LAS BAMBAS. December 2016

Transcription

1 LAS BAMBAS December

2 Important Information The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm),or published, in whole or in part, for any purpose without the prior written consent of the Company. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correction of the information or opinions contained in this presentation. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the Company s financial or trading position or prospects. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time, and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. None of the Company nor any of its respective affiliates, advisors or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation includes forward-looking statements. Forward-looking statements include, but are not limited to, the company s growth potential, cost projections, expected infrastructure development, capital cost expenditures, market outlook and other statements that are not historical facts. When used in this presentation, the words such as could, plan, "estimate, expect, intend, may, "potential, should" and similar expressions are forward-looking statements. Although MMG believes that the expectations reflected on these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. This presentation may contain certain information derived from official government publications, industry sources and third parties. While we believe inclusion of such information is reasonable, such information has not been independently verified by us or our advisors, and no representation is given as to its accuracy or completeness. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in the United States or any other jurisdiction and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto, nor does this presentation constitute a recommendation regarding the securities of the Company. This presentation is not for distribution in the United States. Securities may not be offered or sold in the United States absent registration or exemption from registration under the US Security Act. There will be no public offering of the Company s securities in the United States. 2

3 The Las Bambas Joint Venture MMG led consortium (JV) acquired Las Bambas on 31 July JV structure: MMG (62.5%), and GXIIC (22.5%), CITIC (15.0%). MMG operates Las Bambas on behalf of Joint Venture adopting MMG standards, processes and systems. JV Board Maximum six Directors with MMG appointing the Chairman. 3

4 About MMG Limited Global resources company that explores, develops and mines base metal deposits around the world. Established in 2009 and now operating on four continents. Objective to be valued as a top mid-tier miner by Headquarters in Melbourne, Australia - listed on the Hong Kong Stock Exchange and Australian Securities Exchange. MMG s major shareholder is China Minmetals Corporation (CMC).

5 MMG Limited: Operations and Projects 5

6 MMG Limited: Our beliefs Vision To build the world s most respected diversified base metals company. Mission We mine to create wealth for our people, host communities and shareholders. Objective We Mine for Progress To be valued as one of the world s top mid-tier miners by

7 Safety and sustainability Safety Performance Safety is our first value TRIF of 2.1 per million hours worked in Las Bambas TRIF of 1.01 in 2015 and 1.38 as of June Safety aligned with management incentives critical to performance. MMG CEO Chair of International Council on Mining and Metals (ICMM) Committed to ICMM 10 principles of Sustainable Development. Global partnership with UNICEF for child health, development partner with national governments. (1) Total Recordable Injury Frequency per million hours worked. (2) Las Bambas safety data incorporated into MMG from January US$ 63.5 million investment in social development programs in 2015 focus on Peru, Laos PDR and DRC.

8 MMG Limited: Executive team 8

9 MMG Limited: Board composition 9

10 Las Bambas: Local, experienced team MMG Las Bambas President Corporate Functions Vicepresident Operations Vicepresident SHEC Vicepresident human resources Vicepresidente Commercial & Finance Vicepresident Corporate Affairs Corporate Services Technical Services Safety & Health Recruiting Costs & Reporting Stakeholders Relations Legal Mine Environment Personnel Administration Taxes Regional Development Shared Services Concentrator Plant Community Relations Organisational Development Treasury Communications I.T. Maintenance Infrastructure Security Industrial Relations Risk Management Procurement Expansion of Resources Exploration Major Projects 10

11 Las Bambas is a world-class, high-quality asset Located in Cotabambas, Apurimac, Peru. Open pit mining method, conventional copper concentrator. Clean copper concentrate with gold, silver and molybdenum by-products. First quartile cost position. Mine life in excess of 20 years Only 10% of the tenement has been explored to date. Construction stage employed up to 20,000 workers. 11

12 Las Bambas is a world-class, high-quality asset Mineral reserves are 7.7 million tonnes of Copper and mineral resources are 12.7 million tonnes of Copper. Total annual production capacity estimated by Guidance on Copper contained in concentrate at 250, ,000 tonnes. First shipment sent on January Completed commissioning in 45 days and ramp-up in 5 months During the first 5 years, Las Bambas estimates a production of 2 million tonnes of Copper Global Top 6. 12

13 Community engagement has been aligned to project construction 13

14 Las Bambas Exploration Targets and Geology $ 14

15 Pit Ferrobamba The mine handles more than 160Mt of rock and ore per year. 50Mt/year of ore mined for plant processing. Approx. 10Mt of ore will be stored in stockpiles for future treatment. 15

16 Mining Equipment Loading 2 CAT 6060, 2 CAT 7495, 2 P&H 4100 and 1 Loader Le Torneau L2350 Drilling 2 P&H 320, 2 P&H 250, 2 CAT 6640 and 2 Sandvik T560 Carrying 44 Trucks Komatsu 930E-4SE and 6 Trucks Caterpillar 797 F Ancillaries 6 Bulldozers Komatsu 475, 4 Graders CAT 24M and 7 Wheeldozers CAT 844H 16

17 Crushing Primary crusher: two sets of gyratory crushers, located adjacent to the Ferrobamba pit. Four trucks in simultaneous dumping cycle. 17

18 Overland Conveyor Ore is transported from primary crusher to concentrator plant via an overland conveyor. Primary crusher is located 5km away from concentrator. Ore is discharged from conveyor to a singular stockpile with live capacity of approximately 18 hours of operation. 18

19 Concentrator Plant Conventional Grinding + Flotation 19

20 Grinding Area Ore reclaimed from stockpile via eight apron feeders. Grinding via two lines consisting of one SAG mill and one ball mill. Capacity of 140,000 tonnes per day. Nameplate process capacity of 51.1Mt a year. 20

21 Flotation Area Conventional Cu Mo froth flotation plant. 28 cells in rougher scavenger circuit and 22 cells in 3rd cleaning stage. Bulk concentrate piped to Mo separation plant adjoining bulk flotation plant. 21

22 Water Storage Tailings dam designed to cumulate process water for reclaim Make-up water (0-10%) sourced from Challuahuacho River, pumped through a 23km pipeline and stored at Chuspiri Dam - capacity of 4.2M m3 Underground water also used as a back-up water source Las Bambas recycles over 95% of its water 22

23 Tailings Thickeners Two Delkor Hi-rate thickeners with 80m of diameter. Slurry of underflow with 62 percent of solids. 23

24 Control Center Siemens PLC (S7300, 7400), with Schneider DCS Implemented Expert System by FL Schmidt for optimum milling rates Extending Expert System into Flotation and Tailings management 24

25 Power Electrical power is supplied from an existing substation at Cotaruse, located at 130km from Las Bambas, via a 220kV transmission line. ATN2 owns and operates the transmission line (18 years concession) 25

26 Transportation Copper concentrate is transported from Las Bambas to Matarani Port (744km). Concentrate is carried in closed containers. Extensive use of local contractors managed by dedicated logistics contract Transaltisa. Heavy Haul Road constructed and managed by Las Bamabs for $240m investment. Bimodal transport system: 458km by trucks using a public highway until Pillones Transfer Station. 286km by train from Pillones to Matarani using national railway. 26

27 Matarani Port Existing port operated by TISUR. New Berth F commissioned in 2016 to service Las Bambas, Cerro Verde and Antapaccay. Berth F includes: Exclusive train unloading building for Las Bambas. Exclusive 100,000 tonne concentrate storage shed for Las Bambas. New pier capable of receiving 55,000 DWT Supramax Bulk Carriers. Shiploader with 2,000 tm/h capacity. 27

28 Grinding Throughput (ktpd) Production: Grinding throughput Plant has running at design capacity since 22 April 5 months ramp-up Early failures with SAG electrical cards, lines, graters, trommel plates, cyclone pumps all resolved Grinding throughput Full reqt with two lines of grinding ktpd Line 1&2 (actual) Full Capacity one line Full Capacity two line ktpd Line 1&2 (bgt)

29 wmt Shipments , , , CU CONCENTRATE 2016 SHIPMENTS 121, , , , , , , , , , , , , , , , Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov ,938 WMT of concentrate shipped to November

30 Social Development in Las Bambas

31 Social Scope Province Region District Las Bambas Communal 31

32 Communal level: Resettlement process Resettlement process involved 514 families (approximately 3,000 persons). In-kind compensation included 441 houses constructed in Nueva Fuerabamba plus public infrastructure including schools, health center and community facilities. Livelihood restoration includes individual Family Life Plans with a vision of securing income generation, health and education for the Nueva Fuerabamba community. 32

33 Fuerabamba: Before and after 33

34 Fuerabamba: Before and after 34

35 Fuerabamba: Before and after 35

36 Fuerabamba: Before and after 36

37 District Level: Direct Investment by Las Bambas Direct investment (100% funded by Las Bambas): Large program: over US$ 310m contributed since Roads, schools, communal buildings, churches, health centers, water treatment, nurseries, fostering new businesses. Training: 2,000 locals trained in computer, carpentry, welding, electrical, maintenance, driving. Environment: 880ha reforested, 1.4 million trees planted. Support of cultural events. 37

38 Province Level: Social Fund of Las Bambas Managed by a Joint Board: company + government. Total of US$ 64.5m. Investments in sanitation, education, transport, infrastructure, agriculture enhancements. Education Agriculture Impact in Apurimac Indicators Extreme poverty 24% 8% Malnutrition 39% 22% Reading skills 16% 36% Math skills 9% 18% source : INEI Sanitation Electrification 38

39 Region Level: Government Program of Works Advanced royalties from Las Bambas: total of US$ 160m allocated by the Federal Government to Apurimac Region ( ). Direct involvement of Las Bambas assisting implementation of Government programs. 39

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