NOLANS PROJECT ENVIRONMENTAL IMPACT STATEMENT

Transcription

1 NOLANS PROJECT ENVIRONMENTAL IMPACT STATEMENT APRIL 2016 Gavin Lockyer Managing Director Brian Fowler General Manager NT & Sustainability

2 Disclaimer Important Notice This presentation contains certain statements which may constitute forward-looking statements. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this presentation. No representation or warranty, express or implied is made by Arafura Resources Limited ( Arafura Resources ) that any forwardlooking statement contained in this presentation will occur, be achieved or prove to be correct. You are cautioned against relying upon any forward looking statement. Except for statutory liability which cannot be excluded, each of Arafura Resources and its related body corporates and their officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error in it or omission from it. Arafura Resources accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person, nor any obligation to furnish the person with any further information. This presentation does not constitute an offer of securities in Arafura Resources, nor an invitation to apply for such securities. This presentation does not provide investment advice or financial product advice. You should obtain professional advice and carry out your own independent investigations and assessment of the information in this presentation (including any assumptions) before acting. Information in this presentation which is attributed to a third party source has not been checked or verified by Arafura Resources. The information in this presentation that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Kelvin Hussey BSc (Hons). Mr Hussey is a Member of the Australian Institute of Geoscientists and he has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr Hussey consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears. Mr Hussey is a full-time employee of Arafura Resources. 2

3 The Company

4 Snapshot ASX listed company developing the Nolans Rare Earths Project near Aileron Project acquired by Arafura in 2001 Offices in Perth and Darwin Key Chinese investor since 2009 enhances access to rare earths expertise ASX Code Market 5c 1-year range Cash at 31/12/15 Debt ARU A$22 million cents A$14.7 million nil Nolan Bore Founding Directors (2004) 4

5 The Product

6 High Value NdPr Rare Earths (REs) 2g of RE magnets in an average smartphone 59% of total value of global RE market in Neodymium & Praseodymium NdPr Key input in RE magnets is NdPr no known substitute Up to 75 RE magnets, or 0.7kg NdPr, in a modern car RE magnets are 3x stronger and 1/10 th the size of conventional magnets Products are smaller, lighter, mobile and more affordable kg of RE magnets in a direct drive wind turbine Permanent magnet market forecast to grow at 10% p.a. and be worth US$20 billion in 2018 Nolans has the highest magnet leverage of any RE project in the world through NdPr product 5,300 tonnes p.a. ~10% of global demand 75-80% of projected revenue 6

7 The Project

8 From Mine To Market for 40+ Years 8

9 Close to Key Infrastructure Nolans Mine Site area Total project footprint: 35 square kilometres 9

10 The Orebody 56 million tonnes from surface containing 1.46 million tonnes of rare earths sales revenue of US$280 million per annum 1 on current prices Open at depth so project could expand beyond 40+ years The orebody also contains other minerals: 6.4 million tonnes of phosphate 10,000 tonnes of uranium ( sales revenue of US$8 million per annum 2 on current prices) 146,000 tonnes of thorium Phosphate, uranium and thorium are waste streams, but Arafura may consider future recovery and sale if prices improve and process improvements occur 1 Based on 20,000 tonnes p.a. 2 Based on 140 tonnes p.a. 10

11 Project Approvals Environmental More than $7 million spent since 2008 On track to lodge EIS with EPA in May Native Title Intensify discussions with CLC and traditional owners following EIS submission Groundwater Licence application October 2014: update imminent Over $2 million invested delineating a major groundwater system for Nolans Permanent water now being provided to local communities Nolans Weather Station (2008) Traditional Owners Meeting (2015) Borefield Drilling (2013) 11

12 Approvals Timeline Targeting Project approvals second half of 2016 Environment Land Water Complete In Progress Pending 12

13 Nolans EIS

14 EIS Studies Surface Water Groundwater Biodiversity Health & Safety Radiation Air Quality Socio-economic Impacts Cultural & Heritage Transport Kerosene Camp Creek (2011) Biodiversity Field Work (2015) Waste (rock, tailings, process residues) Mine Closure & Rehabilitation Nolans Region Aerial Radiometric Mapping (2008) 14

15 Cross Section at Day Creek 15

16 Extended Biodiversity Surveys Black-footed Rock Wallaby Brush-tailed Mulgara Great Desert Skink 16

17 EIS Baseline Monitoring 26 monitoring sites have been established on or around Nolans Measuring natural radioactivity in soil, plants and in the air 16 monitoring sites in creeks to measure water quality & flow information Many of these sites have been in place since

18 EIS Studies Findings Area Groundwater Biodiversity Findings Robust sustainable aquifers discovered that will deliver life of mine (LOM) water supply Aquifers recharged over time Communities use potable or near-potable water from bores quite distant from planned borefield Minor impacts predicted on community water supplies, other users, and on groundwater dependent ecosystems Robust populations of Black-footed Rock Wallaby and Mulgara present Limited impacts on above species predicted from planned operations Conservation status, diversity, geographic distribution and productivity of biodiversity in the region can be maintained via adherence to a Biodiversity Management Plan 18

19 EIS Studies Findings Area Radiation Transport Waste Findings Worker doses at operation predicted to be less than 3 msv/y Operation will result in negligible or minor radiological impacts to the public, non-human biota and the environment Post-closure doses expected to be negligible based on the closure criteria commitment, and would be minor in the event of failures Minimal impacts on existing road network during operations, including on road pavement and public s ability to access essential services Road upgrade limited to site access intersection with Stuart Highway No adverse impact on Alice Springs-Darwin rail freight line capacity, nor on availability of existing services to other users No acid or alkaline leachate drainage issues predicted from waste streams Large supply of waste rock available to cover radionuclides in tailings, process residues and waste rock dumps, where required 19

20 EIS Studies Findings Area Economic Impact during Construction (2-3 years) Economic Impact during Operations (40+ years) Findings Capital spend: $145 million in the Territory, including $71 million locally (total Project capital $1,190 million) Employment: 70 per cent FIFO and the remainder from the Territory (total estimated workforce ) Important boost for local business Operational spend: $38 million per annum in the Territory, including $18 million per annum locally (total annual spend $188 million) Employment: 70 per cent FIFO and the remainder from the Territory (total estimated workforce ) Impact on local economy: $284 million per annum Employment & training opportunities for local people New and ongoing opportunities for local business 20

21 Project Risk Summary 21

22 Stakeholder Consultation We have been meeting with stakeholders since 2008 EIS studies completed and monitoring ongoing Stakeholder consultation has escalated in recent months as EIS nears completion. EIS will be available for public comment in May-June. Arafura is committed to open and transparent consultation with ALL stakeholders as a core organisational value 22

23 The Plan for 2016

24 Experienced Board & Management Board of Directors Ian Kowalick Non-Executive Chairman Gavin Lockyer Managing Director Chris Tonkin Non-Executive Director Terry Grose Non-Executive Director Cungen Ding Non-Executive Director Management Team Peter Sherrington CFO & Company Secretary Richard Brescianini GM Exploration & Development Brian Fowler General Manager NT & Sustainability Lloyd Kaiser Marketing Manager 24

25 Looking Ahead EIS submission in May All Project approvals expected in late-2016 Refinement and completion of value engineering processes with potential for further CAPEX & OPEX reductions and consideration of scalability and/or staged development Material ready for large-scale piloting in 2016 Advance commercial JV arrangement with South Korean multinational OCI for offshore refinery and chemical supply Continue working with major Chinese shareholder ECE and others to identify strategic and financial partners (globally) to advance Nolans with minimal dilution 25

26 THANK YOU Contact: Brian Fowler GM Northern Territory & Sustainability T: E: eis@arultd.com