Site Visit to Sishen Mine 14 April 2010 Summary: Kumba Iron Ore - - PDF document

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Site Visit to Sishen Mine 14 April 2010 Summary: Kumba Iron Ore - - PDF document

Site Visit to Sishen Mine 14 April 2010 Summary: Kumba Iron Ore Large hematite ore body: 14km x 3 2km x 400m: 2 4bt resource 1 6bt reserve Large hematite ore body: 14km x 3.2km x 400m: 2.4bt resource 1.6bt reserve Hard


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SLIDE 1

Site Visit to Sishen Mine

14 April 2010

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SLIDE 2
  • Large hematite ore body: ±14km x 3 2km x 400m: 2 4bt resource 1 6bt reserve

Summary: Kumba Iron Ore

  • Large hematite ore body: ±14km x 3.2km x 400m: 2.4bt resource 1.6bt reserve
  • Hard ore: 60:40 lump to fine ratio
  • Mining started in 1953; First ore exported in 1976
  • Highly mechanized continuous blending mining operation

Highly mechanized, continuous blending mining operation

  • Entire Run-of-Mine (ROM) beneficiated

– Dense medium separation (DMS) - drums and cyclones – JIG gravity separation – Coarse, medium and fine jigs

  • Products

– 25mm 66% Fe lump – 25mm 64% Fe lump – 27 and 20mm 66% Fe lump – niche products – 27 and 20mm 66% Fe lump – niche products – 8mm 65% Fe course sinter – niche product – 6.3mm 64% Fe fines

  • Consistent product quality is ensured through final product blending and reclaiming at

Sishen before dispatch to customers Sishen before dispatch to customers

  • Export ore is transported via the Sishen-Saldanha Iron Ore Export Channel (IOEC) to

Saldanha port

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SLIDE 3

Sishen Mine Management Team

Andrew Loots General Manager Hannes Cronje Mining Manager Lambert Mostert Engineering Manager Nico Smit Plant Manager Retief Louw Manager BI Gerhard Brits Projects Manager Susan Bezuidenhout Manager HR Hannecke Da Silva Manager Finance Anel Marais Manager SD Howard Nicholas Manager SHE Supply Manager Vacant

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SLIDE 4

Safety: LTIFR Sishen and Safety Achievements 2009

LTIFR Sishen Mine 2010 YTD

LTIFR - SISHEN MINE - 2010 - YTD

0.85 0.8 0.9

  • LTIFR = 0.09, the best ever.

LTIFR – Sishen Mine – 2010 – YTD

0 51 0.6 0.7

  • TRCFR = 1.32, the best ever.
  • LTIs for the year 2009 = 9, the best ever.
  • Man hours worked without LTI = 5 443 746, the best ever.
  • Safe days = 102, the best ever.

0.48 0.51 0.29 0 3 0.4 0.5

  • Fatalities = 0, the first year since 2004 without a fatal.

0.22 0.23 0.14 0.09 0 06 0.1 0.2 0.3 2010 - Sishen Target - 0.06 0.06 HISTORY 0.85 0.48 0.51 0.29 0.22 0.23 0.14 0.09 ACTUAL 0.13 0.17 2002 2003 2004 2005 2006 2007 2008 2009 Jan- 10 Feb- 10 Mar- 10 Apr- 10 May- 10 Jun- 10 Jul- 10 Aug- 10 Sep- 10 Oct- 10 Nov- 10 Dec- 10 SISHEN TARGET 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06

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SLIDE 5

View of ore body

  • SWEP
  • Waste ramp up

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SLIDE 6

Summary of Production trends

2006 200 2008 2009 2006 2007 2008 2009 Total Tons Handled (Including Contractors) 108,146,936 122,223,344 128,852,640 152,961,734 ROM to Crusher Production 32,252,855 32,965,188 44,282,717 52,169,049 Expit Waste 59,081,159 65,696,664 64,207,926 81,266,739 Expit Stripping Ratio 1.902 1.713 1.440 1.758 Resource (Mt) 691.5 1,316.00 1,565.30 1,362.10 Reserve (Mt) 1,053.80 1,032.50 956.9 911.5 Truck Fleet (Primary Equipment) 55 55 62 Shovel Fleet (Primary Equipment) 15 14 16 Production 2006 2007 2008 2009 Production 2006 2007 2008 2009 DMS 28,691,977 29,550,673 28,394,804 28,957,233 JIG 172,928 4,746,532 10,430,445 Additional 897,270 Total Production 28 691 977 29 723 601 34 038 606 39 387 678 Total Production 28,691,977 29,723,601 34,038,606 39,387,678

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SLIDE 7

Jig Plant Flow Diagram

Feed Bunkers 3331 tph

6500 hpa SEP ROM FEED Bed 1

SEP ROM FEED Bed 2

TERTIARY Crusher & Screening

21.7Mtpa 3981 tph

5451 hpa

BENEFICIATION 8 M d l 3179 tph

6825 hpa

BENEFICIATION 8-Modules Coarse JIG nr 1

p

Blending beds

  • 8mm

dewatering 1998 tph Fine JIG nr 1 Medium JIG nr 1 Lump Fine 7,9 Mtpa 5,1 Mtpa Blending beds Final Products Mtpa Mtpa

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SLIDE 8

Monthly Jig Plant Yield

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Monthly Jig Plant Yield

50 60 eld 30 40 Average Monthly Yie 10 20 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Month

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DMS Plant Flow Diagram

Washing & Screening Fine Cyclone Coarse Cyclone Medium Drum Coarse Drum PRIMARY & SECONDA RY Crusher TERTIARY Crusher Up Current Classifier DRS Screenin g IN-PIT Crusher Blending beds Fi l P d t Quaternar y Crushing Quaternar y Screening Final Products Fine Ore 5mm C.S Ore 8mm DR Ore 20mm DRS Ore 27mm Lump Ore 25mm

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SLIDE 10

Monthly Product to waste loss(%)

3 2.5 1.5 2 uct to Waste (%) 0 5 1 Produ Target=0.8% 0.5 M a y J u n e J u l y A u g u s t S e p t e m b e r O c t

  • b

e r N

  • v

e m b e r D e c e m b e r J a n u a r y F e b r u a r y M a r c h S e N D

Months (2009 to date)

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Asset Optimisation

P j t B k I iti l hi t Project Bokamoso: Initial achievements

KPIs Baseline February 2010 performance % improvement vs. baseline Trucks and Shovels Daily tonnes handled 218kt 305kt +40 OEE 51% 64.8% +27 Mean time to repair (shovels) 2.39 hours 1.7 hours

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D illi d D il t Drilling and Blasting Daily metres drilled 1558m 2454m +57 OEE 39% 48.1% +23 Jig Plant Daily ROM stacked 58kt 61kt +5

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Asset Optimisation

P j t B k I iti l hi t Project Bokamoso: Initial achievements

290000 310000 330000 230000 250000 270000 290000 150000 170000 190000 210000 e r r y n l g p ct v c n b Baseline Mar Ap May Jun Ju Aug Sep Oc Nov Dec Jan Feb TTH Baseline 2 per. Mov. Avg. (TTH)

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Social and Community Development Initiatives

Education

  • Whole school development
  • Teacher development

Multipurpose Skills Training Centre

  • Enterprise development:
  • Teacher development
  • Integration of SD into HR

interventions

  • Rural libraries
  • Early Childhood

Development

  • Enterprise development:

training, mentoring, support

  • Various skills programmes
  • Community access (rural)

Health

  • UGM Clinic

Development

2010: 2010: Priorities

SLP

  • Delivering long term

sustainable value SIOC Community Development Trust

  • Alignment
  • Partnerships

Small business Start-up Hubs

  • Expand Sishen Hub
  • New business hubs at

Thabazimbi and Kolomela

  • Partnerships

Thabazimbi and Kolomela

  • Resourcing the hubs
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SLIDE 14

Summary

There are five distinguishing features of Sishen’s operations and products: There are five distinguishing features of Sishen s operations and products: At Sishen Mine we …

  • passionately care about our people, environment and the community
  • have experience in mining and beneficiating iron ore
  • supply on a reliable basis a product of constant quality and superior physical

properties to our clients

  • are used to operating is a challenging environment with year-on-year growth
  • deliver on our promises

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