Tenke Fungurume. A Remarkable Achievement

Transcription

1 Tenke Fungurume A Remarkable Achievement

2 Project History 1996 TF Holdings Ltd (TFH), subsidiary of Lundin Group, acquires majority interest through public tender process FCX acquires option and mining convention negotiations commence to align Tenke development terms with the new DRC mining code Agreement reached on mining convention amendments. FCX exercises option. Study update commenced Construction started on phase one production First copper in March, Full production levels reached by year end. Third quarter 2009 cobalt plant and sulphuric acid plant commissioned. Full production levels expected in Fourth quarter 2009 expansion study commenced Optimization and expansion planning. 2

3 Ownership Structure FCX (U.S.) Lundin Mining Corp. (Canada) 70%* 30%* TF Holdings Ltd. (Bermuda) Gécamines (DRC) 82.5% 17.5% Tenke Fungurume Mining (SARL) * ownership through various subsidiaries (DRC) Beneficial Ownership FCX 57.75% Lundin 24.75% Gécamines 17.50% 3

4 A World-Class Project Largest Foreign Investment in DRC World-Class Design and Construction Significant Infrastructure Upgrades Expanding Social & Community Programs Workers install a liner for the Tailings Storage Facility Project Provides Important Benefits: Employment Local Services Taxes Children use one of the additional potable water wells at Fungurume Royalties Dividend Payments 4

5 Project Location KOV Kolwezi Kamoto Dikuluwe Kakanda Kambove TENKE FUNGURUME Likasi Democratic Republic Of Congo DEPOSIT TOWN RAILWAY Kipushi Ruashi Etoile Lubumbashi Zambia Kansanshi Zambia Km Konkola Musoshi Kinsenda Nchanga Chambishi Kitwe Nkana Luanshya Mufulira Sakania Ndola 5

6 Tenke Fungurume Concessions Tenke Plan Area Fungurume A Mining District Overburden Storage Processing Facility Tailings Pond Airstrip Construction Village Fwaulu Deposits Tenke Village Tenke Deposits Kwatebala Deposit Dipeta Syncline Exploration Power Substation Fungurume Village Dipeta Syncline Exploration Camp Pumpi Deposits 40 years of oxides from just these 3 deposits 5 km Facilities National Road 220 kv Power Line Copper Deposits Rail Line 120 kv Power Line 6

7 Oxide Ore F 005 N F 104 N F 103 N F 112 N Exploration Only half the concession has been explored Expansion feasibility studies now commencing Mixed Ore Sulfide Ore Bearing Beds At Depth 7

8 Key Data High-grade Copper-Cobalt Deposits Preliminary Reserves at 12/31/ million tonnes at 3.13% Cu & 0.33% Co 8.4 billion lbs Cu and 0.8 billion lbs Co Expected to continue to increase Open Pit Mine. Oxide ores with metal recovered by an agitated-leach Process. Producing copper cathode metal and cobalt hydroxide. Production 115,000 t Cu and 8,000 t Co per year (phase one) First copper in March 2009 Produced 70,000 t copper cathode in 2009 Cash cost expected to be less than 50 /lb at $10 Cobalt* * Targeted cash costs once design capacity in copper and cobalt circuits have been reached. Each $2.00/lb change in average prices of cobalt would impact unit net cash costs by 12 /lb of copper. 8

9 A Remarkable Achievement First Copper in March

10 Operations Overview Open Pit Mine (mined & stockpiled) Sulphuric Acid Plant Purchased Sulphur Infrastructure Power, Water, Roads Ore Acid Grinding (SAG Mill) Ground Slurry Leaching & CCD PLS Solvent Extraction (SX) Rich Electrolyte Electrowinning (EW) Tailings to Storage Facility Cobalt Plant Cobalt Copper Cathode 10

11 A Well Run Operation Surface Miner Loading Kwatebala 11

12 Feeder Fed by Loaders SAG Mill Ore SAG 12

13 13 Sulphuric Acid Plant

14 Leaching & Counter Current Decantation (CCD) Leach Tanks Thickeners & CCD Circuit 14

15 Tailings Storage Facility Tailings Storage Facility (First Phase) Return Water Dam Workers install a liner for the Tailings Storage Facility 15

16 Turbine Generator Infrastructure Road Upgrades N zilo Dam* * reservoir that stores & regulates the water to N seke Power Plant 16

17 Logistics Lobito Dilolo SITE Tunduma Dar es Salaam Kasumbalesa Ndola New Kapiri Mposhi Katimo Malimo Livingstone Chirundu Walvis Bay Groblersburg Beitbridge Komatipoort DRC Johannesburg Maputo Durban and Richards Bay Ndola (Zambia) Johannesburg (RSA) Dar es Salaam (Tanzania) Walvis Bay (Namibia) Richards Bay (RSA) Durban (RSA) miles 1,600 miles 1,555 miles 1,845 miles 1,875 miles 1,975 miles 1,000 km 17

18 Benefits to the DRC Taxes, royalties and dividends Through December 2009, TFM has paid more than US $200 million in taxes, duties, and other payments to the Government since construction began in US $80 million of Transfer Bonus Payments have already been made to Gecamines and an additional $20 million are scheduled Provision of local services Large local employer aggregate annual salary of $30 million Infrastructure investments: power and roads Best in class standards for environmental and social Freeport/Lundin committed to partnering for sustainable benefits to the DRC 18

19 Tenke Distribution of Benefits Direct Benefits 57% of Direct Benefits stay within DRC $2 copper and $10 cobalt 46% TF Holdings 43% DRC Government Tenke agreements fair, equitable, comply with Congolese laws, and enforceable without modifications Gécamines Dialogue continues with DRC 11% authorities to reach resolution Tenke investments in social programs and infrastructure rebuilding are unprecedented in scale and quality 19

20 Social Commitments 43 Water Wells for Rural Communities > 10 women s micro-savings groups 800T of corn produced with improved seeds for consumption by TFM Teaching in a TFM School Resettlement Housing 20

21 Economic Development Small & Medium Enterprise (SME) Development 3,000 SME employment opportunities created for local residents Agricultural Development In 2009 local supported farmers will meet 30% of region s maize requirements potential for growth 61 local vegetable producers to serve TFM and local markets Local SME WORTH Group Agriculture 21

22 Education Constructed 6 elementary schools In high schools being constructed Focus on improving quality of instruction (not only access to schools) Provides educational opportunities for an additional 7,200 students 22

23 Clean water and sanitation Malaria control HIV/AIDS training Community Health Indoor residual spraying Potable water well Distribution & installation of bednets 23

24 Social Investments Construction Phase Social, Environmental and Infrastructure Investments Village Resettlement Environmental Protection Community Development Community Infrastructure Initiatives Malaria Control Program Infrastructure (Power, Roads) $12 million $4 million $9 million $1 million $2 million $51 million TOTAL: $79 million 24

25 Ongoing Commitment TFM allocating 0.3% of annual net revenue to community development Urban growth management plan Supply chain development of local suppliers Agri-business and food security Urban water distribution systems in Tenke and Fungurume National and secondary road maintenance 25

26 Tenke A Truly Remarkable Achievement Priorities: With Sustainable Economic and Social Benefits to the DRC Optimizing existing facilities Continue concession wide exploration Expansion feasibility study - Q2/10 Increase current capacity by at least 50% Exploration and infrastructure development drive future expansions 26

27 2727 Thank You