Advancing Production in the Labrador Trough

Transcription

1 Advancing Production in the Labrador Trough CIM MEMO 2014 Sept-Îles Plenary Session Presentation Sept. 11, 2014 Bish Chanda Sr. Vice President New Millennium Iron Corp 1

2 Forward-looking statements and other legal matters This Presentation contains certain forward looking statements and forward looking information (collectively referred to herein as forward looking statements ) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward looking statements. Forward looking information is often, but not always, identified by the use of words such as could, should, can, anticipate, expect, believe, will, may, projected, sustain, continues, strategy, potential, projects, grow, take advantage, estimate, well positioned or similar words suggesting future outcomes. In particular, this Presentation contains forward looking statements relating to future opportunities, business strategies, mineral exploration, development and production plans and competitive advantages. The forward looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimated results in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in the forward looking statements, including among other things: Inability of the Corporation to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, including business competition, changes in government regulations or in tax laws; general political and social uncertainties; commodity prices; the actual results of exploration, development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Corporation; timing and availability of external financing on acceptable terms; conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Readers are cautioned that the foregoing list is not exhaustive. The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this Presentation are made as of the date of this Presentation and the Corporation does not undertake and is not obligated to publicly update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. With respect to the disclosure of historical resources in this Presentation that are not currently in compliance with National Instrument , a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon. Dean Journeaux, Eng., is the Qualified Person as defined in National Instrument who has reviewed and verified the scientific and technical mining disclosure contained in this Presentation. 2

3 Renaissance of the Labrador Trough Located at the heart of the Canadian iron ore district, five mines were developed between the 50s and 70s With stagnation of the steel industry in the 80s, three mines survived by adopting austerity measures With strong growth in Chinese steel demand from 2000 on, iron ore spot prices rose rapidly by Many iron ore start-ups began exploration programs in the Trough with a view to build new mines Two Projects were built, namely Bloom Lake and Labrador Iron Mines. NML s joint venture is progressing to completion NML is also advancing the Taconite Project aiming to produce high quality pellets, with growing demand Building competitive low cost projects for growing markets is the key to success 3

4 Serving a Growing Demand for BF and DR Pellets Photo: Tata Steel Europe Photo: Midrex Photo: Energiron Higher Productivity achieved through: Uniform quality Higher purity Higher strength Lower fines generation Increased consumption due to mine depletion & ore degradation : Mine systems depleting Impurities rising More 'ultra-fines' generated Lower sinter plant productivity Addresses environmental concerns: Sinter plants under pressure Use of pellets in BF iron making reduces coke consumption and emissions Pellet usage in China has increased as government implements pollution controls Source: Wood Mackenzie, April 2013; NML market contacts 4 New demand from DRI-based EAF steelmaking: Lack of quality scrap Access to natural gas or coal EAF mills able to produce larger range of products Growth in the US and MENA

5 New Millennium Iron Corp. (NML): Introduction Precursor company was founded by experienced iron ore professionals in 2002 to develop LabMag Taconite deposit North of Schefferville Acquired vast Taconite resources (29 billion tonnes of reserves & resources) and direct shipping ore (DSO) deposits Strategic partnership with Tata Steel in 2008 to develop DSO Project Aiming to produce sinter fines and super fines, shipping started in 2013 and completing the processing complex in H1, 2015 Ramping up to 6 Mtpy capacity by end 2015 with a plan for further expansion Completed a feasibility study jointly with Tata Steel for a much larger Taconite Project Expected to produce 17 Mtpy of BF & DR grade pellets and 6 Mtpy of magnetic pellet feed 5

6 Strategic Partner with Captive Iron Ore Need One of the world s largest steel companies and part of India s premier business group Building a strategic production base in Canada a respected multi-national company Aiming to provide low cost feed for its European operations, which require ~20 Mtpy of iron ore Owns 26.2% of NML, has three Board members from most senior ranks and is partner in both DSO and Taconite projects 6

7 Project Development Strategy High quality products from ~30% Fe head grade Concentrate Fe 69.8% SiO 2 2.2% BF Pellets Fe 66.4% SiO 2 2.4% DR Pellets Fe 67.8% SiO 2 1.8% A partner with captive need located in Project s natural market area (W. Europe) Targeting high quality products with growing demand worldwide: Sinter fines with low alumina Low silica BF and DR grade pellets Simple geology and flat-lying orebodies require minimal stripping Meticulous test program with innovative processing technology The largest state-of-the-art proven equipment Pioneering slurry pipeline transportation in North America Environmentally sustainable development Building relationships with communities and stakeholders 7

8 Process Plant under Structural Dome 8

9 DSO Project Innovations Life-of-mine central processing complex is housed under a weather-proof structural dome -a first for iron ore Will be the first company in Schefferville to operate year-round Employing jigs and Wet High Intensity Magnetic Separators (WHIMS) to increase recovery and upgrade DSO to +65% Fe to meet Tata Steel s quality requirements a first in North America Centrifuge, filters, rotary and flash dryers to achieve < 2.5% moisture during winter for rail shipping Because of limited availability of hydropower, gensets will be used Heat recovery systems will reduce power costs: Supply heated process air to the dryers Heat process water to thaw frozen ore Heating the building 9

10 Panoramic View in Process Plant 10

11 Taconite Project The Company Builder NML and Tata Steel are jointly developing this Project with an aim to serve Tata Steel Europe s needs and satisfy a growing market for DR grade pellets around the world A very large scale and long term Project with various challenges Positive techno-economic study, jointly financed by Tata Steel (64%) and NML (36%) has been completed Additional work is in progress to make the Project investor- and lenderready before it is presented for an investment decision Partnership development with potential investors and offtakers is in progress 11

12 Simple Geology and State-of-the-Art Equipment Canada s first magnetic Taconite project, similar to Minnesota s Mesabi Range Shallow orebody near surface with low stripping ratio Open pit mineable with minor overburden and internal waste High Pressure Grinding Rolls (HPGR) replace SAG mills, resulting in substantial energy savings First in North America Photo: Outotech Largest and most technologically advanced pelletizing equipment 12

13 Cost-Effective Logistics Photo: Port of Sept-Îles Well-established slurry transportation solution has been used globally in various climactic conditions Gives the Taconite Project a competitive alternative to rail New multi-user loading dock at Port of Sept-Îles will handle full range of vessel classes and optimize transportation costs to all markets Potential to become one of the lowest cost pellet producers 13

14 Thank You TSX : NML OTCQX : NWLNF 14