PETROPAVLOVSK PLC MINEX

Transcription

1 PETROPAVLOVSK PLC MINEX Russian Mining Club 3 December 2012

2 2 Cautionary and forward-looking statements Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Such statements reflect the Company s current views with respect to future events and are subject to risks, assumptions, uncertainties and other factors beyond the Company s control that could cause actual results to differ from those expressed in such statements. Although the Company believes that such forward-looking statements, which speak only as of the date of this presentation, are reasonable, no assurance can be given that they will prove to be correct. Therefore, you should not place undue reliance on these statements There can be no assurance that the results and events contemplated by the forward-looking statements contained in this presentation will, in fact, occur. The Company will not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation, except as required by law or by any appropriate regulatory authority. Nothing in this presentation or in documents referred to in it should be considered as a profit forecast Past performance of the Company or its shares cannot be relied on as a guide to future performance This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Petropavlovsk PLC or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore. In particular, this presentation and the information contained herein are not an offer of securities for sale in the United States No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents or otherwise in connection therewith The development and production plans and estimates set out herein represent the current views of the Company's management. The Company s Board reviews the production estimates on an ongoing basis. All planning is subject to available funding and capital allocation decisions This presentation has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this presentation

3 3 What is refractory ore? Mineralised rock resistant to recovery by standard cyanidation adsorption methods Natural Oxidation Process Generally contains sulphide minerals, which encapsulate gold particles, making it difficult for the leach solution to reach the contained gold Oxidation of sulphide minerals is necessary to recover the gold May also contain organic carbon that impedes recovery Takes several million years to free up

4 4 Artificial Oxidation Mineralised rock resistant to recovery by standard cyanidation + carbon adsorption methods Generally contains sulphide minerals, which encapsulate gold particles, making it difficult for the leach solution to reach the contained gold Oxidation of sulphide minerals is necessary to recover the gold May also contain organic carbon that impedes recovery Processing options for refractory ore Crushing + Grinding Concentrate is treated in a pressure vessel in a pure Roas%ng oxygen atmosphere at BIOX high pressure and high temperature Pressure oxida%on ( POX ) POX takes 45 minutes

5 5 Transformation of Pokrovskiy to POX Hub Simplified Pokrovskiy RIP plant flow sheet Addition of POX Crushing + Grinding Non- refractory ore Floata%on concentra%on POX Circuit RIP Doré Gold Bars Tailings Dam Tailings Dam Existing facilities to be integrated into the Pressure Oxidation Hub

6 6 Pokrovskiy POX processing concept PIONEER Flota%on Plant MALOMIR Flota%on Plant Recovery = 86% Concentrate = 240Ktpa Recovery = 88% Concentrate = 330Ktpa THE POKROVSKIY POX HUB Concentrate re- grinding Autoclave oxida%on RIP circuit Doré to refinery POX Plant Recovery = 93% for Malomir + 98% for Pioneer

7 7 Refractory Cost Guidance Less expensive Neutral More expensive Stripping 1 to 1 Limestone Less Dilu)on Fine Grind Not Required Savings on Chemicals Mining Crushing + Grinding Electricity + Oxygen Handling + Transport Compared with Pioneer bulk mining & processing total cash costs Note: weight sizes are not to scale

8 8 Location of the Petropavlovsk POX hub Existing roads Flotation Plant (670km from POX hub) Flotation Plant (40km from POX hub) POX Processing Hub Good infrastructure for development of a regional hub

9 9 A world class team of experts Valery Alekseev Group Head of Engineering and Construction Prof. Schneerson Director of Gidrometallurgiya R&D Centre Dr Sergey Ryakhovskiy Group Head of Metallurgy Viktor Federov Head of R&D Evgeniy Kudrin Technical Director of POX Hub Strong history of timely project delivery Responsible for construction of 5 mines + 7 plant expansions for Petropavlovsk International experience Authoritative expert in the field of autoclave technology 50+ years of experience Extensive experience working on POX projects incl. Nadezhdinskiy (Norilsk Nickel) Credited with 65 inventions 30+ years of experience Lead design + oversaw commissioning of all Group process facilities 12+ years of project management in ferrous and non-ferrous sectors Strong track record of managing + delivering logistically challenging + complex development projects 20+ years of experience of working in refractory ore processing Formerly Deputy Director for Production and Operations at Nadezhdinskiy POX Plant (Norilsk Nickel)

10 Our experienced partner: Outotec Outotec is an industry leader in minerals and metals processing technology Commissioned to provide project management services, including: - Detailed technical design of the POX plant - Equipment selection - Oversight of equipment manufacturing process - Installation - Commissioning Regular inspections to ensure all manufacture schedules are up-to-date Guarantee of throughput and designed processing regimes Outotec s experience includes: (1) - Design and commissioning of 4 base metal plants with autoclave technology - Designed and commissioning of hundreds of flotation lines around the world 10 (1) Includes experience when Outotec was a part of Outokumpu

11 11 The Blagoveschensk pilot POX plant First and only one of its kind in Russia, built Allows for extensive testing and optimisation of a full range of operational parameters (temperature, pressure, flow rate) - Used to train personnel Replicates industrial scale plant including automation and control systems - Exactly replicates processes and controls to be used at the future plant - Accurate prediction of recoveries, reagent consumption and operating costs - Complete understanding of the process before operations commence Scaled process replication = de-risked technology - Brings confidence to the POX plant design laboratory test work replicate conditions in industrial production The only pilot scale autoclave in Russia Unique pilot test plant = in depth simulation, project de-risked

12 12 Our very own POX plant, the only one of its kind in Russia

13 13 A Petropavlovsk autoclave vessel

14 14 Why is refractory ore the future of gold mining? The world is running out of easily treatable ore - Exploration is failing to balance out depletion of non-refractory ore - Approximately ¾ of Russia s reserves are refractory or partly refractory in nature, incl. Russia s largest gold deposit, Sukhoi Log A gradual shift towards refractory ore processing - Barrick Gold, Newmont Mining, Newcrest Mining, Agnico Eagles Refractory ore processing technologies have been successfully employed for decades around the world - First plant for base metals launched 1952, first gold POX plant launched 1985 (McLaughlin, USA) Kittila processing complex Autoclaves at Pueblo Viejo

15 15 Location of the Petropavlovsk POX hub Existing roads Flotation Plant (670km from POX hub) Flotation Plant (40km from POX hub) POX Processing Hub Good infrastructure for development of a regional hub

16 Presentation to The Natural Resources Forum 30 October 2012 Q&A 16