Braemar Bulk Export Corridor
Mining South Australia
November 26th, 2013
Braemar Infrastructure Objective
• To establish a low cost Logistics
Solution.
• To offer a viable logistics solution to
m...
Location – Location - Location

Key Infrastructure all close
•
Eastern States Power Grid
•
Gas supplies
•
Rail & Road Netw...
Corporate Structure
Coffee House
Group
Private investment vehicle of
Gordon Toll and Family

Lodestone
Equities

Braemar I...
Pricing Benchmark - CFR
China CFR Cost Curve
200

Australia

US$/dry tonne CFR Equivalent

180

China
160

Brazil
South Af...
Mining + Process + Logistics + Freight + Royalties
Large & suitable structure, Low Cost Conc, Logistics, Social & Other In...
Mining + Process + Logistics + Freight + Royalties
Large & suitable structure, Low Cost Conc, Logistics, Social & Other In...
Braemar Formation Exploration

8
Why IO that needs Concentration
• Remaining undeveloped or under-developed DSO
deposits with Triopoly
• Other deposits are...
Concentrate Process Flow
Diagram via Rail
Waste

Mine

Tailings

Crush
&
Grind

Concentrate

Unload
at
Port

StockDewater ...
Concentrate Process Flow
Diagram via Slurry
Waste

Tailings

Slurry
Concentrate

Mine

Crush
&
Grind

Mine Site

Concentra...
Braemar Bulk Export Corridor Diagram
Mines

Floating,
Processing,
Storage, and
Offloading Facility

Pump
Stations
Control ...
Contents of the Corridor
Slurry Pipelines

Process Water Pipelines

Mine
Sites

FPSO
KP0

Electricity
Transmission Line

B...
Preferred Corridor Route

14
Floating, Processing, Storage, Offloading

(FPSO) Configuration

15
3rd Party Services
Provisioned By BIPL
•
•
•
•
•

Process Water (Seawater)
Concentrate delivery to export vessels
Mine Sit...
Why Concentrate Pipelines
Producing concentrate allows for more cost effective infrastructure
Cost comparison for 25-30Mtp...
Why Concentrate Pipelines (cont.)
Producing concentrate has a lower environmental impact
Cost comparison for 25-30Mtpa fac...
Regional and State Benefits
• Employment opportunities
– 500 jobs during construction
– 1500-1700 jobs in mines and infras...
Project Status
• Conceptual feasibility study complete
• Approval process agreed with SA
government
• Easement/Land access...
Robust Business
Case Established

Project Scope
Defined

Project Ready
To Execute
Project Go Ahead

Appraise and
Define
Op...
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Nathaniel Toll, Braemar Iron: The Braemar Bulk Export Project

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Nathaniel Toll, Managing Director delivered this presentation at the 2013 Mining South Australia conference. The conference has been produced specifically for the South Australian mining and regional development community and represents a unique opportunity to hear the latest developments from the major projects, mines and explorers in South Australia. For more information on the annual event, please visit the conference website: http://www.informa.com.au/miningsa2013

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Nathaniel Toll, Braemar Iron: The Braemar Bulk Export Project

  1. 1. Braemar Bulk Export Corridor Mining South Australia November 26th, 2013
  2. 2. Braemar Infrastructure Objective • To establish a low cost Logistics Solution. • To offer a viable logistics solution to multiple iron producers • Unlock stranded assets in the Braemar region. 2
  3. 3. Location – Location - Location Key Infrastructure all close • Eastern States Power Grid • Gas supplies • Rail & Road Network • Coastline • Major Cities & Towns 3
  4. 4. Corporate Structure Coffee House Group Private investment vehicle of Gordon Toll and Family Lodestone Equities Braemar Iron Pty Ltd Investigating and acquiring Iron ore assets in SA 22.5% ownership Royal Resources Global Bulk Limited Olary Magnetite Pty Ltd Braemar Infrastructure Pty Ltd 4
  5. 5. Pricing Benchmark - CFR China CFR Cost Curve 200 Australia US$/dry tonne CFR Equivalent 180 China 160 Brazil South Africa 140 Other India 120 100 80 60 40 20 0 0 100 200 300 400 500 600 700 800 900 1000 1100 Cumulative Mt (wet, as delivered) CFR (Cost & Freight) includes all costs Mining + Process + Logistics + Freight + Royalties 5
  6. 6. Mining + Process + Logistics + Freight + Royalties Large & suitable structure, Low Cost Conc, Logistics, Social & Other Infrastructure, Close to Market Very thick, very wide, long intercepts of ore Very thick, very wide, long intercepts of ore Very thick, very wide, long intercepts of ore Very thick, very wide, long intercepts of ore 6
  7. 7. Mining + Process + Logistics + Freight + Royalties Large & suitable structure, Low Cost Conc, Logistics, Social & Other Infrastructure, Close to Market 7
  8. 8. Braemar Formation Exploration 8
  9. 9. Why IO that needs Concentration • Remaining undeveloped or under-developed DSO deposits with Triopoly • Other deposits are poor quality • Concentration generates quality products with low impurity. Concentration adds ‘Value’ not just cost • 68-70% versus 56-58% Fe (current typical Pilbara product) • Price premium can offset the cost of concentration • Magnetite concentrate gives customer ‘Energy’ as well as quality Fe • Concentration allows use of more cost effective mining methods compared with DSO 9
  10. 10. Concentrate Process Flow Diagram via Rail Waste Mine Tailings Crush & Grind Concentrate Unload at Port StockDewater Pile at mine StockPile at Port Load on Barge Load Transport Operation on Rail To Port Trans- Load on Export ship Ship 10
  11. 11. Concentrate Process Flow Diagram via Slurry Waste Tailings Slurry Concentrate Mine Crush & Grind Mine Site Concentrate Process water delivery Infrastructure Corridor Load on Dewater Export Ship Operation FPSO Technology subject to Patent Application 11
  12. 12. Braemar Bulk Export Corridor Diagram Mines Floating, Processing, Storage, and Offloading Facility Pump Stations Control and Maintenance base 12
  13. 13. Contents of the Corridor Slurry Pipelines Process Water Pipelines Mine Sites FPSO KP0 Electricity Transmission Line Blyth KP85 Connect to Grid KP133 Electricity Transmission Line KP339 Service Road KP Communications Cable Blyth Sub Station KP52 – This substation will provide power to the FPSO and various corridor facilities such as pump stations west of Burra. Grid Connection to Mines KP133 – Potential connection point between the Burra power station and the 275kv “Canowie – Robertstown (F1926)” transmission line. 13
  14. 14. Preferred Corridor Route 14
  15. 15. Floating, Processing, Storage, Offloading (FPSO) Configuration 15
  16. 16. 3rd Party Services Provisioned By BIPL • • • • • Process Water (Seawater) Concentrate delivery to export vessels Mine Site Access Power Transmission Communications Infrastructure 16
  17. 17. Why Concentrate Pipelines Producing concentrate allows for more cost effective infrastructure Cost comparison for 25-30Mtpa facility Port DSO Port $3.5B Concentrate Port $0.3B Logistics DSO Railway $7.5M/km Concentrate Pipeline $1.7M/km 17
  18. 18. Why Concentrate Pipelines (cont.) Producing concentrate has a lower environmental impact Cost comparison for 25-30Mtpa facility Port DSO Port Concentrate Port Large Stock Piles Stockpile in FPSO Logistics DSO Railway Noise, stockpiles, continuous land disturbance, requires groundwater Concentrate Pipeline Almost silent, no stockpiles, temporary land disturbance, sea water used for process 18
  19. 19. Regional and State Benefits • Employment opportunities – 500 jobs during construction – 1500-1700 jobs in mines and infrastructure for every 25 mtpa of capacity *Mine and infrastructure – Multiplier effect 2.5-3x the jobs created to support increased workforce and support operations • Infrastructure • Royalties = $125 million/year 12
  20. 20. Project Status • Conceptual feasibility study complete • Approval process agreed with SA government • Easement/Land access strategy developed with SA government • Case management team assigned by government • Community engagement started • Major Development Declaration • Foundation customer: Royal Resources MOU • Seeking funding for Pre-feasibility studies and approvals 20
  21. 21. Robust Business Case Established Project Scope Defined Project Ready To Execute Project Go Ahead Appraise and Define Opportunity • July 2013 • Demonstrate economics • Certainty in land access and approval pathway • Produce investor presentation PreDefine Feasibility Scope Study • • • • • • • • • 1.5 Years PFS Complete Resource Definition Name brand consultants Project Scope Defined Land access secured by purchases and options Initial design size optimized Environmental studies conducted PER, EIA, or EIS prepared Define Project • 0.5 - 1 Year • DFS Complete • Definitive Engineering • Definitive Project Plans & Contracts • Control cost estimates • Procurement packages developed • Final land payments Execute • 2.5 year construction Operation • First Production as early as Late 2018 • 30+ year operation • Additional slurry lines and process water lines added to corridor as required 21 21
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