AUGUST 2012 WWW.OZMINERALS.COM
OZ MINERALS GLOBAL MAINTENANCE USG CONFERENCE AUGUST 2012 - - PowerPoint PPT Presentation
OZ MINERALS GLOBAL MAINTENANCE USG CONFERENCE AUGUST 2012 - - PowerPoint PPT Presentation
OZ MINERALS GLOBAL MAINTENANCE USG CONFERENCE AUGUST 2012 WWW.OZMINERALS.COM DISCLAIMER This presentation has been prepared by OZ Minerals Limited (OZ Minerals) and consists of written materials/slides for a pre sentation concerning OZ
OZ MINERALS • PAGE 2
DISCLAIMER
This presentation has been prepared by OZ Minerals Limited (“OZ Minerals”) and consists of written materials/slides for a presentation concerning OZ Minerals. By reviewing/attending this presentation, you agree to be bound by the following conditions. No representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the presentation or of the views, opinions and conclusions contained in this material. To the maximum extent permitted by law, OZ Minerals and its related bodies corporate and affiliates, and its respective directors, officers, employees, agents and advisers disclaim any liability (including, without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents, including any error or omission there from, or otherwise arising in connection with it. Some statements in this presentation are forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside OZ Minerals’ control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas
- f the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements which speak only as at the date of the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, OZ Minerals does not undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether as a result of any change in OZ Mineral’s expectations in relation to them, or any change in events, conditions or circumstances on which any such statement is based. Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified. OZ Minerals financial results are reported under International Financial Reporting Standards (IFRS). This presentation also includes certain non-IFRS measures including Underlying EBITDA, Underlying EBIT and Underlying NPAT. These measures are presented to enable understanding of the underlying performance of the Company without the impact of non-trading items such as impairment, impairment reversal and litigation settlement expense. Non-IFRS measures have not been subject to audit or review. The non-IFRS measures used throughout this document are defined in the appendix. All figures are expressed in Australian dollars unless stated otherwise.
OZ MINERALS • PAGE 3
SOUTH AUSTRALIA PROMINENT HILL & CARRAPATEENA
- Very favourable mining
jurisdiction.
- Close to road and rail.
- Grid power to site.
- Water supply.
- Export routes via Darwin and
Adelaide.
- Highly competitive shipping
times.
- Access to extensive, 8,000km2,
area of exploration ground in South Australia (including IMX JV ground).
OZ MINERALS • PAGE 4
PROMINENT HILL SITE
- Commissioned in
February 2009.
- Flat terrain.
- Fly in fly out workforce –
competitive rosters and conditions, employee agreement in place until July 2015.
- Workforce of 1,200.
- High standard
accommodation.
- Current operation open pit.
TAILINGS DAM MALU PIT ROM PAD PROCESSING PLANT VILLAGE ANKATA DEPOSIT AREA NORTHERN WASTE DUMP SOUTHERN WASTE DUMP TAILINGS DAM MALU PIT ROM PAD PROCESSING PLANT VILLAGE ANKATA DEPOSIT AREA NORTHERN WASTE DUMP SOUTHERN WASTE DUMP
OZ MINERALS • PAGE 5
PROMINENT HILL PRODUCTION & GUIDANCE
Product: High grade (~50% Cu), high quality, copper concentrate. Production 2011: 107,744t contained copper, 160,007oz gold. Production guidance 2012: Contained copper 100,000t to 110,000t. Contained gold 130,000oz to 150,000oz. Mine and Plant: Open pit, mine, crush, grind, flotation. Cash costs: Competitive C1 cash costs US70.4c/lb for 2011. C1 cost guidance 2012: US$1.10-US$1.20/lb.
(increase primarily as a result of underground mining)
Workforce: Approximately 1,200 (including contractors).
OZ MINERALS • PAGE 6
PROMINENT HILL UNDERGROUND DEVELOPMENT
- Production commenced at Ankata with
first stopes blasted in March 2012.
- Full mining rates (1.2Mtpa) by Q3 2012 to
2015.
- Average grade range for 2012 to be 2.3-
2.8% copper.
- Annual mine production of 1.2Mt of high
grade copper ore contributing ~25,000t
- f copper and ~ 12,000oz of gold in
concentrates.
- Pre-production capital within 10% of
budget at $148 million. Now drilling from underground.
- Decline extension to provide access beneath pit
completed by Q4 2012.
- Under pit resource drilling 2012/2013.
- View to add 1-3 years mine life from immediate near-
mine program.
- Deeper infill drilling to follow with access.
OZ MINERALS • PAGE 7 Resources 272.7Mt at 0.98% Cu, 0.7g/t Au for 2,678kt Cu, 6.3 Moz Au. Reserves: 72.3Mt @ 1.13% Cu, 0.64g/t Au for 818kt Cu, 1.48Moz Au.
For the full details of the Prominent Hill Mineral Resource and Ore Reserve Statement for 2011 go to http://www.ozminerals.com/operations/Resources--Reserves.html
2011 RESERVES & RESOURCES UPDATE
OZ MINERALS • PAGE 8
OTHER FACTS – OZ MINERALS (PROMINENT HILL)
- 130+ Indigenous employees on site at Prominent Hill
- 20 percent of our workforce are women.
- 57 Coober Pedy residents currently employed at site.
- 240 Upper Spencer Gulf residents employed at site.
- Over 250 now flying from Port Augusta.
OZ MINERALS • PAGE 9
PROMINENT HILL – 2011 ECONOMIC CONTRIBUTIONS
- Over $100 million spent on South
Australian contracts and services*.
- Over $20 million on local and regional
contracts.
- In 2011, over 20 local businesses were
employed at Prominent Hill.
- Preferred crushing contract given to
Joint Venture partner with our Traditional Owners - developing business skills for life after mining.
* This does not include major contractor spend such as Thiess and Sodexo who employ people who predominately live in South Australia.
Graeme Thornton – GT Signs
OZ MINERALS • PAGE 10
SPONSORSHIPS AND DONATIONS
- $300,000 partnership with the SA RFDS.
- Provision of copper and production costs for
SA artists to work with Copper as part of the SALA festival.
- Support of Remote Isolated Children's
Exercise (RICE) $20,000 per year.
- Support of School of the Air - three year
sponsorship package.
- Sponsorship of local sporting initiatives
including the Coober Pedy Saints and local gymkhana's and race days.
- Three year sponsorship package for “Sight
for All”- a program aimed at reducing eye disease in Indigenous communities.
OZ MINERALS • PAGE 11
OUR EXPERIENCE – HOW LOCAL COMMUNITIES CAN BENEFIT FROM MINING
- Up skill regional businesses in
tendering process and basic business skills.
- Consider developing a single point
- f contact for local suppliers.
- Better linkage between skills
development and job opportunities.
- Investment in school retention
initiatives leading to improved literacy and numeracy and sustainability of communities.
- Communities need to think
strategically about how they can benefit from mining, and engage with miners on this basis.
Coober Pedy Area School Seedling Program
OZ MINERALS • NOVEMBER 2009 • PAGE 12
AUGUST 2012 WWW.OZMINERALS.COM
OZ MINERALS
CARRAPATEENA
OZ MINERALS • PAGE 13
CARRAPATEENA COPPER – GOLD DEPOSIT IN SOUTH AUSTRALIA
- Acquired in May 2011.
- 250km south-east of Prominent Hill.
- Tenement package consists of over
1,070sq km.
- Large IOCG deposit – similar to
Prominent Hill.
- First drill results 1,060m @ 1.88% Cu.
- An initial Inferred Resource of
203Mt at 1.31% copper, 0.56g/t gold and 270ppm U3O8 in the southern area of the Carrapateena deposit.
OZ MINERALS • PAGE 14
CARRAPATEENA COPPER – GOLD EXPLORATION SOUTH AUSTRALIA
- Native title agreement reached for
exploration activity.
- Exploration camp complete.
- Infill drilling of southern area continues.
- Drilling to establish resource in
northern area.
- Scoping studies* commencing.
Mining options: sub-level open stoping, sub-level caving, block caving and hybrid. Mining inventories and rates being developed. Production schedules/early stage costs being investigated.
* These are early stage studies which occur before pre-feasibility and feasibility studies and any subsequent decision to mine.
OZ MINERALS • PAGE 15
GEOLOGY
CAR051 Chalcopyrite Mineralisation CAR061 Bornite Mineralisation
- A deep deposit with 500m of
sedimentary cover
- Mineralisation starts at 500m
and extends to 1500m below surface
- Complex hematite breccias
hosted in sericite-chlorite altered granites
- Two high grade bornite pods
surrounded by a lower grade chalcopyrite shell
OZ MINERALS • PAGE 16
CARRAPATEENA: DRILLING COMPLETED AND IN PROGRESS DURING Q2
- Exploration works continue to
upgrade resource from inferred to indicated status.
- 10 holes completed for a total of
16,360m.
- Results continue to be encouraging,
in both inferred resource area and northern exploration target area and continue to confirm current model.
- High grade mineralisation extending
beyond current resource envelope.
Chalcopyrite Zone Exploration Target Area April 2011 Inferred Resource Area April 2011 Bornite Zone Bornite Zone
DD12CAR091 DD12CAR093 DD12CAR088 DD12CAR089 DD12CAR085 DD12CAR084W2 DD12CAR092W1 DD12CAR090W1 DD12CAR086 DD12CAR087
OZ MINERALS • PAGE 17
Upper Bornite Zone Lower Bornite Zone 100m @ 1.97% Cu, 0.60 g/t Au, from 643m 153m @ 1.91% Cu, 0.92 g/t Au, from 1,099m 824m @ 1.18% Cu, 0.59 g/t Au, from 729m
DD12CAR082 Looking West DD12CAR083 Looking North
CARRAPATEENA Q2 DRILLING RESULTS: DD12CAR082 & DD12CAR083 ASSAYS
OZ MINERALS • PAGE 18
CARRAPATEENA: REGIONAL EXPLORATION
- Reviewing the regional exploration data has
produced a number of high quality, drill ready exploration targets.
- Logistics for drill testing regional targets
currently underway.
- An ‘in-house’ ground gravity survey has
commenced to refine new targets prior to drilling.
Drill target Planned Gravity Completed Gravity
OZ MINERALS • PAGE 19
THREE MINING OPTIONS
SUB LEVEL CAVING BLOCK CAVING SUB LEVEL OPEN STOPING
OZ MINERALS • PAGE 20
MINING METHODS
Pillars are left between each front
Block Cave Lift 1 Extraction Level at 1000 m Block Cave Lift 2 Extraction Level at 1400 m Sub Level Cave Top down in 25m slices
Lift 1 500m (BC) Lift 2 400m (BC)
SLOS Front 1 SLOS Front 2 SLOS Front 3 SLOS Front 4 SLOS Front 5
OZ MINERALS • PAGE 21
CARRAPATEENA: DECLINE DESIGN (SECTION VIEW)
- OZ Minerals Board
approves Exploration Decline.
- Commencement in early
2013 – Phase 1 includes, completion down to 625m for geotechnical testing by mid-2016.
- Exploration decline will
continue to a depth of approximately 1,000m for further exploration access.
Geotechnical Level 1 West Exploration Access Drive Geotechnical Level 3 Geotechnical Level 4 Geotechnical Level 2 South East Exploration Access Drive Exploration Decline Approved by OZ Minerals Board Development Subject to Further Approval by Board
LEGEND
- 3600RL-
- 4100RL-
- 4475RL-
5100RL
N
OZ MINERALS • PAGE 22
- In order to complete block cave feasibility study we need in situ
measurement of: Rock mass characteristics (structures, joints, rock strength) Rock stress conditions with depth Hydrogeology Plus additional resource drilling to depths greater than 1,500m
PURPOSE OF EXPLORATION DECLINE
OZ MINERALS • PAGE 23
PERMITTING PROCESS
Stakeholder engagement
Retention Lease Proposal Stakeholder consultation Prepare proposal Publicly exhibit proposal Respond to stakeholder feedback Obtain approval Mining Lease Proposal Environmental Impact Statement
Stakeholder engagement
Stakeholder consultation Prepare proposal Publicly exhibit proposal Respond to stakeholder feedback Obtain approval
OZ MINERALS • PAGE 24
Step 1 – Establish Baseline for Social and Environmental Aspects (Completed). Step 2 – Define Project Scope (Completed). Step 3 – Impact Assessment (Completed). Step 4 – Identify Control and Management Strategies (Following stakeholder consultation).
PERMITTING PROCESS - RETENTION LEASE
OZ MINERALS • NOVEMBER 2009 • PAGE 25
AUGUST 2012 WWW.OZMINERALS.COM
OZ MINERALS
PRE-QUALIFICATION PROCESS
OZ MINERALS • PAGE 26
What is Pre-Qualification?
Objective Screen potential contractors to establish that they have the necessary technical, SHECMS and commercial capability to undertake potential Scope of Works.
Contractors
SHECMS ✔ Commercial Capability ✔
Potential Scope of Work
OZ MINERALS • PAGE 27
What is Pre-Qualification?
Commitment OZ Minerals has a commitment to protect the environment and ensure the health and safety of all personnel on site whilst also looking after the interest of the local community.
OZ Minerals Commitment
Protect the Environment Act in the Interest of the Local Community Ensure Health and Safety
OZ MINERALS • PAGE 28
What is Pre-Qualification?
Realisation OZ Minerals is meeting this commitment by monitoring and improving commercial, safety, health, environment, community (SHEC) industrial relations and quality standards whilst working with site contractors to ensure their compliance with these standards.
OZ Minerals Contractors
Safety Health Environment Community
Monitoring
OZ MINERALS • PAGE 29
Why is Pre-Qualification so important?
Only Contractors who can demonstrate a strong commitment to OZ Minerals Standards will be permitted to work on site. Potential Suppliers that do not complete the Pre-Qualification Process, or fail to meet OZ Minerals Standards will not be invited to tender for any work at an OZ Minerals site. Importance of Pre-Qualification We intend to evaluate and verify the compliance with the previously stated standards of all potential Contractors before they are permitted to participate in the tender process.
OZ MINERALS • PAGE 30
How to get pre-Qualified?
Our strategy Steps to Pre-Qualification
Documentation
- Fill & Send Pre-Qualification Form to Kymlee Macdonald
kymlee.macdonald@ozminerals.com
Notification
- Get Receipted Notification
Outcome
- Receive Pre-Qualification Outcome in Next Fortnight
Re-Apply
- If Application is Unsuccessful: Improve and Re-Apply
OZ MINERALS • PAGE 31
What information is requested?
Our strategy Information required for the Pre-Qualification documentation: Part 1 – Contractor Commercial Details Part 2 – S&H Performance Assessment Part 3 – S&H Management Systems Part 4 – Environment & Community (E&C) Management Systems Part 5 – Quality Part 6 – Employee Relations
OZ MINERALS • PAGE 32
Part 1 - Contractor Commercial Details
- Contractor Name
- Contractor Contact Details
- Type of Business
Contractor Commercial Form includes:
OZ MINERALS • PAGE 33
Part 2 - S&H Performance Assessment
Why invest?
S&H Performance Assessment form includes:
- WorkCover Levy from current and previous year including
Industry Rating
- Injury History from current and previous years
- Injury History with OZ Minerals from current and previous
years
- Incident Frequency Rate from last year and previous year
- General Comments about S&H performance
OZ MINERALS • PAGE 34
Part 3 - S&H Management Systems
Why invest?
- Provide evidence for each following items
- Further response optional if AS4801 or OHSAS18001 certified
- Provide evidence of S&H Commitment
- Provide evidence of Management and Resources
- Provide evidence of Risk Assessment Management
S&H Management Systems form includes:
OZ MINERALS • PAGE 35
Part 3 - S&H Management Systems
Why invest?
- Provide evidence of S&H Standard
- Provide evidence of Communication and Consultation
- Provide evidence of Personnel and Training
- Provide evidence of Hazardous Substances
- Provide evidence of Transportation
OZ MINERALS • PAGE 36
Part 3 - S&H Management Systems
Why invest?
- Provide evidence of Systems of Work
- Provide evidence of Management of Change
- Provide evidence of S&H Assurance
- Provide evidence of New Plant, Equipment and Process Design
OZ MINERALS • PAGE 37
Part 3 - S&H Management Systems
Why invest?
- Complete S&H Advisor Details
- Provide evidence of Contractor Evaluation
- Provide evidence of S&H Performance and Reporting
- Provide evidence of How auditing is conducted and by
whom
- Provide evidence of Emergency Plans
- List and attach S&H Accreditations and Certifications
OZ MINERALS • PAGE 38
Part 4 - Environment & Community (E&C) Management Systems
Why invest?
- Provide evidence for each following items
- Further response optional if AS14001 or ISO 14001 certified
- Provide evidence for environmental management
- Provide evidence for the Personnel & Training system in place
- Provide evidence of How auditing is conducted and by
whom E&C Management Systems form includes:
OZ MINERALS • PAGE 39
Part 4 - Environment & Community (E&C) Management Systems
Why invest?
- Complete E&C Advisor Details
- List and attach E&C Accreditations and Certifications
OZ MINERALS • PAGE 40
Part 5 - Quality
Why invest?
- List and attach E&C Accreditations and Certifications
Quality form includes:
OZ MINERALS • PAGE 41
Part 6 - Employee Relations
Why invest?
- Provide details about Workforce Profile
- Provide details about Industrial Activity in last 5 years
Employee Relations form includes:
OZ MINERALS • PAGE 42
Part 6 - Employee Relations
Why invest?
- Provide details about Employee Relations
- Provide details about Practices
- Provide details about Litigation
OZ MINERALS • PAGE 43
What happens after Pre-Qualification documentation is submitted for review?
Why invest? Once Reviewed : You may be asked to provide further information to support your Pre- Qualification submission prior to approval. Receive formal notice of your Pre-Qualification Status – Approved or Rejected.
Reviewing Result Provide Further Information
- r
OZ MINERALS • PAGE 44
What does Pre-Requisition approval mean to my business?
Once Approved
- Your company details will be recorded in a master bidder list.
- When a suitable Scope of Works becomes available for tender, if your company
profile fits the work to be carried out, then you will be issued with a tender pack for submission.
- Only Pre-Qualified companies will be asked to tender on work associated with
any of our OZ Minerals sites. Why invest?
Company Details Recorded Scope of Work Available for Tender Tender Pack Issued for Submission
OZ MINERALS • PAGE 45
Are contracts & Pre-Qualifications transferable between sites?
Transfers
- Pre-Qualification are transferable between OZ Minerals mining Sites.
- Contracts are not transferable between OZ Minerals mining sites.
Why invest?
OZ Minerals Carrapateena Pre-Qualification OZ Minerals Prominent Hill Pre-Qualification OZ Minerals Carrapateena Contract OZ Minerals Prominent Hill Contract
OZ MINERALS • PAGE 46
Question and Comments
Why invest? Thank you !
OZ MINERALS • NOVEMBER 2009 • PAGE 47
AUGUST 2012 WWW.OZMINERALS.COM