EMED Mining s Community Partnership in Cuenca Minera de Rio Tinto

Transcription

1 EMED Mining s Community Partnership in Cuenca Minera de Rio Tinto 1

2 EMED Mining Portfolio Slovakia Gold Spain Copper KEFI Minerals Cyprus Copper Saudi Arabia & Ethiopia A REGION WITH GROWTH POTENTIAL Established 2005: Ιn targeted exploration & mining districts 2

3 Emerging Cu & Au Producer Contributing to the recovery of mining in Europe Strong fundamentals for copper and gold Rio Tinto Mine low capital, rapid start up Large (606Kt) copper reserves Capacity to expand 9Mtpa project by >50% 1.1 Moz gold project in Slovakia Progressing permitting Exploring prolific districts in Central Europe 3

4 RIOTINTO: The Iberian Pyrite Belt 4

5 PRT fundamentals EMED is 100% owner of PRT Solid project supported by specialist shareholders 14 years mine life, plus expansion 123Mt Reserves /205Mt Resources 0.5%Cu Processing Plant in good shape: 9Mtpa capacity Key permits in direct jobs Project development: 150M Investment Total 310M 5

6 Mining Facilities & Process Infrastructure intact on care & maintenance Quick production restart in 6 12 months of permits Contribution to Spain s GDP > 1 billion in first 10 years Peak Rate ~9Mtpa in 1998 Recovery to Concentrate 82 86% Head Grade.49.61% Cu Concentrate Grade ~23% Cu 6

7 Intact Processing Facilities GRINDING CIRCUIT FLOTATION CELLS TAILINGS DEPOSITS PLANT SECTOR: GENERAL VIEW 7

8 Unemployment Spain (G Y) >26.2 (56.0) % Andalucía 36.32% Cuenca Minera > 52 % 8

9 Area of socio-economic impact PRT re opening will mainly impact Cuenca Minera development Opportunity for local applicants and contractors within PRT operative budget of 8M/month 9

10 Benefits to the region MACRO GDP Growth 1.300M EXPORTS Growth Foreign Investment Growth 310M DIRECT COMPANY TAX 90M LOCAL TAX SOCIAL SECURITY 24M INDIRECT TAX (VAT) 103M INVESTMENT + EXPENDITURE 1.600M INDIRECT 400 Workforce + indirect Training: accreditation Preference to local suppliers 8M/month budget Multiplier Effect 3x1 spent Foundation for Diversification (seed capital microcredit to entrepreneurs) Cultural Activities and Tourism Debts: Repay Social Security 16M ADDED VALUE NewMineral Resources yrs Technologies Updatedto current practice Local Smelter to buy concentrate Land To Community Heritage Enhance New businesses to survive mine Environment Improvement & Rehabilitation Bonding: Social ( 7M) & Environmental

11 Impacts on Employment EMED will be 1st employer in the region 400 direct jobs Training commencing this month Monthly Payroll = > 2M Salaries over average in other sectors Activate other local industries: 1,200 indirect jobs Services, maintenance, reagents, lime, spares, drilling contractors, etc Hospitality, tourism, culture 11

12 Impacts on the Economy 100M already invested Operations generate 3 locally for every 1 spent First 10 years of activity will provide: Total expenditure + investment = ~ 1.6B Taxes ~ 217M ( 90M + 103M VAT + 24M Soc. Security) PRT contribution to GDP = 1.331M Local concentrate consumer: bigger share of Cu value chain can stay local 12

13 EMED s Commitment EMED s primary commitment to developing the main Project (PRT) for the long term: Safe and efficient start up of production Safe and efficient extension of mine life beyond 14 years Leave mine clean, stable and restored EMED s parallel commitment: facilitating economic diversification into enterprises sustainable after mine life, via Fundacion Tartessus:

14 Fundación EMED Tartessus Controlled by entities that provide the funding Advised by technical experts in local development In consultation with the communities To work with the region s key strategic strengths: The skills developed for the mine The activities developed for the mine The assets of the mine The cultural heritage of the mine

15 Funding of Fundación EMED-T The funding base for Fundación EMED Tartessus aim to: Set ambitious targets, conservatively plan reliable outcomes Build momentum with regular reports to the community Grow its funding base by using the economic stimulus of PRT Be used to stimulate projects that become self sustaining Build collaboration between all stakeholders Avoid reliance on government subsidy INTEGRITY, TRANSPARENCY AND PROGRESS o To retain the trust of sponsors o To build the trust of the community

16 Partnership ON: Culture & Heritage 16

17 Partnership: Open to community 17

18 Partnership: Social & Sport 18

19 Partnership: Traditions 19

20 EMED s offer to Community Riotinto to be the central point of EMED s international activities Give not operational industrial land to community Microcredit/seed capital program for local business Committed contribution to projected Industrial Park Create an excellence center for research and training for mining and environmental management in collaboration with local Universities Promote heritage sites for tourism industry development 20

21 Heritage and Tourism Industry years mining + strong heritage = HUGE POTENTIAL ALL PRT is protected as BIC (Cultural Interest Asset) EMED to look after/promote 34 individual elements including: Roman Necropolis, settlements and adits 19th century works English era heritage Collaboration with local Rio Tinto Foundation Currently 75k visitors per year Attractions include: o First class mining museum o Archive o Old mine visit o Heritage steam train 21

22 Heritage and Tourism Industry Some of the things we currently work at Restoration of Ruston Bucyrus Crane Restoration of ALFREDO shaft Corta Atalaya historical open pit Visits to Roman Necropolis 22

23 EMED s Commitment: Sustainability Innovative alternatives for the improvement of concentrate grade and metal recoveries and the reduction of waste and seepage Rehabilitation of additional areas outside the PRT footprint affected by previous operators Progressive removal of pollution in the Odiel river basin according to Hydrographic Plan Ongoing project to test and potentially exploit some tailings and waste dumps 23

24 A Great Environmental Project EMED s environmental project is probably the most relevant contribution to local society and will represent TENS of millions of euros 24

25 A Great Enviro Project: Starting Point has AFFECTED LAND SINCE ROMANS INCLUDING: Tailings dams Waste dumps Flooded pits NO restoration NO encapsulation NO controls NO bonding NO plans ODIEL RIVER BASIN Affected by +80 abandoned mines show high levels of AMD pollution unparalleled anywhere else in the world 25

26 A Great Enviro Project: Operation New Project for Tailings Dams Less water & improved stability Progressive restoration New project for Waste Dumps: AMD control & improved stability Noise, Vibrations and Emission control Biodiversity: Specific plan for protected species and landscape BAT Management of waste & hazardous elements Environmental Surveillance Plan (PVA) Preservation of Heritage 26

27 A Great Enviro Project: Restoration 1.147,52 ha SEALED and RE-VEGETATED Concrete Channels: 5,7 Km Channels in terrain: 33 Km Deep Drainage: 19 Km Ditches: 50 Km TOTAL: 116 Km Mine waste dump encapsulations (MWDE). Disperse alkaline substrate (DAS) systems Connected pits in hydraulic equilibrium 27

28 Investing in the future IPB Consortium including EMED, CLC, Neves Corvo To present R+D regional project for European Innovation Partnership on Raw Materials To establish Pilot Action: EU program Build Pilot Plant To economically recovering Pb Cu Ag /Pb Zn Ag from polymetallic ore IPB = HUGE POTENTIAL = opportunity for EU IPB: million t Resources mainly polymetallic 28