Tellus Chandler Salt Mine Project Briefing 11 th September 2013 - 7th annual Mining the Territory I Darwin Convention Centre Duncan van der Merwe - Group Managing Director Salt / Minerals Tellus Group Storage Industrial & Edible Salt Minerals -Fertiliser Storage / Disposal Renewable Energy Salt Mine Tourism Spin Off Salt Business Chandler Project (NT) Complementary
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Tellus Chandler Salt Mine Project Briefing11th September 2013 - 7th annual Mining the Territory I Darwin Convention Centre
Duncan van der Merwe - Group Managing Director
Salt / Minerals
Tellus Group
Storage
Industrial & Edible Salt Minerals -Fertiliser Storage / Disposal Renewable Energy Salt Mine Tourism
Spin Off Salt Business
Chandler Project (NT)
Complementary
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Important Notice and Disclaimer
Summary information
This presentation (Presentation) has been prepared by Tellus Holdings Ltd (ABN 97 138 119 829) (Tellus) and is for information purposes only. This Presentation
contains summary information about Tellus and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is
of general background and does not purport to be complete. It should be read in conjunction with other periodic announcements on www.tellusholdings.com.au.
The key information on detailed Exploration Target statements and feasibility results can be found in Tellus ’s media releases. Exploration Targets statements are
appended to comply with ASX guidelines but investors are urged to read supporting information in full on the website.
Future performance This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”,
“will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of
applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-
looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice,
as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements, opinions
and estimates are not guarantees of future performance.
Not an offer
This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither this presentation nor anything
contained in it shall form the basis of any contract or commitment.
Competent Person Statement
The information in this presentation that relates to exploration results is based on information reviewed by Dr.Simon D. Beams, a full time employee of Terra
Search Pty Ltd, geological consultants employed by Tellus Holdings Limited. Dr. Beams has BSc Honours and PhD degrees in geology; he is a Member of the
Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member # 2689). Dr Beams has
sufficient relevant experience in respect of the style of mineralisation, the type of deposit under consideration and the activity being undertaken to qualify as a
Competent Person within the definition of the 2004 Edition of the AusIMM’s “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”.
Exploration Target
Note All statements as to exploration targets of Tellus salt and statements as to potential quality and grade are conceptual in nature. There has been insufficient
exploration undertaken to date to define a salt resource and identification of a resource will be totally dependent on the outcome of further exploration. Any
statement contained in this document as to exploration results or exploration targets has been made consistent with the requirements of the Australasian code for
reporting of exploration results, mineral resources and ore reserves (“JORC Code”).
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Contents
About Tellus Holdings Limited
Project Locations
Tellus Salt and Associated Mineral Products
Situation, challenge and solution
Chandler Project Overview
Appendix
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3
4
5
A
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About Tellus Holdings Limited1
• Public unlisted company
• Founded July 2009• Exploration company
with portfolio of rock salt and kaolin clay deposits
• 70M shares
• Strong Board and management team
• Proven track record of developing and operating mines and storage projects
Chlor-alkali PVC, soap and detergents, pulp and paper
Other industrial (fluxes)Aluminium fluxes, oil & gas drilling, pharmaceuticals, textiles
Water treatment Water softening, swimming pool water chlorinators
Animal feedstuffs Salt licks, some with dietary supplements
Specialty salts (Alice Springs)(1)
Flavoured gourmet salts, salt curios, building material
Tellus salt and associated mineral products3
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Salt - situation▪ World salt production 38% solar, 31% rock, 31%
brine with >95% Australia production via solar ponds
▪ Asia consumes 40% (137M tpa) of global supply, growing at 5% pa
▪ Australia produced 16Mt of salt in 2010 - largest producers - Rio Tinto Dampier Salt & Mitsui (14.4M tpa, 90% national total)
Situation, challenge and solution
Salt - Tellus’ competitive advantage▪ Tellus is in a strong position to meet Asian demand
by providing a guaranteed volume and quality of salt▪ Large scale resource – easily scalable▪ Reliable supplier - not influenced by climate▪ Associated minerals – e.g. fertilisers (high value)▪ Cross selling storage solutions to salt buyers with
storage problems
Salt - challenge▪ Difficulty getting environmental approvals
for new projects (3 recent failed applications for solar ponds 2.5M, 3-4M & ~1M tpa)
▪ Australian & Asian salt produced mostly by coastal solar ponds – heavy rain disrupts supply for months at a time
▪ No rock salt mining exists in Australia -yet
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1
2 3
Source: Salt: Global Industry Markets and Industry Outlook, 2011
Cyclone map – 25 years
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Experienced management team in place5
Experienced corporate team Experienced commodity team Experienced waste management team
Mine development engineer BHP, Rio, Xstrata, Anglo Coal
Ex UBS, FBR Capital & Credit Suisse, Signature Gold
Ex FD Newalta, Canada’s largest salt cavern waste storage operator
Ex WA Environmental Regulator, Managed only Class V waste facility
Ex BD Director Penrice Soda, roles ICI Australia, Merck, Ajax Chemicals
Ex GM Dampier Salt, Ex CEO of Albany Port (WA)
Mark ShepherdTellus RockVault NED
John CookTellus RockVault Chair
Michael CarterTellus Salt Sales
Bob EmeryTellus Salt Chair
Ex NSW Chief Mining Engineer, Ex MD Waste Service NSW
Ex MD Coffey WA, managed Australia’s only Class V waste facility
Akira HaradaTellus International NED
CEO MCN Corp Ex GM Okaru & Co, Japanese trading houses
Tellus consists of an exceptional board and management team with key individuals having a proven track record developing large complex mines and heavily
regulated storage projects
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Chandler – Rediscovering the Chandler Salt Bed
Source: McGraw Hill
Source: xx
Image: Victoria Museum, Source: Colorado Plateau GeosystemsSource: Colorado Plateau Geosystems
Cambrian -580myo lifeless land teeming ocean Salt trap for oil and gasGillen 700myo-Chandler 500myo-Late Cambrian
Source: Ambrose and Young (2007)
Mt Charlotte 1 Well – 95% haliteMt Charlotte 1 and Magee 1 (6.6km)145km seismic, 6.6km core
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Potentially Australia’s largest UG salt deposit
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Chandler - Mine Site
Production -salt1M tpa salt and associated minerals (3 year ramp up)Scale up depending on market
Mining method Underground, room and pillar design, cut and blast mining
Room dimensions140mL x 10mW x 6mH 10m support pillar
Darwin marine supply base –service hub for NW offshore oil and gas industry
Cross selling servicesDrilling salts (mine to oil & gas operations)Drilling muds/waste (oil & gas operations to mine site (disposal)
Sandy Ridge
Chandler
ClayVault
5 Chandler - potential to service oil, gas & mining industry
Darwin
Gulf of Mexico
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Chandler – 6 skin safety case 5 Tellus ISO compliant
Five engineered barriers and one natural salt barrier – 200-350m thick
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Chandler – Darwin port – marine supply base5
Tellus 3ha transfer station
Port
Railway that runs past mine
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Chandler – Darwin port – marine supply base
Bulk & container handling infrastructure for salt exports
Darwin – marine supply base (artist impression)
Darwin – main marine supply base for offshore oil fields
$35billion Inpex project being built in Darwin
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Marine supply base
Large volume of upstream, midstream and downstream oil and gas waste – Chandler well suited to take it
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What are the opportunities for Central Australia?
Pre mine Mine build Mine operations
Jobs –exploration
Training - apprenticeships, traineeships, work experience
Training - apprenticeships, traineeships, work experience
drilling Jobs – mine & plant build Jobs – mine & plant operations
ecological Jobs – Alice & Darwin plant build Jobs – Alice processing plant operations
studies Business opportunities – mine contractor services
Business opportunities – salt related & mine services
Sponsorships Community benefits trust
Sponsorship
Environmental offset program – improving the land (ranger programs)
Infrastructure – power, improved roads, training centre, visitor centre
Tellus has a commitment to local employment and training
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How have neighboring communities benefited from salt mines? German case study - Sondershausen
http://www.erlebnisbergwerk.com/
Underground (UG) tourism attractions
Underground mine tours (3 hours)
UG sports events: mine marathons,
mountain bike races, ten pin bowling
UG cultural events: music events,
private functions (weddings, corporate)
Catering for 200 people (beer hall)
Benefits• ~ 20,000 UG visitors per year• ~ $4m in local economy per year• Transport, hotels, food, souvenirs • Community pride• Renewable energy• Viable mine – salt/backfill – large local
employer, intergenerational
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Chandler - timetable approvals & agreementsC
han
dle
r
Completed Pre-feasibility study (FEL2)
National search for best salt deposit
Secured and expanded NT EL leases
Expanded team
Mine Management Plan –EO approved
Exploration Deed signed
Definitive feasibility study (FEL3)
Completed desktop study (FEL1)
Positive early stage commercial negotiations
JORC Expl. target
Stu
die
sC
om
me
rR
egu
lat.
MMP– Operations application & EIS
Extensive community & government engagement
Approvals mid 14
Financial close
Final engineering (FEL4) & build
2010 2011 2012 2013 2014 20152009 2016
1st salt sales
Final commercial negotiations
JORC Resource
What has been achieved to date << >> Future milestones
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1st storage sales
DFS Stage 1
DFS Stage 2
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Tellus Holdings & Tellus Salt Contacts
Tellus HoldingsLevel 5 / 71, Macquarie Street, Sydney NSW 2000