US Operations Overview. Shane Tilka General Manager US Operations May 2014

Transcription

1 US Operations Overview Shane Tilka General Manager US Operations May 2014

2 Structure 1. US Operations Overview 2. Current Operations and Assets 3. Hickory & Aurelian Springs Project Update 4. US Exploration 2

3 US Current Operational Overview Concord Mine Site (Sussex and Dinwiddie Counties) Commissioned in 1997 Current ore reserves 3.3mt of ore mined per annum Idled in April 2014, with ore remaining to be mined Brink Operations (Greensville County) Commissioned in 2009 Current ore reserves 5%HM 3.3Mt of ore mined per annum Current ore reserves forecast to be exhausted in 2016 Mineral Separation Plant at Stony Creek (Sussex County) Capacity to treat ~450kt of HMC Capacity to produce ~300kt ilmenite and ~45kt zircon Centre of US operational support and US Laboratory 3

4 Human Resources Human Resources 158 US employees in total (including marketing and exploration) 142 US employees directly associated with US Operations 51% of employees are from within local counties (Sussex, Greensville, Dinwiddie) 11% female diversity Operational and technical competency are the key areas of focus for 2014 Supervisor development program established GM US Operations US Production Manager Environmental Superintendent H&S Specialist Rehabilitation Superintendent Human Resources Manager VP Finance Planning & Development Manager 4

5 Safety Performance (USA) LTIFR is 0 TRIFR reduction of 62% since March 2013 SPL roll out planned for 2014 to improve safety culture & competency 5

6 US Geological Overview Geological formation & history: All deposits located within the Fall Zone from central Virginia to North Carolina C.R Berquist Jr, of Virginia Division of Mineral Resources published discovery of HM concentrations in the area in 1987 Report is credited with attracting industry interest to explore the area 1989 Discovery of the Old Hickory deposit N 6

7 US Operations Overview Distance from Stony Creek: Richmond ~50 miles Concord Mine ~14 miles Brink Mine ~31 miles Hickory Mine ~12 miles Aurelian Springs Mine ~55 miles Hickory Stony Creek Concord Brink Aurelian Springs N Key Active Mine Site Mineral Processing Plant Reclamation Site Proposed Site 7

8 US Operations Sales & Production History 8

9 Mining Process Mining Summary Mining Unit (MU) capacity of ~ 500tph Unit designed around ease of mobility Innovative shredder concept utilized Low cost mining method Minimal overburden removal Concentrating Summary Concentrator capacity of ~260tph RHF 4 stage spiral separation circuit with Attritioner & Hydrosizer circuit to complete upgrade process Current focus areas Runtime improvement +90% target Brink recovery improvement program Mining contract productivity review 9

10 Brink Mine Plan Overview 2014 key attributes: Currently mining Plum Creek mining field Kline property move Independence Church Road 10

11 Concord Mine Plan Overview 2014 key attributes: Operation was idled on the 11 th April Key personnel retained for re-start Remaining 8 months of ore to be rescheduled Minor capex to access remaining ore 12 week restart timeframe if required 11

12 MSP MSP Summary Feed rate of ~55tph Feed capacity ~450kt HMC pa Ilmenite production ~300kt pa Zircon Production ~45kt pa Current focus areas Recovery improvement program targeting zircon wet circuit and hydrosizers 12

13 Virginia Rehabilitation ~1,600 acres of reclamation completed over the life of Virginia Operations ~2,000 acres of disturbed open area requiring rehabilitation Long term partnership with Virginia Tech, with annual funding provided focus on improving rehabilitation methods to improve cropping productivity 90 acre research farm established in 2004 pine reforestation study topsoil study 13

14 Mineral Sands Operational Overview Market and operational flexibility created through integration across regions Successful trials of VA ilmenite in both Mid West and South West WA kilns in 2013 produced commercial quantities of high quality SR (TiO2 > 94%, U+Th < 45ppm) 14

15 Hickory - Project Overview Known deposit - mined since 1997 Mined until 2009 Securing of leases - mostly farmland Construction of new concentrator and mine infrastructure 60% capacity increase on current assets 6-10 year mine life Hickory Concentrator Site 15

16 Hickory Engineering Progress Conditional Use Permit approved County Site Plan approval due 30 May State Mining Permit amendment due 30 June Process optimized with Iluka MTF Team Design complete: - P&IDs - general arrangement drawings - detailed engineering drawings - equipment lists - civil and storm water drawings - initial vendor bids received 16

17 Hickory Looking Forward Secure appropriate commercial arrangements Construction timeframe 15 months 17

18 Aurelian Springs Deposit Deposit is southwest of Roanoke Rapids 55 miles south of the MSP in Stony Creek Halifax County, North Carolina in the area of Aurelian Springs Phase I Relocation of Concord to Aurelian Springs North PFS concluded in 2013 DFS scheduled completion 2014 relocation timing TBD tentatively 2016 Phase II Relocation of Brink to Aurelian Springs South leasing activities included in Phase I scope relocation timing TBD Brink is currently scheduled to exhaust deposit in

19 Aurelian Springs North DFS Components of the DFS scope: Metallurgical testing MSP upgrade engineering Permitting Exploration Community relations Securing mineral and access leases for Auerilian Springs North and South Developing a process water supply Relocation engineering and mine establishment design 19

20 Aurelian Springs - Status Update Securing mineral and access leases for AS North and South 85% of HM secured by mining leases for AS North concentrator site and connectivity secured for AS North Permitting county permit secured finalizing permit packages for mining, and water quality permits no wetland impacts proposed for first 3+ years of mining permitting for future wetland impacts will continue with no impact to schedule DFS to be completed

21 US Exploration Update US Exploration Office Nashville Pipeline of good quality exploration targets ranging from: early stage generative activities working with the Project Generation team in Perth to more advance stage activities involving land agreements and drilling Exploration drilling in the Camden region of western Tennessee 4,880m Aircore (Q1) following up on encouraging results from 2013 drilling assays, mineral test work, resource modeling and financial studies (Q2/Q3-2014) samples processed at Stony Creek laboratory, mineral quality in Western Australia Generative program yielded targets in North and South Carolina currently securing land for drilling to start mid year new untested, targets currently being worked up in other states 21

22 Community Relations Sussex, Dinwiddie and Greensville Counties ~60,000 residents ~60% African American Median household income $32,000 12% of families living below the poverty line Out of 132 localities ranked in bottom 4 in health outcomes Iluka s community presence Partnership established with Greenville YMCA Partnership with Jackson-Field Homes mission to treat children mental illness Landowner mineral royalties have increased the wealth of the region Halifax County Adopt-A-School program Community College Partnership Career Studies Certification in Mineral Mining 22

23 Iluka Resources Limited For more information, contact: Robert Porter, General Manager Investor Relations / +61 (0)