MInotaur Mining & Energy Infrastructure 12 april 2011
SA Mining & Energy Infrastructure Conference, Adelaide 12-13 April 2011 Andrew Woskett, Managing Director Minotaur Exploration Limited ACN: 108 483 601 ASX: MEP
The Braemar Infrastructure Challenge 1. Disclaimer2. Introduction to the Braemar Iron Formation: where, what and why it is signiﬁcant 3. A mining development scenario: how big could it be4. Infrastructure proﬁle: Beneﬁciation Power & Water Concentrate Slurry/Rail Pellitisation Port
Cautionary StatementsThis presentation has been prepared by the management of Minotaur Exploration Limited (ASX: MEP) for the general benefit ofanalysts, brokers and investors and does not constitute specific advice to any particular party or persons. Information herein is basedon publicly available information, internally developed data and other sources. Where an opinion, projection or forward lookingstatement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression ofpresent opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency orreliability of the information. MEP specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims,damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, itsaccuracy, completeness or by reason of reliance by any person on any of it. Where MEP expresses or implies an expectation orbelief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief isexpressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks,uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include,but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes toassumptions for capital and operating costs as well as political and operational risks and government regulatory outcomes. MEPdisclaims any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to updatesuch forecast. The following presentation is a visualisation of possible infrastructure solutions to support potential future iron ore mine developments. Locations nominated for the provision of infrastructure facilities are for illustration purposes only and should not be considered viable technical, economic, environmental, social or State solutions for any future requirements
Braemar Ironstones: The next big (Fe) thing This presentation is based on a range of views and assumptions held by Minotaur alone and Minotaur does not purport to speak onbehalf of other mineral exploration companies with interests on the Braemar Iron Formation. Minotaur has not sought nor has it received any authorisation to make forward looking statements on behalf of other entities.This presentation conceptualises a development scenario for magnetite deposits on the Braemar Iron Formation. Being a concept, there is currently no supporting technical or economic justification. The integrated, multi-user infrastructure facilities envisaged are hypothetical in nature and scope and do not, in Minotaur s understanding, reflect third party intentions as presently contemplated. There can be no level of certainty that this or any concept may eventuate
Braemar Ironstones: what is it? a signiﬁcant regional sequence of highly magnetised sediments containing the magnetite form of iron The Braemar Iron Formation is emerging to potentially become Australia s next big iron ore province 100km SW of Broken Hill Heavy duty rail link 300km to Port Pirie or 325km to Port Germaine
Braemar Ironstones: Explorers several ASX listed explorers are active along the Braemar and all are reporting exploration success multiple zones, each potentially hosting hundreds of millions of tonnes of magnetite rich siltstones Regional potential for total Exploration Target of up to 20,000 million tonnes (Minotaur guesstimate) of in- situ Fe mineralised siltstone, circa 15-25% Fe content Could anticipate ~10 billion tonnes of mineable magnetite ore to be deﬁned through exploration The term "Explora/on Target" should not be misconstrued as an es/mate of Mineral Resources and Reserves as deﬁned by the JORC Code (2004), and the term has not been used in that context. It is uncertain if further explora/on will result in the determina/on of a Mineral Resource. Refer Cl 18 of the JORC Code (2004).
Braemar Ironstones: the potential scope Assume ~10 billion tonnes of mineable magnetite ore can be deﬁned scope for say 5 pits each mining 10-20Mtpa ore and beneﬁciating 5Mtpa of concentrate each gives a foreseeable 100 year regional life of mining @ nominal 100Mtpa mining rate with annualised output of 25Mtpa of blast furnace quality magnetite concentrates grading 65% - 70% Fe
Braemar Ironstones: Processing for 25Mtpa Con Assume ~10 billion tonnes of mineable magnetite ore can be deﬁned scope for say 5 pits each mining 20Mtpa ore and beneﬁciating 5Mtpa of concentrate each @ nominal 100Mtpa mining rate gives a foreseeable 100 year regional life of ore mining with annualised output of 25Mtpa of blast 6 fully autogenous grinding mills @ 28MW each furnace quality magnetite concentrates grading 65% - 70% Fe Beneﬁciation scenarios: 5 processing operations for 5Mtpa concentrate each, at +$2b Capex each, or one 25Mtpa Super Plant and assoc infrastructure at ~$6b, saving ~$5b overall, with scale to include a Pellet Plant (producing a value added product) equivalent to CITIC s $5.5b for 28Mtpa huge magnetite project at Cape Preston, WA photos sourced from www.citicpacificmining.com/resources/news 450MW Power station, combined cycle, gas fired
Braemar Ironstones: Water for 25Mtpa ConWater Supply scenarios: ๏ magnetite comminution and magneticrecovery circuits use vast amounts ofclean (demineralised) water ๏ process circuit will consume ~50Gl peryear (50,000 Mega litres pa or 135 Megalitres per day)๏ a desal (RO) plant will be required onSpencer Gulf (BHPB s proposed facility forODX is to supply additional 200 Ml/day fromPort Bonython area) Proposed Olympic Dam Expansion Desalination Plant, Point Lowly, 200Ml per day capacity Source: ODX EIS p136-154, Fig 5.32 ๏ 350km transfer pipeline, 1m diameter, plus 4 pump stations to deliver water to process facility ๏ annual operating power demand of 150,000 MWh CITIC Desalination Plant Feb 2011 photo sourced from www.citicpacificmining.com/en/news/progress-images
Braemar Ironstones: Power for 25Mtpa ConPower Supply scenarios: ๏ power demand of ~450MW(ODX requires additional 650MW generation)๏ consuming 3,000 GWh pa(ODX to consume additional 4,400 GWh pa) graphics sourced from www.petratherm.com.au/expmodel.html ๏ potential for geothermal energy from shallow hot rocks nearby at Petratherm s Paralana project ๏ potential for meshed 275kV transmission NEM network between Paralana-Port Augusta-Broken Hill, supplying 500MW into grid ๏ all in all, 1000km of new HV transmission network Disclosure: MEP holds an economic interest in Petratherm (ASX: PTR)
Braemar Ironstones: Transfer 25Mtpa Con to PortConcentrate Transfer scenarios: ๏ Rail: • 325km to Port Germaine (25km north of Port Pirie) • ARTC to upgrade E-W corridor in 2012 • 35km spur required into train loading bins • ballon loop required at each end for train turn around and 24 hour loading/unloading • 2000m long trains, 25 tonne/axle, 100 tonne wagons, 20,000 tonne capacity๏ Slurry Pipeline: • 360km buried pipeline to Port Germaine • requires 600mm diameter Con delivery pipe + Return Water Line • Examples: ✴ Century Zinc s 300mm diameter concentrate pipeline is 304km long, concentrate in slurry ✴ Minas Rio iron project, Brazil, 600mm diameter pipeline is 522km long, to transport 24.5Mtpa • 2-3 intermediate Pump Stations • Port Dewatering station & Concentrate storage
Braemar Ironstones: Port for 25Mtpa Con Berthing for 200,000DWT Cape Size vessels 125 ships loaded per year 4,000tph loading rate 320m long 20m draft jetty length ~3km ?
Braemar Ironstones: Downstream option for Con CITIC Stacker Reclaimer Feb 2011 photo sourced from www.citicpacificmining.com/en/news/progress-imagesPelletisation๏ Concentrate is agglomerated to form pellets for direct injection into a steel making Blast Furnace๏ Pellet plants are common in China. OneSteel has a 1.2Mtpa pellet plant at Whyalla steel making plant๏ in 2010 Iran commissioned a 5Mt pa plant (see photo) costing US$600 million๏ Pelletisation adds value to the concentrate product and is required before feeding into Blast Furnace๏ Pellets are easier to ship (no moisture content), less likely to release fugitive dust emissions๏ Australia is underweight in downstream value-add components of the steel making supply chain
The Braemar – evolving to be Australia’s next big Fe Infrastructure province? Minotaur Exploration Limited ACN: 108 483 601 ASX: MEP www.minotaurexploration.com.au