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Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province
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Dr Luke Longridge - Investment Company - Unlocking South Africa’s Next Iron Ore Province

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Dr Luke Longridge delivered the presentation at 2014 Africa Iron Ore conference. …

Dr Luke Longridge delivered the presentation at 2014 Africa Iron Ore conference.

The Africa Iron Ore conference is the annual gathering for iron ore and stainless steel executives engaged in the African Region.

For more information about the event, please visit: http://www.informa.com.au/africaironoreconference14

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  • 1. June 2014 Unlocking South Africa’s Next Iron Ore Province Dr Luke Longridge
  • 2. Disclaimer These presentation slides (the “Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Bushveld Minerals Limited (“the Company”) or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company. The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company, Fox-Davies Capital Limited or their respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Company accepts no obligation to disseminate any updates or revisions to such forward- looking statements. The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth companies, unincorporated associations or partnerships, the trustees of high value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relates is available only to such persons and will be engaged in only with such persons. Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides. The Slides should not be distributed, published, reproduced or otherwise made available in whole or in part by recipients to any other person and, in particular, should not be distributed to persons with an address in the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits of the securities offered hereunder and any representation to the contrary is an offence. No document in relation to the Placing has been, or will be, lodged with, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Placing or the Shares. Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland. The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended. The Slides and their contents are confidential and should not unless otherwise agreed in writing by Fox-Davies Capital Limited be copied, distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. Fox-Davies Capital Limited, which is authorised and regulated by the Financial Services Authority, is advising the Company and no one else in relation to the proposed Placing and Admission and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Fox-Davies Capital Limited. Any other person should seek their own independent legal, investment and tax advice as they see fit. Fox-Davies Capital Limited’s responsibilities as the Company’s Nominated Adviser under the AIM Rules will be owed solely to the London Stock Exchange plc and not to the Company, to any of its directors or any other person in respect of a decision to subscribe for or acquire shares or other securities in the Company. Fox-Davies Capital Limited has not authorised the contents of, or any part of, the Slides and no representation or warranty, express or implied, is made by as to any of its contents. Slide 2
  • 3. Slide 3 1 2 South African Iron Ore Production • 2011 – 53 Mt iron ore produced (South Africa 7th largest iron ore producer) • Bulk of production from N-Cape (Kumba Iron Ore 41.3 Mt, ARM 10 Mt) • Kumba aiming to increase production to 70 Mtpa by 20191 • Phalaborwa – expanding magnetite production 1 - Integrated annual report 2011
  • 4. Slide 4 1 2 3 South African Iron Ore Resources & Reserves • Kumba Iron Ore – 1.1 Bt Reserves (of which 99% is at Sishen & Kolomela), and 1.2 Bt Resources (58% N-Cape, 40% Zandrivierspoort magnetite project)1 • Assmang: 773 Mt resources, 635 Mt Reserves at Khumani & Beeshoek (both in N-Cape)2 • So currently3.2 Bt Resources & Reserves in N-Cape – at 50 Mtpa 64 yrs, at 80 Mtpa 40 years • Mittal exploring in N-cape, to begin mining in 2015?3, 4 1 - Kumba Iron Ore Annual Report 2013 2 - Assmang annual report 2012 3 - Mining Weekly, August 2012 4 - Financial Mail, March 2014
  • 5. Slide 5 1 2 3 South African Steel Production • Current iron ore production puts South Africa at 7th in terms of world production • Crude Steel production was 6.9 Mt in 2012 (22nd in terms of world production1) • Mapochs mine – mined 1.9 Mt ore, produced 660,000 tons of hot metal 1 – World Steel Association – World Steel in Figures 2013
  • 6. Slide 6 1 2 3 The Bushveld Complex Iron Ore Province • Upper Zone of the Bushveld Complex (characterized by presence of magnetite) • >20 magnetite (Fe3O4) layers identified in the various limbs of the Complex • Range in thickness from ~20 cm to tens of metres • Associated with Ti and V
  • 7. 7 The Bushveld Complex Upper Zone 1 – Ashwal et al. 2005 2 – Klemm et al. 1985 wt.% TiO2wt.% V2O5
  • 8. 8 The Upper Zone – Iron Ore Production Mapochs Mine (~2 Mtpa) • The Bushveld Minerals Project is situated ~ 45 km north-northwest of Mokopane in Limpopo Province • Located in the central portion of the Northern Limb of the Bushveld Complex (BC)
  • 9. The Bushveld Minerals Project Up to 13 km additional strike extensions Slide 9 P-Q Zone: 939 Mt resource defined thus far on ~ 40% of strike • Strike identified based on coincident geochemistry and airborne magnetics data interpretation • Total strike length potential identified to be >20km MML: 52 Mt resource
  • 10. Slide 10 1 2 Bushveld Iron Ore Potential • ~1 Bn tonnes per 10 km of strike extent (using the Bushveld Minerals project on the Northern Limb as an example) • Over 350 km of strike potential for this same layer, identified in the Western and Eastern Limbs of the Complex • So Potential for >35 Bn tonnes of resources on the Complex • Also Phosphate, Vanadium, Titanium
  • 11. Slide 11 1 2 Bushveld Iron Ore Project – Resources and Beneficiation MML (Indicated 0-120m): 51.81Mt @ 44.7% Fe, 9.7% TiO2,1.48% V2O5 P-Q Zone (Indicated & Inferred 0-400m): 939 Mt @ 33.5% Fe, 10.7% TiO2, & 0.2% V2O5 Phosphate Zone (Indicated & Inferred 0-400m): 442 Mt @ 3.6 % P2O5 Flotation Magnetic Separation Magnetic Separation P-Q Zone Concentrate ~55% Fe, 18-19% TiO2, 0.3-0.4% V2O5 MML Concentrate ~56% Fe, 12% TiO2, 2% V2O5 Phosphate Concentrate 36-39% P2O5
  • 12. 12 Traditional Iron Ore vs. Ti-Magnetite Ore Traditional Ti-Magnetite • ~62% Fe, low Ti, V, P, etc • Lumpy ore (>6mm) mined, fines often disregarded • Pricing ~US$ 100-120/ton • Mine and ship • ~20-50% Fe, 5-15% TiO2, 0.1-2% V2O5 • Very easily upgraded through magnetic separation to ~55-57% Fe, with TiO2, V2O5 • Needs to be milled to fine sizes for beneficiation • Pricing? Value in Fe Value in TiO2 Value in V2O5 • Requires beneficiation – more difficult, potentially more profitable
  • 13. 13 Creating Value from Ti-Magnetite • Create value for Fe and V, % Ti-slag may be amenable to further treatment to create a Ti product Concentrate DRI Kiln Furnace Hot Metal Ladle Ti-slag (30-35% TiO2) Vanadium Slag Product Pig Iron • If ore has high vanadium (i.e. MML), can extract Fe and V2O5 though smelting and vanadium ladle. Ti-slag (30-35% TiO2) TiO2 Sulphate Leach
  • 14. 14 Creating Value from Ti-Magnetite • For High-Ti, lower V ores, the challenge is to create value from both Fe and Ti Concentrate DRI KILN Furnace Hot Metal/Pig Iron Ti-slag (>60% TiO2) • This is WITHOUT flux – need to use little or no flux to ensure high Ti grades in the slag • But this creates problems for the slag and furnace – a corrosive, sticky slag
  • 15. 15 Creating Value from Ti-Magnetite • Alternatively, is there a way to separate the Fe from the Ti WITHOUT smelting? Pre-reduction tests on Bushveld Minerals P-Q Magnetite concentrate (-45 µm)
  • 16. 16 Creating Value from Ti-Magnetite – Pre-Reduction 1000°C 1050°C 1100°C 1150°C 1200°C
  • 17. 17 Creating Value from Ti-Magnetite – Direct Reduction for Fe-extraction • Direct reduction to high degree of metallization • Not just metallization, but coarsening of metallic iron. Greater temperatures required • Expect to form some molten/liquid iron droplets – rotary kilns are not suitable due to ringing • Use a Rotary Hearth Furnace (RHF)
  • 18. 18 Creating Value from Ti-Magnetite – Direct Reduction (RHF) Concentrate DRI Rotary Hearth Furnace Crushing/Milling and Magnetic Separation Metallised Iron Ti-slag (60% TiO2) • By directly reducing the iron, the iron forms metal droplets which coalesce to form metal pellets in a sinter • By doing this, one removes the need for smelting altogether • Following metallization and coarsening in the RHF, metal and Ti-slag could be separated by magnetic separation
  • 19. 19 Rotary Hearth Furnace • This technology already exists – Rotary Hearth Furnaces (RHF) currently manufactured by companies such as Midrex (ITmk3), also built in China – 48 m furnace commissioned in 2011 • Temperatures are higher than pre-reduction (1350-1450°C) • Commercial plant already in operation using iron ore fines • Ti-magnetite has additional products that can be generated
  • 20. 20 • Existing technology for separating iron from slag without the need for smelting! Other benefits: • Performs reduction and melting in one vessel • Uses non-coking coal • Produces high quality pig iron • Superior shipping and handling characteristics for iron nuggets • Reduce energy consumption versus other feed materials • Currently in production at Hoyt Lakes MN producing 500,000 tpa Direct Reduction for Fe and Ti-slag separation
  • 21. 21 Ti-extraction – sulphate process • Ti slag (>60% TiO2) not amenable to extraction of Ti through chloride leach process (levels of impurities are too high for use in fluidized beds) • Can be treated via the sulphate leach process: • 2H2O + FeTiO3 + 2H2SO4 = FESO4.7H2O + TiOSO4 (iron sulphate is precipitated) • TiOSO4+ H2O = TiO(OH)2 + H2SO4 (heating to 90°C) • TiO(OH)2 heated to form TiO2
  • 22. 22 Phosphate – another potential by-product 18˚ dip 160m 130m Conceptual Resource model • Hanging wall layer immediately above the P-Q Zone • Grades from 1.5 to >10% P2O5, with a broad zone averaging 3-4% P2O5 • Can easily be upgraded to a premium phosphate product 35-39% P2O5 through flotation • Igneous phosphate free of deleterious elements (Cd, U) • Bushveld Minerals – 442 Mt @ 3.6% P2O5 (over ~10 km strike) • Around the Bushveld Complex – potential for >15 Bn tonnes of phosphate resource
  • 23. Slide 23 1 2 3 The Bushveld Complex Deposits - Infrastructure • Close to existing rail • Good road network • Close to numerous coalfields • Existing ports • Water infrastructure is being upgraded
  • 24. 24 Ti-magnetite deposits of the Bushveld Complex - advantages • Large tonnage, shallow dipping orebodies • Easily concentrated through magnetic separation • Close to established infrastructure and coal supply • Need to be beneficiated to extract all elements of interest – possibility for a major new iron, steel, titanium pigment industry in Bushveld Complex • Benefit of extracting value for Fe, Ti, V • Exiting technology capable of easily extracting Fe, Ti and V (ITmk3, sulphate process, vanadium shaking ladle) • Phosphate layers in the hanging wall could further improve on the economics of these deposits. • Possibility to be a low-cost producer of pig iron/steel, vanadium, titanium and phosphate
  • 25. For further information South Africa Ground Floor, Block A 24 Fricker Road Illovo, 2116 Tel +27 11 268 6555 Fax +27 11 268 5170 Fortune Mojapelo Mobile: +27 82 73 999 69 Email: fortune.mojapelo@bushveldminerals.com Anthony Viljoen Mobile: +27 82 507 1439 Email: anthony.viljoen@bushveldminerals.com www.bushveldminerals.com Slide 25

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