Mozambique's New Independent Coking Coal Project Andrew Matheson Executive Director Minas de Revuboè Maputo, 5 th July 2011 Disclaimer: The information in this presentation is provided by Minas de Revuboe (the “Company”) for information purposes only. No representation or warranty is made with respect to the accuracy, completeness or reliability of the information. Any forward looking information provided by the Company has been prepared on the basis of a number of assumptions which may be incorrect. This document should not be relied upon for any purpose as a recommendation by the Company.
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Mozambique's New Independent Coking Coal Project
Andrew Matheson Executive Director Minas de Revuboè Maputo, 5th July 2011
Disclaimer: The information in this presentation is provided by Minas de Revuboe (the “Company”) for information purposes only. No representation or warranty is made with respect to the accuracy, completeness or reliability of the information.Any forward looking information provided by the Company has been prepared on the basis of a number of assumptions which may be incorrect. This document should not be relied upon for any purpose as a recommendation by the Company.
Minas de Revuboè Ltda in Mozambique
Partnerships
Talbot Group 58.9%
Nippon Steel33.3%
Posco7.8%
Moatize Basin -Tete Region
Located in Tete Region, Moatize Basin Prospecting Permit 693L RevuboèCovers area of 3,860 hectare Focussed on a single project area only
Revuboè
Objectives
Corporate Establish Revuboè and build capability within Mozambique Establish infrastructure
Camp and facilities on site at Tete Offices Maputo
People Improve Government liaison Community involvement
Secure Tenure Complete and lodge Mining Concession application ahead of prospecting
permit expiry EIA Social and Labour Plan Mining Concession Submission (including Feasibility study)
Advance development of the project
Approach to the Community
Education & Training Primary Secondary Tertiary Vocational / trade training Scholarships
Infrastructure Medical Community centre Sporting facilities Transport Clean Water Housing
Health HIV Awareness Malaria Cholera Nutrition Emergency Care Immunizations Water Quality
Philosophy Minimise community dislocation
Partnerships with local communities Prioritise local employment from
effected communities Support
Environment andSustainability Responsible development Integrated to operations Safe place work
Note: *JORC GuidelinesAll figures are air dried basis
Project Development
Assumptions:
Secure TenureTiming for start up subject to Regulatory approvals and delivery of port and rail capacityPort and rail capacity restricted in first 5 YearsRamp up to 5Mtpa HCC product by Year 7 CHPP construction staged to this scheduleMining exclusion corridor on Marangozi River (500m)Mine schedules developed based on a 25 Year mine life for hard coking coal production
2 Truck dump stations ROM coal hoppers 700 tonne capacity Primary crushing to 200mm Secondary crushing to 50 mm at nominal capacity of 4,000 tph
Raw coal rejects system Surge bin of 1,500 tonne capacity
2 Coal preparation module- each rated at 1,200 tph Two stage dense medium cyclones Reflux clarifier Flotation
Dual product handling system rated at 2,000 tph Pair of product reclaim tunnels for handling to the train loadout
Coarse rejects system including tailings filtration and co-disposal system, reject conveyor, rejects bin (1,000 tonne)
Coal Handling Facilities
Fine Coal CircuitCoarse Coal Secondary StageCoarse Pre-scalp
Quality and Markets
Metallurgical Coal Demand
Thermal Coal Demand
Product Quality Hard Coking Coal
Coal quality programme at ACIRL/ALS completed June 2011Composites for each seam at target 10.5% ash and averaged
Seam IM Ash Volatiles TS Phos CSN
Andre 1.0 10.5 26.8 1.05 - 8.4
Grande Falesia 0.6 10.5 24.6 0.89 - 8.6
Intermedia 0.8 10.5 25.2 0.90 - 8.7
Bananeiras 1.1 10.5 23.2 0.98 0.067 8.3
Chipanga 0.9 10.5 20.9 1.08 0.080 7.9
Nominal Spec.* 1.0 10.5 22.0 1.04-1.24** 0.085 8*Typical Product Bananeiras and Chipanga seams only** Increases with pit development to the west
Product Quality Thermal Coal
High ash, low volatile, bituminous coal Thermal as a secondary product Based on limited data at this stage Substantial work yet to be completed to establish spec and approach to marketing
Seam Ash(% adb)
CV(MJ/kg adb)
Volatiles(% adb)
TS(% adb)
Andre 24.0 26.7 24.0 1.08
Grande Falesia 24.0 26.7 21.1 0.87
Intermedia 24.0 26.7 21.8 0.78
Bananeiras 24.0 25.2 19.8 0.93
Chipanga 24.0 25.7 17.9 1.02
Nominal Spec 24.0 26.0 19.0 1.1
Challenges
Rail and port infrastructure solutions
Project delivery in a rapidly expanding region
Developing and maintaining trust and productive relationships in the community in which we operate
Integrating new information into the planning and development of the project
Stewardship of the Revuboè business
Summary
Start-up clearly subject to delivery of a robust port and rail solution
Feasibility study has been based on Phase 4 resource work, project improving with technical understanding
We have seen a 30% increase in resources with upper seams
Margin ranking and reserves currently being prepared, expect improvements in reserves and overall project economics
Further optimisation of the project and strategy will be completed once regulatory approvals are finalised