Transcript Kenmare-Jan'08 Lend

Moma Titanium Minerals Project
Michael Carvill
Kenmare Annual General Meeting
9th May 2008
Overview of Kenmare Moma Mine
Export
Time Line for Handover of Mine
MSP
Handover
Scheduled
Handover
Dredgers & WCP
Handover
1st Shipment
Barge
Handover
Roaster
Sheduled
Handover
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Jun
2007
2008
So We Started Dredging…
Dredged over 5 Million Tonnes To Date
Wet Concentrator Working Well…
Mineral Separation Plant
.
Finished Product Storage
Bronagh J Operating Well
Loaded 7 Ships To Date
Sheltered deep water off Caldeira Island
Loaded 7 Ships To Date
Bronagh J Offloading to Customer Ship
Safety Statistics
YEAR
Man-hours worked
2007
684,508
Lost time Injuries (LTI)
0
LTIFR
0
Malaria Cases
342
Reportable environmental incidents
0
Minor injuries
39
Environmental Review
2003, the Design and Framework EMP was approved
by MICOA
2005 revised to focus on Construction Activities,
approved by MICOA
2007 revised to focus on Operational activities,
approved by MICOA
Internal and External Audits confirm environmental
impact minimised and in line with approved plans
Mtiticoma Resettlement Completed May 2007
KMAD: Achievements and
Outlook
Achievements
 Created a wide range of
development projects
 Used benefits of the mine to
create secondary economic
opportunities within local
communities
 Established a dialogue with
local communities to
increase ownership of
projects
Outlook
 New projects
- Sewing project
- Broiler project (Abattoir)
- Fishery
 Improve impact and create
institutions within
communities
 Social ‘engineering’
 Increasingly important role
for KMAD with fewer
employment opportunities
at the mine
But It Has Not Been Easy…
Fixed Price Contract
MULTIPLEX
Technical Issues
Faulty Screens Limit Current Production
Ilmenite Production Forecast 2008
80.0
70.0
60.0
Actual
000s t/month
Plan 2008
50.0
40.0
30.0
20.0
10.0
Aug07
Sep07
Oct07
Nov- Dec- Jan07
07
08
Feb08
Mar08
Apr08
May08
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Zircon Production Forecast 2008
6.0
000s t/month
5.0
2008 Plan
4.0
3.0
2.0
1.0
Jan08
Feb-
Mar-
08
08
Apr08
May08
Jun08
Jul08
Aug08
Sep08
Oct08
Nov08
Dec08
Current Market - Pigment
 Global Growth in 2007 of 3% to 3.5%
 Indian & Russian Pigment Growth Accelerating
 IBMA Forecast 3.2% CAGR Pigment Growth to 2015
 3 Price Increases in Past 6 Months
Current Market – TiO2 Feedstocks
 All TiO2 Feedstocks Were in Deficit in 2007
SP Ilmenite Price Increased by at Least 10% in 2007
SP Ilmenite for China ~ US$130 P/t FOB
Reduced SP Ilmenite Supply - Sustained Upward Price
Pressure
Strong Demand for CP Ilmenite from Dupont and
Ilmenite Upgraders - Ilmenite Production Declines
Strong Support From TiO2 Feedstock End Users for
Moma Expansion
Current Market – Zircon Market
 Zircon Is Entering a Period of More Balanced
Supply/demand –Moderate Surplus Expected in 2008
 Kalimantan Entered the Market Late in 2006
-Artisan Mining of Tailings – Uncertainty Over Sustainability
 Zircon Demand Growth Outlook Remains Strong –
4.3% CAGR to 2015
 Ceramics, Zirconia and Chemicals Remain the Growth
Drivers
Update on Nataka Resource
Recent mineralogy testing has shown that part of the Nataka resource contains
high-Ti ilmenite (above 55% TiO2).
Expansion Rationale
Kenmare Moma Product Pre-Sales at Fixed Price
Need Additional Production to Sell at Increased Price
Vast Reserve Available
Reduce Cost per Tonne – Eliminate One Drying Stage
Maximize Utilization of Existing Assets
Expansion Plan
Operate Both Dredges At Nameplate Capacity –
2,500tph
Modify WCP – Spirals Reconfigured
Build WHIMS Circuit – Separate Non-mags. Before
Drying
Testwork Underway in Australia
The Way Forward…
 One of the Largest Titanium Deposits in the World
 Bottom of Production Cost Curve
 In Production
 Significant Co-product Revenue
 Substantial Additional Resources
 First Expansion in Detailed Design