones
Southern Iron acquisition and Port development
(commissioned July 2013)
MBR upgrades
Business doubled on time and budget
2000 4000 6000 8000 10000 12000 14000
Sales s k (d (dmt mt) Middleback Southern Iron
Iron Ore Sales
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Reasonable aspirations for 12Mtpa for at least 10 years
Mt
Current reserves as per FY13 JORC 67 High grade generated through beneficiation of existing low grade stocks1 10 High grade generated through mining of beneficiation of low grade reserves to be mined from current pits1 7–10 Conversion of inferred resource inside current pit shells to reserve 10 94 – 97 Additional excluded resource from current exploration program (Buzzard, Chieftain, Princess, Peculiar Knob) – high confidence2 30 – 40 124 – 137
Other opportunities
1 History of converting ~2Mt of LGO to ~1Mt of HGO through beneficiation. Increased beneficiation capacity enables ~4Mt of LGO to be converted to ~2Mt of HGO pa 2 Targeted as potential new resource - high level of confidence of bringing on at least 30-40Mt of 93Mt excluded resource currently declared
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Accommodation Village - Camp site Crushing & Screening Plant - Wirrida Rail Loop - Wirrida Heavy Maintenance Facilities – PK Mine site Wirrida Crushing & Train Loading Peculiar Knob Mine Site
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South Australia
ADELAIDE
Port Augusta
WHYALLA
Iron Knob Iron Baron Iron Duke Kangaroo Island
Ardrossan Coffin Bay
IRON KNOB IRON BARON
WHYALLA
IRON KNIGHT IRON DUCHESS
IRON DUKE
Camel Hills Cooyerdoo Katunga Hills
Spencer Gulf
North Middleback Range South Middleback Range QUARTZ QUARRY
IRON CHIEFTAIN
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Middleback Region
rail network, with G&W operating rolling stock to move ore from mines to Port
across the Middleback Range of mines
Iron Knob area
Iron Baron area
Queen*, Cavalier*
screening for both DSO and Beneficiation feed
North SMR area
South SMR area
crusher and magnetite concentrator
50km range
*New Developments
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Iron Knob mining area development
1 Excludes impact of IFRIC 20 Deferred Stripping (change in accounting standard effective 1 July 2013)
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Magnetite optimisation project
circuit
concentrate washing
– ~400kt of additional ore product (pellets, lump or concentrate) total pellets ~2Mt – Reduction in mining activity, reducing cash outlays – Consumption of stockpiled magnetite ore – Steelmaking operating efficiencies through higher Fe and less silica
1 Project commenced 2H13. FY13 cash spend $34 million.
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the 9 path model in late April, with the additional wagons in service from mid May (12th), is now also demonstrating capability to support the required rate
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Narrow Gauge (MBR):
the capability to support the required 9.5Mtpa Rate
Standard Gauge (SI):
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Outer Harbour with Iron Ore Jetty Inner Harbour with Blast Furnace Wharf
Existing Ore Storage Shed Narrow Gauge rail line to outer harbour
Expansion site at Inner harbour
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Outer Harbour No 2 Jetty
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The Inner Harbour Port in Operation:
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An outer harbour capable of >6 mtpa servicing Arrium Mining
An inner harbour capable of >6mtpa servicing Mining and the Steelworks
capacity each)
13mtpa Transhipment fleet with 3 transhipment points
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prospective Gawler Craton
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– Reached 12Mtpa sales run rate June – Port on track for 13Mtpa July (commissioning of high capacity ship loader)
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